Connect with us

Altcoins

Reasons why Cosmos’ ‘universal’ plans may be obstructed by ATOM

Published

on

Source: Unsplash


Cosmos, on 26 September, launched a new whitepaper that outlined the next steps for the blockchain and its native token ATOM.

The whitepaper includes plans for ATOM and how the protocol will be delving into making changes upon their liquidity staking, interchain security ,and governance protocols.

Major changes ahead 

According to the whitepaper, Cosmos plans to transition to its next phase and is expected to become an infrastructure service platform. The blockchain also aims to focus on interchain security which means that other chains will also be able to use the Cosmos technology to secure their own networks.

Cosmos further plans to make changes to its liquid staking protocol, where only a constant amount of ATOM will be issued per month. Governance will also undergo a transformation and a governing body called Cosmos Assembly would be formed. 

The assembly will overseeing the execution of the whole transition and ensure that the Cosmos team achieves its yearly goals. With the upcoming change in Cosmos’ vision and a transformation of the identity, developers have a lot of work set ahead of them.

As can be seen from the image below, there has been a massive spike in ATOM’s development activity. It appears that the development team has already begun work on implementing the changes mentioned in the whitepaper.

Source: Santiment

The Cosmos hype is real… guess not?

The whitepaper’s hype has spread to social media. In the past month, ATOM’s social media presence has grown tremendously. Furthermore, the alt’s social mentions have grown by 46.2% and social engagements, too have increased by 70.5%. 

However, there seems to be a decline in the sentiment for ATOM since the past week. The weighted sentiment for ATOM stood below 0 in the past few days, indicating that the crypto community has more negative things to say about ATOM. 

This could be a concern for potential investors as too much negative sentiment can have an adverse effect on ATOM’s prices.

Source: Santiment

However, the decline in  social media sentiment hasn’t affected ATOM’s growth. ATOM’s circulating marketcap  witnessed a surge in the last 30 days and went on to surge by 24.28%. Furthermore, its trading volume plunged as well and appreciated by 13.48% over the past month.

Source: Messari

Atom’s price on the other hand, despite showing some growth over the past month, began to fall.

The price impact

ATOM’s price appreciated by 23.90% over the past month, however its price began to fall since the 18 September. At press time, the ATOM token was trading at $13.05 after witnessing a 7% drop in the last 24 hours.

The Relative Strength Index (RSI) crossed over to the lower side of 50 indicating that the momentum was with the sellers. However, the Chaikin Money Flow (CMF) stood at -0.09 indicating a strong pressure to sell ATOM. 

Source: TradingView

 

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.