Cosmos ATOM Attempts a Recovery to Mimic the Market Trend
Published1 year ago
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The crypto market attempted to slightly recover yesterday, with Bitcoin pushing above $30,000. Following this price action, many cryptocurrencies also attempted to make the uptrend, but the market has witnessed another dip in value, with prices going to previous lows.
Cosmos (ATOM) was among the tokens that made the slight uptrend yesterday. The token gained by around 12% during the past 24 hours after benefiting from the price action created by Bitcoin and Ethereum.
Cosmos makes slight gains as the crypto market rebounds
Despite the bullish action created by ATOM, the token is still down by around 75% from its all-time high of $44.45 created in September last year. However, such performance is not unique to ATOM, as other tokens are still way below their ATH.
On May 20, ATOM witnessed a notable increase in the coin’s trading volumes across different exchanges. The total trading volumes for the token currently stand at around $327 million during the past 24 hours. This is an 11% growth compared to the previous trading day.
Cosmos is a decentralized network that comprises independent parallel blockchains like the Byzantine Fault Tolerance (BFT) consensus algorithm. The network enables developers to create their own blockchain networks. Blockchains within the Cosmos network can interact, creating a unified process that records notable growth.
Some of the leading blockchains within the Cosmos network include Kadena and ThorChain. Terra was also within the Cosmos network before it collapsed two weeks ago, causing losses to investors who purchased LUNA and UST.
The Cosmos network is one of the largest ones in the crypto sector. The network comprises 49 tokens within the Cosmos ecosystem, and it has 28 InterBlockchain Communication (IBC) enabled blockchains that have also been deployed.
The Cosmos network has witnessed gradual growth over the years. It continues to attract new products because of its multi-chain capabilities. The network comprises 265 applications and services, including wallets, blockchains and explores, according to the data provided by Cosmos.
The largest protocol within the Cosmos ecosystem is Cronos. Cronos has a total value locked of around $2.3 billion, according to data from DeFiLlama. The TVL increases in correlation to the value of the Cronos token. Kadena has a TVL of $7.2 million, according to DeFiLlama.
Growth in the DeFi activity within the Cosmos ecosystem triggers gains for then network-based tokens. Yesterday, these tokens were also on the rise, as they replicated the double-digit gains made by Cosmos.
At the time of writing, ATOM was trading at $11.17 after recording a 2.4% decline in 24 hours, according to data from CoinGecko.
The Crypto market is still red
The collapse of the Terra protocol has been attributed to the reddish flag being displayed across the market since last week. The collapse of the network triggered market anxiety as traders grew wary of regulations. However, the market is showing slight signs of recovery, but bears have not been overcome.
Bitcoin and Ether have also witnessed slight dips during the past 24 hours. Bitcoin has dropped by 2.46% during the past 24 hours, while Ether has dipped by 2.18%. The entire cryptocurrency market cap has also declined slightly following the recession happening in the space.
Most tokens are still over 50% below their all-time highs, and dip-buying has failed to save the prices of these assets. However, the crypto market is not the only asset class recording dips because the stock market has also tanked significantly during the past few months.
To learn more visit our How to Buy Cosmos guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.