Cosmos Hub’s V2 proposal fails to light fireworks for ATOM as…
How is success measured? Well, different platforms have different measures in place. As far as Cosmos ($ATOM) is concerned though, “success will depend on the changes made to $ATOM and whether that can attract more projects to build.” Ergo, the question – Is that the case?
Here’s AMBCrypto’s Price Prediction for ATOM for 2023-24
Rising above it all
The recent Cosmoverse event promised new developments, including interchain security and other significant updates. In fact, at the Cosmoverse conference in Medellin, Colombia, the new COSMOS 2.0 whitepaper was released too. It also incorporated changes to ATOM’s utility and issuance schedule.
Messari recently released a deep analysis, one that looked at the latest developments in the Cosmos ecosystem mixed with their respective implications.
For starters, Cosmos’s toolkit enabled to build a unique network of interoperable app-chains and Proof-of-Stake (PoS) networks. Despite the amount of fees paid on the protocol, Cosmos Hub and ATOM holders saw very little revenue.
To counter the stated issue, V2’s whitepaper proposed four main components. These were – Reissuing ATOM 2.0, Interchain Security and Liquid Staking, Interchain Scheduler and Allocator, and Cosmos Assembly.
Let’s look at the first option, for instance. The reissuing of ATOM 2.0 started with the introduction of liquid staking and eliminating the 21-day lock-up. This allowed stakers to increase security while improving liquidity. In addition, ATOM 2.0 would move to a new issuance schedule, making it deflationary.
Those were different amendments made to the existing network. But, were they any good?
Any reason to fall?
ATOM has been falling like asteroids of late. At the time of writing, however, ATOM’s price did see some relief as it traded around the $13.10-mark. Even so, the crypto still failed to overcome its corrections of the past.
Additionally, on-chain metrics such as trading volume and development activity narrated a rather ‘stagnant’ or even a declining trajectory, as evident in the chart below.
Needless to say, ATOM needs to showcase the same enthusiasm that was in-line with different developments around this space. Surprisingly, despite the hard work done, the development activity metric couldn’t really lift the overall mood of the market.
Only time will tell whether any of these updates will have an impact on ATOM or not.