Today’s price of ATOM is up 19%.
Cosmos is back to $30.
A sluggish Bitcoin does not always imply sluggish price action in the rest of the market.
Cosmos’ ATOM token has risen 19% in the last 24 hours, defying the lack of momentum seen in leading assets such as Bitcoin, Ethereum, and Binance Coin. According to CoinGecko data, it is currently trading at $31.04 after a relatively quiet week of market activity for the asset.
Cosmos has suffered in recent weeks in comparison to many other crypto assets. Since reaching an all-time high of $44.42 in September, it has consistently failed to break through resistance, while Avalanche, Solana, and Ethereum have set new highs.
Cosmos aspires to be the “Internet of blockchains.” It connects individual networks and provides chain interoperability via the IBC Protocol. Terra, THORChain, and Secret Network all use Cosmos’ own software development kit and can communicate via the IBC Protocol.
Cosmos is occasionally referred to as a Layer 0 network, but it is also discussed in conjunction with Layer 1 blockchains. This year has seen a boom in Layer 1 networks in the crypto market, owing to increased competition between Ethereum and other smart contract networks. The second-ranked blockchain, which is now the main hub for the emerging DeFi and NFT sectors, saw its ETH currency rally during the first half of the year, aided by the launch of a critical fee burning proposal known as EIP-1559. However, the rising value of ETH has increased the dollar value of Ethereum’s gas fees, allowing cheaper networks such as Avalanche and Solana to thrive. In recent months, the market has shifted between the various Layer 1 networks, though none have come close to surpassing Ethereum’s $545 billion market cap. It’s unclear whether this is the cause of Cosmos’ sudden rise, or whether it’s due to growing interest in its ecosystem of IBC-compatible networks.
Cosmos’ market cap is now around $8.7 billion following today’s rally. This places it as the market’s 26th largest cryptocurrency.