Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Why Is ATOM On The Rise?

By Crypto BriefingCryptocurrencySep 23, 2022 02:24AM ET
www.investing.com/analysis/why-is-atom-on-the-rise-200630214
Why Is ATOM On The Rise?
By Crypto Briefing   |  Sep 23, 2022 02:24AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
BTC/USD
+0.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ATOM/USD
-2.29%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

ATOM has shown signs of strength since June while the rest of the market has floundered. The anticipation surrounding ATOM 2.0 may be revealed in four days' time, which may fuel prices.

Key Takeaways

  • Despite the broader market weakness, ATOM is still up 152% since the June lows.
  • The whitepaper for ATOM 2.0 is scheduled for release on the first day of Cosmoverse, on Sept. 26.
  • Cosmos community members believe ATOM 2.0 will revamp ATOM’s inflationary tokenomics.

The details for ATOM 2.0 will be revealed in four days during Cosmoverse. Community members expect the token’s inflationary monetary system to be substantially revised.

ATOM 2.0 on the Horizon

Big things are coming for the Cosmos ecosystem.

ATOM is currently trading at $14.7, up 10.3% on the day. While most major cryptocurrencies, including Bitcoin, are revisiting their summer lows, the Cosmos token is still up 152% since Jun. 19.

The coin’s strength in the face of the broader downturn may be due to rumors surrounding ATOM 2.0, the specifics of which will be publicized during an upcoming Cosmos conference. Cosmoverse will be held in Medellín, Colombia, from Sept. 26 to 28 and will feature Cosmos co-founder Ethan Buchman and Osmosis labs co-founder Sunny Aggarwal as speakers, among many others.

Details around ATOM 2.0 will be made public on the first day of the conference, with Buchman scheduled to unveil the token’s whitepaper at 14:30 UTC and Sommelier co-founder Zaki Manian to expand on the coin’s revamped tokenomics at 15:40 UTC in a talk entitled “$1K ATOM LFG.” A panel dedicated to ATOM 2.0 will also be held on the third day at 9:30 pm UTC.

Tokenomics

Cosmos is a decentralized network of independent blockchains, with ATOM as its leading token. Its Inter-Blockchain Communication protocol (IBC) enables users to hop from one blockchain to another seamlessly.

At the time of writing, there are 42 different IBC-connected blockchains, including the Cosmos Hub, decentralized exchange Osmos, smart-contract platform Juno, EVM-compatible chain Evmos, and privacy blockchain Secret Network. According to the Cosmos website, the network’s cumulative market capitalization currently stands at $9.72 billion, slightly below Solana’s $11.4 billion.

The ATOM token is used to secure the Cosmos Hub. Not to be confused with the broader Cosmos ecosystem, the Cosmos Hub is a blockchain specifically designed to connect all the other blockchains in the network.

The Keplr dashboard indicates ATOM staking rewards currently sit between 15.19% and 18.99%, depending on the validator one delegates to; the yield is constituted of ATOM emissions and Cosmos Hub transaction fees.

However, ATOM has received criticism for its inflationary tokenomics. The coin’s inflation rate is conditional on ATOM staking percentages. According to Messari, if more than two-thirds of the supply is staked, the inflation rate gradually decreases until it hits 7%; less than two-thirds, and ATOM can reach up to 20% annual inflation.

By comparison, Ethereum’s inflation rate is currently at 0.19%; even before the blockchain’s upgrade to Proof-of-Stake, its token supply increased by about 4.62% yearly.

Prominent Cosmos community members have speculated that ATOM 2.0 will fix the coin’s inflation rate by introducing a burning mechanism or a hard cap to the coin’s total supply. Another positive development for ATOM is the forthcoming launch of Interchain Security, which will put the Cosmos Hub in charge of securing the entire IBC network, not just the Hub itself. Stakers will also begin receiving rewards from other IBC blockchains, depending on the validator set they chose. Interchain Security is set to launch in January 2023.

Original Post

Why Is ATOM On The Rise?
 

Related Articles

Tim Knight
The Precipice By Tim Knight - Sep 28, 2022 1

The crypto market is TEETERING and Bitcoin are right on the precipice, and it wants to fall. I can see it. It just needs one……..more……………..push…………………and everything else will...

Why Is ATOM On The Rise?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email