Opportunity Seekers Think Cosmos (ATOM) might Skyrocket in 2022, and Here is Why

The cryptocurrency industry is full of possibilities, with plenty of opportunities to be found if you know where to look. According to many experts, one such possibility might be Cosmos (ATOM), a project that aims to solve some of the blockchain industry’s “hardest problems,” by offering an advanced network that works as an antidote to slow, unscalable, expensive, and environmentally harmful projects based on the proof-of-work protocol.

The project has already seen quite a price surge in 2021, going from $6.4 in January of this year to $44.7 on September 24th. Since then, the coin’s price was cut in half, and it currently sits at $21.5, which is just above its new bottom. However, many believe that multiple positive developments that have happened already or are about to happen in the near future will launch the ATOM price back up.

With that said, here are some of the top reasons why experts are betting that Cosmos' (ATOM) price will skyrocket in 2022.

1) Charts are showing a bullish buildup

Technical analysis has always been one of the most commonly-used tools for making price predictions, and the reason for that is that they typically work quite well. The crypto industry follows patterns, and ATOM’s have been showing the so-called “bull flag” at the start of the month.

The same pattern was previously followed by Avalanche (AVAX), which then broke out, and so similar behavior is also expected from ATOM in due time. Of course, this alone is not a definitive signal that ATOM will see a price increase. As new events unfold, they can impact the prices and patterns of coins, rendering them useless.

However, it is a strong indication that Cosmos has the potential to go up, provided that the market circumstances allow it, which is a positive sign and one of the reasons why we believe that it might happen.

2) More than half of its supply is staked

Another reason to expect a Cosmos price surge comes from the fact that 64% of the coin’s supply is staked, which means that the circulating supply is seeing scarcity that could play a major role. Staking, of course, allows users to earn passive income in exchange for supporting the project.

As of early December, the data was showing that Cosmos investors have staked more than 180 million ATOM tokens in order to become the network’s validators, which grants them the mentioned rewards that serve as passive income. The rising number of staked tokens has pushed the price earlier, when it reached its current all-time high, so there is no reason for it to not happen again, especially since the number of staked cryptos continues to grow.

3) The launch of Emeris

Cosmos, like many other crypto projects, is big on decentralized finance (DeFi) — a major crypto trend that blew up in 2020, and it continues to grow steadily to this day. DeFi has revolutionized the crypto industry by making decentralized banking not only possible but easy and available for everyone with a smartphone and an internet connection.

Of course, since it is in its early days, DeFi is still a bit rough around the edges, and so Cosmos’ launch of Emeris — the first functional user interface for DeFi within the project’s ecosystem — has certainly brought attention to the project. Cosmos’ DeFi sector has received some significantly expanded capabilities, and ATOM became a great buy.

While this did happen a few months ago, the situation has not changed, and the interface continues to facilitate access to a range of DeFi protocols, many of which are cross-chain, which lead us to our next segment:

4) The arrival of the Gravity Bridge Chain

Last week, on December 10th, Cosmos published a blog post announcing the arrival of the Gravity Bridge Chain, which is essentially an open and interoperable bridge that connects Cosmos with Ethereum. This has been a long-anticipated shared vision that would bring together projects, teams, dApps, various protocols, and more.

The idea of connected chains, or Interchain, has been one of the biggest obsessions of the blockchain industry for years now, and a crucial component of the future version of the internet — Web 3.0.

In this upcoming interoperable system, Cosmos sees Gravity Bridge’s place as a “foundational piece of infrastructure available to all Cosmos chains openly, purpose-built to update and iterate quickly, and facilitate the bridge needs of the chains that interact with it.” The initiative will bring open markets, frictionless trading, and unlocked liquidity for everyone in equal measure, which is what the future of crypto trading is imagined to be like.

Interestingly, the project’s ATOM token wasn’t exactly built to be used as part of the Gravity Bridge Chain, and instead, another token called Graviton (GRAV) will be used. However, as part of the Cosmos ecosystem, the Gravity Bridge Chain could still have a positive impact on the ATOM coins.

5) The arrival of interBTC to Cosmos ecosystem

Finally, the last reason for ATOM’s past, and potentially future bullish momentum comes from the Interchain Foundation (IFC). Some time ago, the team made an announcement regarding its contribution to the Interlay Development Fund in order to bring wrapped Bitcoin to Cosmos’ ecosystem, and allow Bitcoin users to mint it and use Cosmos’ products.

Interlay is using a lock and hold technology that lets users secure their BTC coins and not have to worry about their safety. The interBTC tokens that they get in return are just as safe and just as valuable as the BTC that got locked away. So, while Bitcoin itself cannot have protocols and products of decentralized finance, there are still ways for it to participate in DeFi, and not just on Ethereum’s network, but also on all other ones that decide to introduce its wrapped version.

And, of course, given Bitcoin’s reputation and dominance over the market, a move like this is bound to have lasting consequences on any network that welcomes the coin, including Cosmos and its native token, ATOM.

Conclusion

Cosmos (ATOM) is an impressive project in its own right, but there have been plenty of developments that have pushed it under the spotlight in recent months. While the project is still being impacted by the behavior of the broader crypto market, there is a lot that can be expected from it due to all the positive developments that it has seen recently.

Similar developments impacted it when it reached its all-time high, and while its price did see a correction since then, there are still many new reasons for Cosmos to recover, and then potentially even skyrocket to entirely new heights.

To learn more visit our Investing in Cosmos guide.