What is Cosmos (ATOM)?
Cosmos (ATOM) is a cryptocurrency that enables an ecosystem of blockchains that can interact with one another in a decentralised manner. Some of the most prominent blockchains using this ecosystem include Thorchain (RUNE), KuCoin (KCS), Binance (BNB) and Crypto.com (CRO). Cosmos, or ATOM, was not developed as a coin, but as a token. Users can stake their ATOM tokens to secure the network and earn additional ATOMs as a reward. Currently, there are 286,370,297 ATOM tokens in circulation.
Like other cryptocurrencies, the price or exchange rate of the Cosmos token depends on various factors. Apart from economic developments and the general state of the crypto market, supply and demand determine the ATOM price on cryptocurrency exchanges.
Cosmos (ATOM) price: Milestones and key events
Since the launch of the Cosmos (ATOM) token, its price has adjusted to the fluctuations in the crypto market and it has exhibited volatility. In March 2020, the ATOM price reached its all-time low at 1.16 USD. Two years later, in January 2022, the Cosmos token's price rose to its all-time high so far of 44.45 USD.
The most important events and milestones in the ATOM price so far have been:
- 2017: Launch of the Cosmos (ATOM) token
- January 2022: 44.45 USD / ATOM (all-time high)
- March 2020: 1.16 USD / ATOM (all-time low)
- February 2023: 13.66 USD / ATOM
- August 2023: 7.46 USD / ATOM
Comparing the price of Cosmos (ATOM) with other cryptocurrencies
Cosmos (ATOM) differs from other cryptocurrencies in multiple ways. The developers, who are also the creators of the Tendermint algorithm, placed a lot of emphasis on scalability. As such, they created a scalable network of blockchains that can interact with each other. Other cryptocurrencies such as Bitcoin and Ethereum are well-established coins in comparison to Cosmos (ATOM), but they are characterised by low scalability. Also, Cosmos uses a Proof of Stake consensus mechanism, where users stake their tokens to secure the network. Conversely, other cryptocurrencies use the Proof of Work mechanism.
Cosmos is also known for providing an infrastructure for the development of decentralised applications, whereas Bitcoin and Litecoin were mainly designed as digital currencies and Ethereum is known as a platform for decentralised apps. Although the price of Cosmos (ATOM) exhibits high volatility, it could still be of interest to risk-aware investors.
Potential forecasts for the Cosmos (ATOM) price
The ATOM price, like that of other coins and tokens, is volatile. Past developments in the ATOM price do not provide reliable forecasts for future price developments, so it's difficult to predict the token's future. However, some experts speculate that the demand for Cosmos (ATOM) as a cryptocurrency could increase. Since the Cosmos network places high value on scalability and interoperability, it could enable significantly more transactions, which could also increase demand.
Although the Cosmos price shows an overall positive development, ATOM is very volatile and is subject to large price fluctuations. Cosmos also competes with prominent competitors such as Polkadot. Both are striving to unify the blockchain ecosystem and enable the development of new projects by creating custom blockchain networks.