ATOM is a governance coin of a decentralized network of blockchains called Cosmos Hub. It is the brain of the Cosmos ecosystem which eases cross-chain interoperability and value transfer. The project introduces itself as “the Internet for blockchains.” It enables separate blockchains to communicate and transact with one another in a secure and simple way. There are 180 validators purely securing Cosmos by running consensus and 15 000 transactions per day. Over 249 interchain apps and services exist within the Cosmos ecosystem.
The article you’re going to read aims to provide a detailed ATOM review, exploring its history, technology, market performance, ATOM news and future prospects. We'll dive into details of the Cosmos ecosystem, explore the investment potential of the coin, and where to buy ATOM.
Background and Development
Origins
Cosmos was born from the idea of creating a connected universe of blockchains. It was a bunch of engineers who realized the potential in blockchain technology but at the same time limitations due to isolated networks. They set out to build a platform that would allow different blockchains to communicate and interact smoothly. It led to the development of Cosmos. ATOM, as the native coin, powers this vision.
Launched in 2017, the blockchain has seen major developments and important milestones:
- In 2017, the first whitepaper was published. It laid out the vision and technical roadmap for the project.
- In 2019, the Cosmos hub was launched. It was the first blockchain in the network.
- In 2020, it implemented the Inter-Blockchain Communication protocol. It validated fast and secure data and token transfers between different blockchains.
- Then in 2021, the Stargate upgrade was launched, increasing IBC capabilities and overall network performance. Also this year, ATOM price reached an all time high.
- In 2022, the blockchain released its 2.0 whitepaper. According to it, there were four innovations, such as liquid staking, interchain security, interchain scheduler, interchain allocator.
- In 2023, the ecosystem continues to grow with more blockchains and decentralized applications.
Finally, in 2024, Cosmos launches the Evmos upgrade, boosting transaction speed and scalability for the network.
Technical Overview
About Cosmos blockchain
As stated previously, the Cosmos itself has at its heart this one constructive chain of chains: that is the very same Cosmos Hub. It works as a bridge connecting various blockchains to communicate. It uses the Tendermint consensus mechanism, intended to replace Bitcoin's energy-intensive Proof-of-Work with a more efficient, and scalable Proof-of-Stake system; where users must stake their ATOM tokens in order to validate transactions/earn rewards.
Cosmos achieves this by the use of IBC protocol that makes it easier for individual blockchains to communicate with each other. It’s like a messaging system that helps blockchains to talk to each other and share information.
One important thing: Cosmos doesn't have smart contracts built into the core like Ethereum. So blockchains within the Cosmos ecosystem can embed smart contract functionality using frameworks provided by the Cosmos SDK. This gives developers flexibility to build applications and to customize them according to their goals.
Tokenomics of ATOM
Now, let’s pass the ATOM review. There will be many technical terms, so please be patient.
The initial supply of ATOM was 236.2 million tokens. Then the network of validators has received rewards, and the supply has grown to 390 million.
The annual supply of new ATOM coins is approximately 12.9%. However, this rate can vary. The system tries to maintain two-thirds of all ATOM staked to secure the network. If staking exceeds this limit, new token supply decreases. The minimum and maximum annual supply rates are 7% and 20%.
ATOM operates on an inflationary model with a capped total supply. While new tokens strengthen network security being rewarded for staking, a part of them is burned to avoid inflation. This mechanism creates balance and helps stabilize the coin's value.
Market Analysis
As of the 14th of August 2024, ATOM holds the 42nd position in the cryptocurrency market by market capitalization, totaling $1,931,584,953. It is currently trading at $4.94.
Looking back, the token reached its all-time high of $43.84 in September 2021, and it's lowest price was $1.68 in March 2020. ATOM price saw a major downfall in April 2022, when it decreased six times during two months. Since then, we see a stable period when the ATOM stock price balances between $13 and $4.5.
Recent Updates
The recent ATOM news says that Cosmos is having a big year.
Cosmos is exploring new technology called rollups. It improves the overall productivity and makes transactions cheaper. It's like handling small groups of transactions together instead of one by one. As a result, the speed of transactions has increased.
The network has reviewed its modular structure to adapt applications and developers. It has broken down the system into smaller, interchangeable parts. This makes it easier to create custom blockchains with specific features, like a LEGO set for blockchain builders.
Also, in 2024 Cosmos is actively working to bring developers from the Ethereum ecosystem to build on its platform.
And finally, lots of new projects have already joined the Cosmos family in 2024. For example, Evmos, an Ethereum Virtual Machine-compatible chain, Juno, a fast and user-friendly blockchain built on the Cosmos SDK. A perfect case is also Osmosis, a decentralized trading platform with over $10 000 000 daily volume.
In a previous post, I reviewed another cryptocurrency token from the same network, Osmosis.
Investment Perspective
The market of crypto is highly dynamic, and expert views can change rapidly. Meanwhile, we’d rather make a positive ATOM price prediction than a negative one. We see two reasons for it:
- Its strong emphasis on interoperability positions it well for the price. As cross-chain communication becomes more critical, ATOM could benefit a lot.
- Also, the extension of DeFi on Cosmos can double the demand for ATOM as guarantee of security and for governance, potentially boosting its value.
Cosmos, just like other blockchains, has problems with growth that need to be solved to succeed in the long run. Additionally, unstable laws around cryptocurrencies could represent some challenges. This confusion can affect the ATOM stock price and how widely it gets used.
Advantages and Challenges
ATOM offers several advantages. For example, coin holders can contribute to network security. They can stake their coins and earn rewards. Also, they can also participate in governance decisions, and this is how it works. It’s starting with suggesting a proposal, anyone of holders can do that. Then, all the ATOM holders vote on it. The more shares the holder has, the louder his vote is. If enough members agree, the new proposal will be accepted.
Additionally, the potential for ATOM stock price to increase exists due to its deflationary mechanics. The strong and active community surrounding Cosmos is another positive aspect.
However, investing in ATOM comes with challenges. The cryptocurrency market is known for its volatility, which directly impacts ATOM price. The competitive landscape, with other platforms aiming to achieve similar interoperability, poses risks. Moreover, the evolving regulatory environment for cryptocurrencies introduces uncertainty.
Security and Trustworthiness
ATOM does not have independent security features. It benefits from the security measures implemented at the blockchain level: Tendermint Consensus and Proof-of-Stake.
Tendermint Consensus ensures that all nodes in the network agree on the same state of the blockchain. This is how it works:
- A set of validators is chosen to participate in consensus. They stake their ATOM tokens to secure the network.
- A randomly selected validator proposes a new block of transactions.
- Validators vote on the proposed block in multiple rounds.
- They cast the votes on the block.
- If a block receives enough pre-votes, validators cast a final vote to commit to the block.
- If a block receives +2/3 votes from the validators, it is considered committed and added to the blockchain.
This algorithm makes the network operating even if some nodes are compromised.
Proof-of-Stake means that validators lock up their ATOM tokens to secure the network, creating a strong incentive to act honestly. If they try to cheat or attack the network, they risk losing their staked coins.
How to Buy and Store ATOM
Where to buy ATOM?
Selecting the right exchange is important for a smooth buying experience. We suggest looking for platforms that have good security measures, and provide a user-friendly interface. The best choice are centralized exchanges (CEX). Here are some popular options:
- Binance, one of the largest cryptocurrency exchanges globally. It offers a wide range of cryptocurrencies, including ATOM.
- Coinbase and Crypto.com. Those CEX are user-friendly platforms with a strong reputation, suitable for beginners.
Also, you can find ATOM on decentralized wallets:
- Atomic Wallet, supporting a wide range of crypto, including ATOM.
- Trust Wallet that includes a built-in browser allowing users to interact with dApps directly from the wallet.
- Keplr Wallet, designed specifically for the Cosmos blockchain.
Now you have the answer to where to buy ATOM. But don’t hurry to make your first deal. Always conduct your own research and ATOM review before choosing the time and an exchange. Consider factors like general market situation, fees, security features, and available trading pairs.
How to buy?
Most CEX require you to pass the KYC (know your client) procedure. You have to create an account and verify your identity: provide your personal information and documents like a government-issued ID.
After that, to buy ATOM, you'll need to deposit some money into your exchange account. Most platforms support various deposit methods, including bank transfers, credit/debit cards, etc.
Once your account is funded, you can search for ATOM and place a buy order. Exchanges usually offer different order types to suit your trading preferences.
After purchasing ATOM, we recommend transferring it to a hardware wallet like Ledger or Trezor. This provides an extra layer of security for your cryptocurrency holdings.
Future Outlook
The future of ATOM price depends on how well Cosmos does. Ifthere will be more Cosmos users, there might be more demand for ATOM.
But remember, the world of cryptocurrency can change quickly. Rules about crypto differ in the USA and Europe, and the price of ATOM can go up and down. It's important for Cosmos to keep up with these changes, conduct an annual ATOM review, and stay ahead of its competitors.
While ATOM price prediction looks promising, it's smart to be careful when investing. Make sure to learn as much as you can before putting your money in.
Summary
Our ATOM review reveals a cryptocurrency with the potential to be an important player in the blockchain world. The recent ATOM news, as we’ve outlined above, add to ATOM a strategic importance.
The Cosmos ecosystem's focus on scalability, security, and developer-friendly tools can further reiforce ATOM price. However, like any cryptocurrency, ATOM stock price is contingent upon various factors, including broader market trends, regulatory developments, and the overall adoption of blockchain technology.
What to read about ATOM?
We recommend the following sources:
- Official cosmos documentation is the main source of information about the network's technology and development.
- Subscribe on Cosmos Twitter, Reddit and Telegram to stay updated on the latest news, updates, and announcements.
- CoinGecko, CoinMarketCap, and Glassnode platforms provide a profound analysis of ATOM and how it fits in the crypto market.
- Use Cosmos Blockchain Explorer to get the actual data about blockchain activity and transaction data.
- To get more information, explore online courses and tutorials on blockchain technology, cryptocurrency, and investing. For example, on Udemy, on the Block or Binance.
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