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- But why isn’t Cosmos growing like an Ethereum killer?
- Does that mean Cosmos is a bad project?
Cosmos (ATOM) is one of Ethereum (ETH)’s competitors with one of the best market caps. However, it hasn’t garnered much attention, losing the popularity contest and capital to other so-called “Ethereum killer” networks like Cardano (ADA), Solana (SOL), and Tron (TRX).
Launched in 2019, Cosmos has evolved into an ecosystem in which multiple networks can communicate with each other and overcome the scalability and interoperability issues that affect many cryptocurrencies, including Bitcoin (BTC) and its rival Ethereum.
The cryptocurrency is based on a hub-based architecture, where each hub is an independent blockchain that acts as a bridge between other networks. This allows different cryptocurrencies to be exchanged and used with each other without the need for a centralized crypto exchange, reinforcing the idea of a centralizer-free ecosystem.
But why isn’t Cosmos growing like an Ethereum killer?
First of all, Cosmos solves the problem of lack of communication between networks only in its ecosystem or hubs. So not just any blockchain can reach Cosmos and exchange smart contracts, for example. This contradicts the expectation that Cosmos could be a high-performance Layer 0 network.
Another factor hampering the growth of Cosmos is the value of the token to its ecosystem. You’ve probably heard that developing on the Ethereum blockchain is expensive and that fees are paid via the network’s native token, ETH. However, the same meaning that ether has for the leading smart contract platform, ATOM does not have for Cosmos.
On the altcoin network, appchains can create their own logic, eliminating the need for ATOM as this technology runs its sovereign blockchain instead of a smart contract implemented on another chain.
Also, the ATOM community is far from the supporters of other ETH rivals like Solana and Cardano. The community around it is very important for a cryptocurrency, because without it hardly any project – even a serious one like Cosmos – can survive. Without gaining more audience, the cryptocurrency may continue to lose ground not only to smart contract platforms, but also to altcoins with no real value proposition such as Dogecoin (DOGE) and Shiba Inu (SHIB).
Does that mean Cosmos is a bad project?
no The altcoin, despite facing some challenges, remains in the top 10 assets with the most development activity, proving that its network is growing and that more people will be using it soon.
It is also worth noting that although Cosmos is not one of the cryptocurrencies with a large community, it has a regular presence on social media, which is also very important.
In addition, it has established important partnerships and blockchain industry projects use its network. A great example of this is the arrival of the DeFi dYdX protocol on its blockchain.
Other advantages of Cosmos are:
- Scalable network with low fees;
- Passive income through staking;
- third generation blockchain;
- Has caught the attention of DeFi dApps;
- Developer friendly environment.
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