The Cosmos network has been on fire in the last 24 hours. Is ATOM coming to eat Polkadot’s market share? Covered: Cosmos Price Action Update Cosmos or Polkadot? Just after several top traders seemed to have lost hope in the short term for the Cosmos network, the platform’s native token ATOM pulled a 180 on […] The post Cosmos Network Heats Up Despite Crypto Market Downturn appeared first on CryptosRus.

Cosmos Network Heats Up Despite Crypto Market Downturn

The Cosmos network has been on fire in the last 24 hours. Is ATOM coming to eat Polkadot’s market share?

Covered:

  • Cosmos Price Action Update
  • Cosmos or Polkadot?

Just after several top traders seemed to have lost hope in the short term for the Cosmos network, the platform’s native token ATOM pulled a 180 on the charts and now is grabbing the attention of influencers all over the crypto space.

Cosmos Price Action Update

ATOM went on a tear overnight. From its local low of $26 last night, the token has rebounded more than 20%, trading at $32.59 on the day.

The price appears to have returned to previous high time-frame (HTF) support from the beginning of this year and is being met with a nice push off these historic price levels.

On the daily chart, ATOM printed a 15% breakout candle, indicating that the crypto asset may be ready to start trending higher. Along with a strong impulse in volume, ATOM also appears to have broken out on the relative strength index (RSI), which measures the oversold and overbought conditions of any particular asset. 

Widely followed crypto traders have been taking note of the growing Cosmos ecosystem.

Cosmos or Polkadot?

Cosmos is a decentralized network of scalable, independent, and interoperable blockchains, similar to Polkadot. As the self-titled “Internet of Blockchains,” Cosmos aims to enable different blockchain networks to coexist and communicate with each other. 

These types of networks can be thought of as layer-0 (L0) platforms, as they aim to serve as the base “layer” of communication for all other layer-1 platforms like Ethereum, Solana, Cardano, etc.

The network is secured by network participants that stake their ATOM tokens to act as validators for the network. Tendermint Core, its proof-of-stake (PoS) governance mechanism, keeps the distributed network of nodes in sync. In order to become a validator node, a user has to stake ATOM. 

Polkadot is another interoperability platform and Cosmos’ largest L0 competitor. Its native token DOT currently outranks ATOM on the charts, boasting a $36 billion market cap compared to ATOM’s $9.2 billion. 

Despite DOT’s larger stage presence, an interesting chart I like to keep tabs on is the ATOM/DOT chart. This chart shows the performance of ATOM as compared to its largest competitor, and I think it can give us good insight into the state of ATOM’s value compared to its competition.

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As you can see from the chart, ATOM has been steadily grinding upwards against DOT in a parallel channel since the very beginning of 2021. While the chart can’t tell us which platform will end up taking more of the L0 market share, the trend is telling us that relative to Polkadot, the Cosmos platform could still be undervalued.

The post Cosmos Network Heats Up Despite Crypto Market Downturn appeared first on CryptosRus.