During the last 24 hours, ATOM the original token of Cosmos interoperable blockchain was on the roller coaster. Cointelegraph Markets Pro data indicates that ATOM’s price was 180%, from $8.87 on July 20 to $24.77 on August 22. In contrast, its 24-hour volumes were rising from $250 million on average to $1.87 billion.
The ATOM/USD exchange rate has increased in the interest of traders on decentralized unicorn finances. Previously, Cosmos has accumulated several successful DeFi initiatives like the Band Protocol, Kava, Terra and THORChain.
But the recent ATOM price rise was not so much about Cosmos as a blockchain initiative. Instead, the buzz that has remained around the DeFi sector over the past three months followed. So it seems that over the preceding 48 hours, no incident might have pushed the ATOM price up.
This left the token under speculators’ influence, especially since other major tokens, like Bitcoin, recorded significant intraday losses on Sunday. It thus seems that prominent traders have chosen to hedge themselves into ATOM, which causes a short-term upward surge.
Cosmos is more likely to get attention because of the growing DeFi sector of Ethereum. Despite similarities, Cosmos projects have lower market capitalization than those listed in Ethereum. Traders may thus underestimate the tokens of these initiatives.
Three reasons why ATOM’s performance was strong during the last month:
- The release into the network of Decentralized Financial Protocols.
- The start of a side chain that will allow the exchange of assets between Cosmos and Ethereum.
- The plan regarding release to bring Bitcoin (BTC) to the Cosmos ecosystem.
This integration will enable BTC to be utilized in the Cosmos DeFi ecosystem and provide the network with deep liquidity and enhanced usefulness.