Amid a still bearish cryptocurrency market, the price of Cosmos (ATOM) increased by 20% this week, surpassing $13 USD per unit.
Excluding stablecoins, most cryptocurrencies on the market did not see significant price changes this week. Bitcoin (BTC) and Ethereum (ETH), the largest by market cap, respectively show a drop of 1,54% and an increase of 5,6% over the past 7 days. Prices of other crypto assets such as BNB, XRP, SOL, SHIB, and AVAX have also remained almost static, with slight variations up or down, according to data from CoinMarketCap at the time of writing.
However, a small group of cryptocurrencies, including ATOM, native to the Cosmos ecosystem, have gained further traction this week, appreciating significantly. At press time, Cosmos (ATOM) is showing a weekly increase in value of 20,6%, trading at around $12,9 USD per token.
This cryptocurrency is currently positioned as the big winner in the crypto market in the last week.
Source: CoinMarketCap
ATOM price rose to $13,2 USD on Sunday, peaking at nearly 24% weekly growth. ATOM's trading volume has also grown by 11,5% over the past 24 hours and its market cap shows an increase of 3% over the same period. But What is driving ATOM's price in the market? Let's see.
What is driving the price of ATOM?
Although there does not seem to be a clear reason to justify the increase in ATOM prices in the last week, possibly the proximity of the Cosmoverse 2022 be one of them.
The Cosmos crypto community is gearing up for Cosmoverse, an event taking place in Medellin, Colombia this month that will bring together the entire community of Cosmos developers, creators, builders, and users. Cosmoverse is a conference dedicated to fostering education and knowledge about the interoperable Cosmos ecosystem, in order to further drive its development and expansion through new projects.
On the other hand, the asset management company Vaneck published a rather interesting report in mid-August. Optimistic about the Cosmos ecosystem, praising its interoperability and blockchain bridging solutions. Vaneck predicted that by 2030, there will be some 5.000 blockchains in Cosmos’ interoperable ecosystem and that the price of ATOM could exceed $140 USD or more by then.
Furthermore, the active community of Cosmos and its constant development They are also factors that influence the movements that the cryptocurrency has had in the market.
What is Cosmos?
Cosmos is a decentralized ecosystem focused on blockchain interoperability.
It is a blockchain network that has an infrastructure that facilitates the connection and communication of multiple blockchains. Thus, several of the largest and most important blockchains in the crypto ecosystem, such as Bitcoin, Ethereum, Polkadot and EOS, among others, can connect to Cosmos thanks to its infrastructure and its Cosmos IBC (Inter Blockchain Communication) messaging protocol, which allows communication and exchange of real data between multiple blockchains.
The Cosmos ecosystem also allows its developers to easily create or deploy decentralized applications (DApps) and other protocols on the network, which will also be interoperable with each other.
Due to its enormous potential, Cosmos is known in the crypto world as “the Internet of Blockchains”.
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