With tokens licking their wounds and healing from the unexpected bloodbath witnessed in May, some tokens haven’t exactly followed the “slow and steady” path to recovery. One such token is ATOM, and the token witnessed a huge spike in its price in the past 24 hours. The sudden spike accounted for a frantic yet rewarding couple of hours for the Cosmos blockchain.
Despite an impressive 24 hours for the token, can ATOM hold the walls of its fort and strengthen itself? Can one earthquake shatter its boundaries, leaving the token exposed all over again?
Let’s see what the metrics have to say…
At the time of writing, ATOM stood at $11.11 due to the token’s bull run on 20 May. The bulls ticked the prices upwards to $12 but the token eventually settled at $11.11. This positive price movement has been a huge relief for many in the Cosmos ecosystem, especially after the Terra collapse.
The volume of the token was also up by leaps and bounds since the 100% hike witnessed on 20 May. The volume stood at $545 million with a slight dip that followed the hike at the time of writing. Upon further observation, it was found that this is still 1/3rd of the volume at the peak of the crash. On 12 May, the volume on Cosmos tipped $1.59 billion which had been tipping ever since before the spike witnessed on 20 May.
The Terra crash is considered as one of the biggest crypto crashes to date with approximately $40 billion capitulation across the market. Many major cryptos were largely affected throughout the collapse and ATOM too, fell below $10. This was a very important price barrier for investors who have been very active on the network recently.
Furthermore, Cosmos founder, Ethan Buchman also pointed out that “Terra put Cosmos through the ringer” and how, eventually, the blockchain was able to get out of it mildly unaffected. One of the reasons for the strength of the network lies in the independence of the sovereign cosmos chains. “If one fails, others are unaffected,” said Buchman who went on to appreciate the security and resilience of the Cosmos.
The RSI of ATOM also signalled a period of consolidation for the token as its value dropped to 50. The value had spiked to 60 earlier on 20 May during the surge but came down to the neutral zone. Steady accumulation and transactions can, however, retrieve the bullish run-on Cosmos in the near future.
Cosmos looking to expand in the crypto universe?
Self-proclaimed “Cosmos airdrops specialist”, Thyborg recently tweeted about the latest upgrade on the Cosmos network. He believes “Interchain security will the most significant upgrade since IBC last year.” Thyborg also insists that post-implementation, new crypto projects will look to “at least consider” starting their Cosmos chains.
Thyborg then calls out Cosmos as the “world leader in interoperable smart contract blockchain”. The Interchain security will enable security measures for consumer chains to be secured by the Cosmos market cap. This will ensure much more safety for these chains at a time of increased scrutiny over blockchain security.
There is belief in the ecosystem that this upgrade will be a great addition to the Cosmos network. It is also said to have the bandwidth to serve home to new consumer chain projects on the Cosmos network.