Connect with us
Active Currencies 14284
Market Cap $2,526,813,413,354.10
Bitcoin Share 51.72%
24h Market Cap Change $0.50

Polkadot vs Cosmos: Neck-to-neck, but one shows more potential

2min Read

Token Unlock’s latest tweet highlighted key differences between Polkadot and Cosmos’s approaches related to blockchain interoperability. 

Polkadot vs Cosmos: Neck-to-neck, but one shows more potential

Share this article

  • ATOM and DOT were witnessing a price correction at press time. 
  • Both blockchain technologies showed immense future growth potential. 

Cosmos [ATOM] and Polkadot [DOT] bring together blockchains, facilitating effortless transfers of data and assets. On one hand, Cosmos allows developers to build appchains and bridges between blockchains, while Polkadot uses a sharded multi-chain model, connecting independent parachains within its ecosystem.


Read Polkadot’s [DOT] Price Prediction 2023-24


Token Unlocks, in a recent Twitter thread, pointed out the similarities and differences between the two blockchains approaches to interoperability.

While they had their unique approaches, adding value to their ecosystems, investors might have to look for more to make informed decisions. 

Token Unlocks’ tweet mentioned that Polkadot’s shared multichain architecture allows for shared security among parachains. Moreover, Polkadot recently launched a security feature termed PolkaSafe.

PolkaSafe allows multiple parties to collectively manage and control assets in a secure and organized manner within the Polkadot ecosystem.

To the contrary, Cosmos utilizes the Tendermint consensus algorithm to achieve fast block confirmations and high throughput. Apart from this, both blockchains also offer flourishing DeFi and NFT ecosystems, adding to their overall value. 

Which direction should investors go?

In terms of blockchain capabilities and growth potential, both ATOM and DOT were in neck-to-neck competition. However, investors must check both blockchains’ native tokens’ price action to understand which bag they should put their money in.

The bearish market condition has restricted both tokens from lifting their values in the recent past. To add to the misery, both tokens also witnessed a major price correction over the last few hours, like most cryptos.

According to CoinMarketCap, DOT’s price plunged by over 10% in the last seven days and was trading at $4.47. ATOM also displayed a similar price movement, as its value sank by nearly 10% last week.

At the time of writing, it was trading at $7.54 with a market cap of over $2 billion. The declining price action also caused negative sentiment around both tokens to spike quite a few times in the last 30 days. 

Source: Santiment


Is your portfolio green? Check out the Cosmos Profit Calculator   


However, there was good news. Over the last few hours, both tokens recovered slightly, as their hourly charts were green. Additionally, both DOT and ATOM’s Binance funding rates were red.

Generally, prices move in a different direction than funding rates. Therefore, the chances of a trend reversal remained high for both in the coming days.

Share

Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.