- Cosmos switches gears for the fast lane to mass adoption.
- ATOM fails to overcome range amid low volatility and limited volumes prevail.
The blockchain interoperability concept made rounds during the 2021 crypto bull run, and was championed by the likes of the Cosmos network. Unfortunately, they had to pump the brakes when crypto winter came. However, Cosmos is now attempting to revive the hype once again.
Is your portfolio green? Check out the Cosmos Profit Calculator
Cosmos’s latest announcement revealed its intentions to start pushing towards building and expanding an interconnected internet of blockchains again. The network disclosed that it plans to work on the implementation of IBC with solidity, a move that will make it possible for Ethereum [ETH] to be connected to Cosmos.
1/ 2023 is the year that #IBC will expand to new blockchains, including #Ethereum@datachain_en, an @interchain_io granted team, is working on IBC-Solidity.
The Solidity implementation of IBC aims to connect Ethereum to #Cosmos ⚛️ pic.twitter.com/tPVD6lnl6v
— Cosmos – Internet of Blockchains ⚛️ (@cosmos) April 6, 2023
Cosmos further noted that IBC-solidity will enable the transfer of data, tokens, and messages to multiple blockchains through IBC. This includes enterprise Ethereum and all the EVM-compatible blockchain networks.
Why Ethereum is such a big part of Cosmos’ plan
The Ethereum network can be considered as the most popular blockchain and also the most adopted blockchain network at the moment. Additionally, many networks hope to tap into its robust liquidity. This will become much easier to conduct via the IBC as soon as it gets connected to Ethereum. The overall goal is to facilitate a smoother flow of value across different blockchain networks.
Unsurprisingly, the announcement about Ethereum came just a few days after Cosmos revealed its global expansion plans. From a strategic point of view, onboarding Ethereum before executing a global expansion plan might make Cosmos and the IBC more attractive to other potential prospects.
What does the future look like for ATOM?
The demand for ATOM should go up as more blockchains get connected to the Cosmos hub. This is because the coin is necessary for projects looking to join the Cosmos ecosystem. As far as ATOM’s performance is concerned, at press time, the token was still trading at a slight premium as compared to its December 2022 lows. However, it delivered sideways action for the last 12 days or so.
Source: TradingView
ATOM’s relative strength improved over the last few days and was attempting to push above the 50% Relative Strength Index (RSI) level. This was of course backed by accumulation as indicated by the Money Flow Index (MFI). Furthermore, ATOM could also witness a bullish breakthrough if it manages to break past the RSI mid level. Failure to do so may lend favor to the bears.
How many are 1,10,100 ATOMs worth today
ATOM’s volatility was at its highest four-week peak at mid-March. Volatility has since then been declining since then. This reflected the lack of momentum as seen in the last two weeks. Similarly, weighted sentiment remained low suggesting a lack of confidence in the market.
Source: Santiment
However, there were some positive sentiments such as the growing development activity metric. This combined with the Binance funding rate’s recovery confirmed that demand was recovering in the derivatives segment.
Source: Santiment
Things may turn out favorably if Cosmos proceeds and succeeds with its plans this year. Such an outcome would certainly boost ATOM’s potential value.
FAQs
IBC isn't limited to Cosmos chains, either. The trustless interoperability protocol has broadened its scope to include EVM-compatible chains such as Ethereum, Polygon, and Avalanche.
Can Cosmos interact with Ethereum? ›
Interoperability and staking hub Picasso Network has successfully integrated the Inter-Blockchain Communication (IBC) Protocol with Ethereum. This means that Ethereum can now transfer assets and data natively with the Cosmos Hub, Polkadot and Kusama via IBC.
How is Cosmos different from Ethereum? ›
While Ethereum operates as a single blockchain, Cosmos allows for the creation of multiple independent blockchains within its ecosystem. This flexibility enables developers to tailor their blockchains specifically to their use cases. Whether it be gaming, enterprise solutions, or beyond.
Can Cosmos beat Ethereum? ›
How does the performance of Cosmos Vs Ethereum compare? Cosmos often has the edge in scalability and transaction speed thanks to its inter-blockchain communication.
Is Cosmos IBC trustless? ›
Cosmos arrives on the scene
Union leverages zero-knowledge proofs in the IBC to create trustless, decentralized, and permissionless interoperability.
Can Cosmos crypto reach $1000? ›
The content and materials featured on this page are for educational purposes only. Experts suggest that Atom (Cosmos) has the potential to reach or even exceed $1000 by 2025, influenced by ecosystem growth, market trends, and technological advancements.
Does Cosmos crypto have a future? ›
The live price of the Cosmos token is $ 6.36303993. Cosmos price could reach a potential high of $25.06 by the end of 2024. ATOM price could reach a potential high of $89.05 by the year 2030.
Which crypto can overtake Ethereum? ›
Cardano has also been dubbed an "Ethereum killer" because its blockchain is said to be capable of more. That said, Cardano is still in its early stages, with a long way to go regarding DeFi applications.
Is Cosmos an Ethereum killer? ›
Examples of Ethereum killers include Solana, known for its high transaction speed; Polkadot, which emphasizes interoperability; Cosmos, focusing on a network of interconnected blockchains; and Avalanche, recognized for its consensus mechanism enhancing scalability and transaction finality.
Which blockchains use Cosmos? ›
Furthermore, the Cosmos SDK allows users to connect their own blockchain to the Cosmos Network via IBC, increasing liquidity and user adoption. The Cosmos SDK has also been used to construct a number of key blockchain and cryptocurrency projects, such as Binance DEX, Kava, Terra and IRISNet.
Here are the primary ways in which ATOM tokens currently get burned: Transaction Fees: A portion of the transaction fees collected on the Cosmos network can be burned. This is a common practice in many blockchain ecosystems to control the circulating supply of the native token.
Should i buy Polkadot or Cosmos? ›
Go with Polkadot if your priority is a scalable, interoperable platform with a shared security model. It suits projects planning to create multiple blockchains (parachains). Moreover, it can easily interact while enjoying the security of the Polkadot relay chain.
Which crypto can beat Ethereum? ›
Solana (SOL)
According to data from crypto data provider CryptoSlam, NFT sales on the Solana blockchain ($366.5 million) exceeded those of Ethereum ($353.2 million) for the first time in December 2023. This strong interest in Solana from retail users.
What is Ethereum compatible? ›
Ethereum-compatible blockchains are distinct blockchain platforms designed to support the Ethereum Virtual Machine (EVM), enabling them to run Ethereum's smart contracts and DApps with little to no modification.
Is Ethereum ERC20 compatible? ›
Compatibility: ERC20 tokens integrate with existing Ethereum infrastructure like wallets and exchanges, facilitating their creation, management, and trade.
What is the IBC protocol for blockchain? ›
The IBC protocol provides a permissionless way for relaying data packets between blockchains, unlike most trusted bridging technologies. The security of IBC reduces to the security of the participating chains. IBC solves a widespread problem: cross-chain communication.
