Cosmos (ATOM/USD) price jumped sharply on Monday as investors priced in more demand for its ecosystem. ATOM, its native token, is trading at $33, which is the highest it has been since November 15. It has risen by more than 30% from its lowest level this month.
ATOM growth continues
Cosmos is one of the fastest-growing blockchains that is powered by Inter-Blockchain Communication (IBC) technology. The network enables other decentralized platforms to communicate with one another.
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Today, many blockchain projects have moved to the network. Precisely, there are now more than 260 applications in the ecosystem. These networks have more than $160 billion in assets under management.
Some of the tokens that have shifted to the Cosmos ecosystem are Binance Coin, Crypto.com Coin, Terra, ThorChain, Osmosis, and Secret among others.
The most recent entrant to the ecosystem is ZCash, the fast-growing privacy-centred coin. By moving to Cosmos, ZCash will see better speeds and more cross-chain interoperability. Other cryptocurrencies that have moved to Cosmos are Terra and Forte.
All activities in the Cosmos ecosystem are guarded by ATOM, its native token. ATOM helps to secure the network through its governance.
Holders of the token can also vote about the future of the network. Most importantly, they can stake the coin and earn rewards. The typical APY for ATOM is about 9.7%. These rewards are distributed to holders from transaction fees and from the newly created ATOMs.
Cosmos price prediction
The daily chart shows that the ATOM price has been in a strong bullish trend in the past few months. Indeed, its price rose by more than 480% between mid-July and September. Recently, however, this bullish momentum has faded and the coin has moved sideways.
Just last week, the Cosmos price dropped to the lowest level since September 11. This happened after the price managed to move below the important support level at $32.72, which was the previous all-time high. The coin is currently trading along this level.
However, a closer look shows that the ATOM price formed a double-top pattern at around $44.25 while $32.72 was its chin. Therefore, there is a likelihood that this jump is a dead cat bounce and that the price will resume the downward trend in the coming weeks.
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