Cosmos (ATOM) is one of the most promising altcoins in the crypto industry, and the second-best performer in the last 24 hours, bested only by Arweave (AR) which grew by 28%, while Cosmos grew by 22.91%.
The coin’s price has seen quite a journey in 2021, going from a humble price of $6.4 in early January, all the way up to a new all-time high above $42. In between, it saw a meteoric rise, as well as a rapid price crash. It breached resistances and broken supports, and it still managed to come out on top.
So, let’s take a closer look at its price performance, any recent events that may have affected it, and finally, take a look at what is expected from the coin’s price down the road.
Cosmos price performance
As mentioned, the Cosmos (ATOM) price started the year at $6.4, which is where it remained with slight fluctuations for about two weeks. After that, however, it started seeing a strong rally, which was caused in part by the project’s own quality and demand, and partially by Bitcoin’s, larger rally. Before the third week of January was out, ATOM hit the price of $9.5, meaning that it went up by 50%.
What followed was a small correction to a support level at $7, and then another, much more powerful price surge that took ATOM all the way up to $26, making it one of the top performers at the time. After reaching this level in mid-February, Cosmos dropped to $17, which started acting as its major support from February to mid-May. However, its price did continue to go up, sometimes being rejected by smaller resistances, and sometimes managing to pass them and reach higher ones.
The coin made a record in mid-May, around the same time as Bitcoin did, when it hit $30. But, as pretty much everyone is now aware, this was a time when a massive bearish wave hit, causing most coins to have their value cut in half, while many others lost even more.
ATOM itself dropped back to $8, although it saw large fluctuations that saw it move between this support and a resistance at $16. This situation lasted until August 2021, and while the price was moving towards stability, the last growth in July simply did not stop when it reached previous resistances.
Instead, the price kept going up throughout August, and then September, even though it saw two seemingly major crashes, from which it, fortunately, managed to recover quickly. The last few days have even seen ATOM hit a new all-time high at $44.70, although the price did sink to $28 in a following correction.
Still, the drop was very brief, and three days later, ATOM managed to return to levels above $40. At the time of writing, September 23rd, it sits at $41.20 after growing by 25.20% in the last 24 hours.
Why did Cosmos grow so strongly?
As some may know, Cosmos is a project that aims to bring solutions to some of the hardest problems in the blockchain industry, such as slow speeds, expensive transactions, lack of scalability, environmental unfriendliness of PoW-based projects, and more.
It was described as blockchain 3.0, and thanks to its unique design, the network can easily be built using chunks of code that already exist, instead of having to do everything from scratch.
All of this earned it a nickname “the internet of blockchains,” as it basically functions as a network of parallel, independent blockchains that are highly secure, scalable, and focused on interoperability between the chains that make up its network.
This interoperability and the large world of possibilities that it offers make Cosmos one of the top performers, as interoperability, in general, is one of the most desirable traits of any blockchain network. In fact, many considered ATOM to be heavily undervalued, as its price before 2021 fluctuated between $5 and $7.5, while the project now revealed its true potential, which allows it to skyrocket to the height of $40 and more.
In fact, the fact that it is undervalued was also mentioned in a recent YouTube video by the Coin Bureau’s host, “Guy.” Guy said that the market is significantly undervaluing ATOM. He also highlighted the Cosmos network’s inter-blockchain communication (IBC) — a feature that went live earlier this year, in March.
The project also launched a cross-chain bridge and a wrapped version of Bitcoin on its network about a month ago. Meanwhile, it continues to work on finalizing its vision of making it easy for developers to create blockchains, break barriers between chains, and ensure the ease of transacting with one another seamlessly.
All blockchains would maintain sovereignty, while transaction processing would be quick, and communication between different chains enabled. This is meant to enable a number of different use cases that would make the network one of the most important projects out there.
Of course, Cosmos is not the only project focusing on interoperability, but Cosmos’ advanced and unique approach has pretty much cemented its position as the industry leader in this sector.
What will happen to Cosmos’ price in the future?
Of course, the main question now is whether or not ATOM can go even further this time around, or at all?
While this is pure speculation, we believe that it can. In fact, it is almost certain that it will. As mentioned, Cosmos is one of the most advanced projects when it comes to interoperability, and interoperability is one of the most important goals of the crypto industry.
The entire crypto industry is moving towards the next form of the internet — the so-called Web 3.0. This will be a decentralized internet, run on top of blockchain technology. However, this version of the web cannot run without the ability to switch between different projects’ ecosystems.
Right now, each network is isolated, existing as a separate website, but without the ability to go from one site to another. This is why projects like Cosmos are extremely important, and why it is bound to go big as it continues to present its solutions.
To learn more about this project visit our Investing in Cosmos guide.