Today, we’re discussing a coin that aims to connect blockchains and create an “Internet of Blockchains.” That’s right. Today’s Coin of the Day is Cosmos, which we will be evaluating on various parameters to help you decide if this is the right investment for you.
So let’s dive right in!
#Day 13 – Cosmos (ATOM) Coin Of The Day Report
ATOM’s bullish score is a testament to its robust fundamentals and consistent growth.
How Did We Arrive at This Score?
We evaluated Cosmos on the following parameters.
1. Price Performance ✅
Though past price movements don’t necessarily dictate future prices, it’s good to know how your potential investments have performed historically.
2. Fundamental Analysis ✅
In this section, we evaluate the Cosmos network based on critical on-chain metrics.
2.1. Active Addresses Count
Active address count indicates the overall activity on the network. A growing active address count signals a growing network and positively impacts the network token’s price.
Monthly active addresses on the Cosmos network went from ~207k in June 2022 to around 235k in May 2023.
2.2. NVT Ratio
💡NVT Ratio: It compares a cryptocurrency’s market cap to its transaction volume. A high ratio suggests a potential bubble since the market cap is outpacing the transaction volume. A low ratio indicates an undervalued token.
P.S. The NVT ratio for each cryptocurrency varies. Also, one shouldn’t look at NVT in isolation and must always combine it with other indicators.
2.3. Blockchain Roadmap
The Cosmos blockchain’s roadmap can be divided into two parts – a record of past milestones and plans that are currently in progress.
- Introduced the Inter-Blockchain Communication (IBC) protocol, which allows different blockchains to communicate with each other securely and efficiently.
- Released the Cosmos SDK, which enables developers to easily build custom blockchains on the Cosmos network.
- Launched the Gravity DEX, a decentralized exchange with a unique design and a user-friendly interface that quickly became popular among the community.
Plans in progress
- The Rho Upgrade- It focuses on improving security on the network by reducing the likelihood of validators misbehaving.
- Replicated Security- It is the first version of Cosmos’s Interchain Security, and it will allow blockchains in the Cosmos ecosystem to share validation resources among themselves, thus improving the security of the network.
3. Community Sentiment
The ATOM Fear and Greed Index analyzes social mentions, search engine queries, and technical indicators to gauge community sentiment. Fear suggests higher levels of uncertainty around ATOM. However, Warren Buffett once said that it is wise for investors to be “fearful when others are greedy, and greedy when others are fearful.”
4. Technical Analysis ✅
Oscillators: They suggest a buy signal when an asset is oversold, indicating that the security may be underpriced and vice versa.
Moving Averages: When a moving average crosses above another moving average, it indicates that the trend is bullish and vice versa.
💡Oscillators and moving averages both lean towards sell, indicating active selling to a point that the asset has become oversold.
- The Cosmos network ranked third among all blockchains in terms of developer activity on its network in 2022, recording 1622 Github commits. This ranked it ahead of networks like Ethereum and Polygon.
- Q1 of 2023 saw the Cosmos network implementing much-anticipated upgrades to its ecosystem, including the Rho upgrade and the Interchain Security feature, both of which contributed to improving the network’s security.
- Cosmos-based blockchain Injective partnered with Eclipse to launch a rollup chain that would make Solana applications accessible through Cosmos, effectively creating a larger audience for the Cosmos ecosystem.
Disclaimer: None of the information in the email is intended to be financial advice. Please do your own research before making any investments.