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Cosmos [ATOM]: Is it the right time to short? Analyzing…

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Cosmos [ATOM]: Is it the right time to short? Analyzing...

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  • Cosmos Hub witnessed a decline in staking activity.
  • However, development activity increased as Cosmos provided incentives.

Cosmos Hub lost stakers on its network over the last week. However, with Cosmos [ATOM] increasing its focus on development activity, it could regain the interest of stakers and bring them back to the network.

Is your portfolio green? Check out the Cosmos Profit Calculator

According to Token Terminal, Cosmos has ranked second in terms of the number of active developers. Despite the milestone, the network continued to incentivize developers as of 22 February.

The spike in active developers and the efforts to hire more could be due to Cosmos Hubs’ upcoming technologies. These technologies could be related to “Replicated Security,” which is the upcoming shared security model of the Cosmos Hub.

However, regardless of these spikes, stakers remained uninterested in the protocol. According to Staking Rewards, the number of stakers on the network declined by 3.24% over the last month and stood at 720,014 at press time.

Source: Staking Rewards

Regardless of the number of stakers, the price of Cosmos’ token, ATOM, surged over the past week. Even then, the overall volume of the token declined at press time. According to Santiment’s data, the overall volume of the ATOM token decreased from 515 million to 131.27 million in the last month.

Source: Santiment

This could be one reason why traders held more short positions against ATOM. According to Coinglass’ data, the number of short positions against ATOM increased over the last 30 days. At press time, 51.16% of traders had taken short positions against ATOM.

Source: coinglass

Additionally, the network’s market cap dominance fell by 3.06% in the last seven days, according to Messari. This implied that even though ATOM’s price increased, other cryptocurrencies in the market outperformed its price activity.

How much are 1,10,100 ATOMs worth today?

For ATOM’s prices to continue growing, more investors would need to buy the token. However, as ATOM’s volatility rose, risk-averse investors could shy away from buying it. This could negatively impact ATOM’s potential for growth.

Source: Messari

Only time will tell whether Cosmos Hub‘s efforts to increase developer activity will prove fruitful in the long run.


Saman is a News Editor at AMBCrypto. Her background in History and English expanded on her knack for editing and presenting all sides of a story without bias. With a strong will to learn, Saman is always up for exploring unknown territory, and crypto, with its ever-changing landscape, offers just that.
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