Cosmos (ATOM) Price Prediction
Atom showed up on the market in 2019, but work on it began back in 2017. The entry of the project goes back to 2014. That’s when Jae Kwon designed the Tendermint protocol, which is a technical answer to the “Byzantine generals’ problem” (how to reach consensus in a network where no one trusts anyone).
In 2017, Jae Kwon and Ethan Bookman founded Tendermint, which launched the Cosmos project. It goals to decide the main problems of traditional blockchain:
- Problem 1 – slow performance and poor ramp-up of networks with the PoW algorithm; the solution is a fast, secure, and well-scaled Tendermint protocol
- Problem 2 – technical complexity of launching a new blockchain or decentralized application; solution – a simple modular system to create your blockchain using any programming language (Cosmos SDK)
- Problem 3 – isolation of individual blockchain networks; solution – unique technology for exchanging transactions and data between chains (Interblockchain Communication).
Cosmos is a global ecosystem that connects different blockchains. Or, as the developers themselves say, “the Internet of Blockchains. The system has its blockchain – the Cosmos Hub. There are smaller hubs and so-called zones that “belong” to other networks. Conventionally, there is an Ethereum zone and a NEO zone, and their users can exchange messages and transactions through the Cosmos platform.
But different networks use different consensus algorithms. So how to agree within a heterogeneous (heterogeneous) system? The Tendermint protocol serves this purpose. It is built in each zone and acts as a kind of equalizer. The trick of Tendermint is also that operations processed within off-line blockchains do not affect the general level of congestion. Operations between chains indeed use the resources of the whole system. Therefore, work is still underway to increase scalability.
In theory, Kwon and Bookman’s development is a ready-made solution for connecting disparate blockchains and an alternative to cryptocurrency exchanges. But there are two nuances:
- The platform only syncs with chains that use smart contracts;
- Interblockchain Communication is still operating in test mode.
Nevertheless, the project has generated interest in the community. Particularly among developers who liked the simple tool for creating new blockchains and synchronizing with third-party networks. In 2017, during the ICO, Tendermint managed to raise almost $17 million in 28 minutes. This money comes from the sale of 168 million internal tokens of the platform, dubbed ATOM. Let’s see what role they play and where to get them.
Cosmos (ATOM) Price history analysis
At the ICO stage, the token was worth about 10 cents. When the coin showed on the market (March 14, 2019), its price was $6. Two days later, the price jumped to 8.31, the all-time high to date. The rise stemmed from the initial interest in the new technological money, but fast went down.
In 2020, the price of ATOM was between $5 and $7.
The historical ATOM coin price has ranged from $1.68 at its lowest to $8 at its peak. In the course of the story, its meanwhile value has swung from $2 to $6.
Cosmos Price Prediction 2021
Cosmos remains stable, even as it comes to more customers and enlarges its program. According to forecasting and algorithmic analysis, Cosmos’ (ATOM) price prediction could be around $6.15 in 2021.
Will It Reach 30$?
Of course, the Cosmos (ATOM) price will reach 30$ when pigs fly but not on your life. Users found the following disadvantages:
- A quite volatile rate, and because of the low capitalization so far, price manipulation is possible. Rivalry from projects that are also looking for different ways to connect blockchains;
- Undemocratic scheme. Only those investors who hold the most ATOM tokens in their account have the right to become validators. It leads to a “race” in which investors will build up their capital more and more, and the top 100 wallets will end up with the grandest amounts;
- If you want to make full use of the Cosmos cryptocurrency’s functionality, you will need to connect lots of third-party projects to it. In turn, the success of the project will depend on the number of integrated applications.
Cosmos Price Prediction 2025
Value forecasting draws on a careful study of old currents and predicting those currents for an essentially indefinite future. However, with a company grasp of the available data and thoughtful analysis of ever-changing circumstances, it is possible to predict with a degree of accuracy.
Cosmos will continue to grow even as its services diversify and branch out across the crypto space. According to the forecast and algorithmic analysis, ATOM’s price could be around $29.9 in 2025.
Is Cosmos a pretty long-term investment?
The Transforming protocol implements so-called hybrid mining – an analog of PoS, adapted to the “task of Byzantine generals. There are 100 validators responsible for transaction processing and maintaining the network. They select among the users who own the highest number of internal tokens (ATOM). The validator is required to freeze its assets, and if he gets caught cheating, his tokens get destroyed.
It is not possible to mine coins in the usual sense. But you can:
- Become a validator and rewards for conducting transactions;
- Become a delegate, pledge your assets to a chosen validator and get interested in it. But this option is not particularly lucrative – monthly dividends are 0.5-0.6% of the pledge amount;
- At first, it was possible to store coins only on exchange accounts. Now ATOM holders can use Lunie web wallet and several Android and iOS applications (Cosmostation, Lunagram, Trust Wallet, Wentz, imToken). Another app, Cobo, is due out soon.
Despite the active development of the project (at least, the infrastructure associated with it), the market quotes of the altcoin grow weakly. The daily trading turnover looks very modest – about 60-70 million dollars.
The primary condition for the success of the project and the increase in the value of the token it promotes is dynamic growth in the number and activity of networks connected to Cosmos. Therefore, we should not expect a significant increase in the exchange rate in the next 1.5-2 years. Neither should we rush to add ATOM to our cryptocurrency portfolio. In conditions of slow development and successful competitors, the project can fail to justify the entrusted expectations.
However, some experts predict that the price may grow with the general market upturn in the summer. In this case, Cosmos cryptocurrency is a beneficial tool for playing short positions.