Altcoin
Cosmos [ATOM]: Is it the right time to short? Analyzing…
- 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.
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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.
#Cosmos is expanding ⚛️
2023 presents developers even more options to build in the #Interchain
The @BuildersProgram offers the structured support and ecosystem navigation needed for new chains to enter Cosmos
Q2 applications are still open, apply here: https://t.co/I343L62Dnt https://t.co/CcYfexgj64
— Cosmos – Internet of Blockchains ⚛️ (@cosmos) February 22, 2023
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.
