Cosmos (ATOM) Skyrockets 12% Following Bitcoin And Ethereum Recovery
The crypto market is showing signs of recovery, and it seems Cosmos has also been pulled in the same direction with an increase of 12% in the last 24 hours.
Cosmos (ATOM), the 27th biggest cryptocurrency, has a total market cap of $3.2 billion. ATOM, the token that fuels the Cosmos blockchain network, has been gaining a lot of traction with an increase of over 12.7% overnight.
Currently, ATOM is trading at the price point of $11.45.
Suggested Reading | Avalanche Crumbles More Than 16% As Crypto Landslide Continues
ATOM Remains In Bear Territory
Even though the charts have been looking bullish, ATOM is still at a bearish stance with trades that plummeted by 74% compared to its all-time high record of $44.70 in September 2021.
There has been a noticeable spike in ATOM’s trading volume that is evident in multiple exchanges. The total trading volume is at roughly $327 million in the past 24 hours, which is up by 11% in comparison to the previous day.
What Is Cosmos?
Cosmos refers to a decentralized network of blockchains that runs using the power of Byzantine Fault Tolerance (BFT) algorithms.
More so, Cosmos also enables developers to create and innovate their own blockchains plus allows Blockchains that run on Cosmos to freely interact or engage with one another.
Some of the major blockchains that run in the Cosmos are the Terra, Kadena, and Thorchain.
Developer Incentives Following Terra’s Demise
Injective, a decentralized blockchain that is focused on the development of decentralized Finance (DeFi) applications, has designed a proposal to create incentives for developers who were negatively impacted by the downfall of Terra.
Injective is also responsible for the adaptation of the Ethereum compatibility and bringing it to the Cosmos IBC ecosystem which has immensely helped Terra developers to build applications fast with the aid of familiar tools.
ATOM total market cap at $3.16 billion on the weekend chart | Source: TradingView.com
The Injective proposal was created on May 12 following the downfall of Terra at which developers started to look for opportunities to build projects elsewhere. The proposal was passed with a convincing 99% agreement with the initiative in a matter of four days.
The entire injective community was in unison when they decided to redirect the incentives just to make sure that Terra dApps will have enough resources to facilitate a smooth transition into joining Injective.
Further, CosmWasm, Injective’s up-and-coming smart contract layer is seen to power up Terra projects to enable speedy onboarding without the need to rewrite codes which could happen if they decided to transfer to other blockchains.
Suggested Reading | Ripple (XRP) Struggles To Breach $0.45 Level, Down 16% In Last 7 Days
Cosmos Network Performing Well
There are nearly 50 tokens and 28 InterBlockchain Communication (IBC)-enabled blockchains that are running in the Cosmos.
More so, there are also around 265 services and apps that power up the Cosmos ecosystem comprising wallets, blockchains, and explorers.
Kadena TVL was up by 18% or $7.2 million in just 24 hours. TVL of Cronos soared by 2.16% or $2.32 billion in the past 24 hours.
Tokens in the cosmos plus DeFi activities have been performing extremely well.
Meanwhile, the king of crypto have improved in-market performance. Bitcoin is up by 4% in a matter of 24 hours and is now trading at $30,187.
Ethereum has also increased by 4.4% overnight with a current TVL of $2,026.
Featured image from Zipmex, chart from TradingView.com