We continue to await for Bitcoin to break beneath $18,000. While the beginning and middle of October will be challenging for crypto investors, there will be a trending move up into year-end. If we see gold and stocks slide lower, BTC will have no choice but to follow them. Should we see a break of $18,000 we will enter a period of maximum pain in the crypto market.
Another network that has the potential to perform exceptionally well over the next few years is Cosmos ATOM. Cosmos has an extensive developer base and offers a unique value proposition to the crypto sector. Unlike other blockchains, Atom is a network of networks and provides the underlying technology and security for developers to build their own sovereign blockchains. ATOM’s best feature is cross-chain security and interoperability.
Bridge networks play a critical role in decentralized finance and yield farming services, and are primarily built off of Ethereum. Even though the Ethereum blockchain is highly secure, applications built on top of it are susceptible to hacks. A poignant example of this can be seen with the infamous Ronin Bridge hack, which led users of the Axie Infinity a game-fi platform to lose $620 million dollars. When compared to Ethereum, Cosmos has seen fewer of these issues, and in Q1 of 2023, the Cosmos team plans on bolstering interchain security.
On top of these strong fundamentals, Cosmos also provides an aggressive APY for ATOM which is currently at 9.7%. Furthermore, blockchains and projects built off of Cosmos typically distribute their projects through free airdrops to bootstrap a community of supporters. Many of these airdrops built off of Cosmos have gone on to deliver spectacular returns in their own right. With disruptive technology, a strong community of developers, and a unique value proposition for investors, ATOM is an altcoin that we believe could be a major player in interchain security.
Currently sitting at $12, ATOM’s all-time high was $40. Due to Cosmos’s 10% inflation rate, staking your coins is a necessity to avoid feeling the pain of increased pressure on price. If you are looking to be an active participant in the crypto space, and are willing to research airdrop opportunities and stake your coins, then ATOM could be a terrific opportunity.