- Cosmos price has more than doubled in the past few weeks.
- This recovery is partly because of the growing ecosystem.
Cosmos price has been in a steady bullish trend recently as investors cheer the growth of its ecosystem. ATOM, its native token, rose to a high of $11.60 on Monday, which was the highest point since May 23rd of this year. It has risen by over 107% from its lowest point this year, bringing its total market cap to over $3.3 billion.
Cosmos growing ecosystem
Cosmos is a leading blockchain project that allows multiple parallel blockchains to interoperate while retaining their security properties. It addresses most challenges that most traditional blockchains like bitcoin face.
Cosmos is a network of many independent blockchains that are known as zones that are powered by Tendermint BFT technology. It is also powered by Cosmos Hub, which is a multi-asset proof-of-stake cryptocurrency that enables networks to adapt and upgrade.
Zones in Cosmos communicate using a technology known as inter-blockchain communication (IBC) technology. Through Cosmos, it is, therefore, possible to handle blockchain transactions across multiple networks.
Learn more about how to buy Cosmos.
Cosmos came to prominence because of Terra, which was once one of the biggest projects in its ecosystem. Terra was built on top of Cosmos’ ecosystem. As such, the collapse of Terra and its ecosystem had a PR challenge for Cosmos even though the network had no role in it.
Recently, ATOM price has done well because of its growing ecosystem. For example, dYdX, one of the biggest DEX has announced that it will migrate from Ethereum to Cosmos. Similarly, other networks like Cronos, ThorChain, and Osmosis have all used Cosmos to scale.
Cronos, formerly known as Crypto.com Coin, has over 73 DeFi tokens that have a combined total value locked (TVL) of over $1.25 billion.
Cosmos price forecast
The four-hour chart shows that the ATOM price has been in a strong bullish trend in the past few weeks. It has more than doubled from the lowest level this year. Along the way, Cosmos has risen above the 25-day and 50-day moving averages.
Cosmos has formed an ascending channel pattern that is shown in green while the Stochastic Oscillator has moved above the overbought level. Therefore, there is a likelihood that Cosmos price will likely continue rising as bulls target the upper side of the ascending channel at $12.30. A move above that resistance will see it rally to $15.