Cosmos Price Prediction (ATOM)

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Contributor, Benzinga
January 18, 2023

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Interoperability is lacking in cryptocurrency because blockchains, like Ethereum for example, have different protocols and standards that make it difficult for them to communicate with each other. The lack of interoperability creates a barrier between blockchain networks, which means that talent and resources are diverted into developing competing networks, rather than a unified system.

An easy way to understand interoperability in crypto is by imagining yourself trying to have a conversation with someone who speaks a different language from you. Just as you need a translator to understand and communicate, different blockchain systems need a way to understand and interact with each other. Without a translator or common language, these blockchains become isolated, often referred to as siloed blockchains, as it is difficult to share information and resources. Isolation makes it hard to achieve the full potential of blockchain technology, similar to how a conversation can be limited by a language barrier. 

Cosmos aims to solve this problem by providing an ecosystem of connected parallel blockchains that can interact with each other. The following discussion will explore how Cosmos works, and how high the price of Cosmos (ATOM) could go in the near future.

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What is Cosmos (ATOM)?

Cosmos is an ecosystem of networks that allows blockchains to communicate and exchange data with each other, facilitating greater scalability and interoperability. Imagine Cosmos as an internet of blockchains that are networked together. 

The Cosmos network consists of a proof-of-stake (PoS) mainnet and customizable blockchains called Zones. The main chain, Cosmos Hub, facilitates the exchange of assets and information between Zones and provides a shared level of security for all connected networks. Zones are used for a diverse range of applications. Each Zone can authenticate its own transactions, implement custom developments, and most importantly, interact with any other Zone in the Cosmis system – provided they have permission to do so. 

Cosmos SDK is an open-source software development kit that is used to create Zones. Using Cosmos SDK simplifies the creation process significantly, without sacrificing the standards you’d typically expect when building a blockchain. Binance Chain, Cronos Chain and THORChain are a few notable projects built with Cosmos SDK.

ATOM is the native cryptocurrency associated with Cosmos Hub and has three primary use cases:

  • ATOM is used to pay transaction fees, proportional to the computational power required.
  • The coin is staked by validators to secure the network. When participants stake ATOM, they are essentially locking up their ATOM as collateral to help validate transactions and prevent malicious activity. 
  • ATOM plays an important role in the Cosmos Hu governance system – voting power is proportional to the amount of ATOM you hold.

Cosmos (ATOM) Market Position

At the time of writing, Cosmos’ market capitalization is roughly $3.2 billion, placing it in the top 20 cryptocurrencies by total market capitalization. Cosmos’s biggest competitor is Polkadot (DOT), which has a respective market cap of $5.6 billion, placing it in the top 15 cryptocurrencies by market cap.

Like Cosmos, Polkadot is an ecosystem of networks that aims to solve the interoperability problem within the cryptocurrency space. However, a key difference between Cosmos and Polkadot is how they approach interoperability. While Cosmos connects multiple blockchains (Zones) together through a central hub, Polkadot uses a relay chain to connect different blockchains.

 A relay chain can be thought of as a central highway, where different cars, or blockchain networks, can drive and communicate with each other. Conversely, the Cosmos hub is akin to an airport hub, where different planes, or Zones, connect to the hub, and use it as a stopover point to exchange data before continuing on their separate journeys. Both networks have their fair share of trade-offs and advantages that fall beyond the scope of this article.

If Cosmos were to eclipse Polkadot at its current market value, investors would experience a return of over 50%. However, both Polkadot and Cosmos pale in comparison to the size of Ethereum – the world’s largest programmable blockchain project (Layer 1). If Cosmos were to reach 10% of the size of Ethereum, investors would experience a return of over 500%.

Patrick Bush’s and Matthew Sigel’s Bullish Long-Term Cosmos Price Prediction

Patrick Bush is a Digital Assets Senior Investment Analyst at VanEck, and Matthew Sigel is the Head of Digital Assets Research at VanEck. VanEck is a global investment manager that offers active and passive strategies with compelling exposures to a wide range of assets.

In a recent article published by VanEck in August 2022, both Bush and Sigel highlighted their strong support for ATOM. They believe Cosmos Hub has a strong product market fit and ATOM has strong token value accrual.

Based on a discounted cash flow analysis of potential Cosmos ecosystem value in 2030, they arrived at a $140 price target for ATOM with a downside of $1. Both analysts believe Cosmos SDK’s flexibility will allow Cosmos to support over 5,000 different blockchains by 2030.

Yulin Liu’s Bearish Long-Term Cosmos Price Prediction

Yulin Liu leads the research on token economics and governance systems at DFINITY. He also serves as an Affiliated Economics Professor at Huazhong University of Science and Technology. Liu specializes in cryptocurrency, tokenomics and blockchain governance systems.

While Liu did not provide a downside price target for Cosmos, he did list some key concerns in a recent article published by Medium

  • “Staking period (21 days) is way too short. Speculators could vote for proposals that are in favor of short-run interests,” stated Liu.
  • “The current voting design does not scale as the system grows. As the ecosystem grows, proposals on different topics will be initiated more frequently. It is neither efficient nor fair to require all validators to vote on every proposal.”
  • “Delegators, dApp developers and liquid token holders are underrepresented in the governance system.”

Changelly’s ATOM Price Predictions

Changelly is an excellent tool that can be used to predict the future prices of Cosmos and many other cryptocurrencies. Changelly uses AI and market research to derive its forecast and predictions. Changelly suggests that ATOM should appreciate over the next few years, although not without risk. 

2024 Cosmos Price Prediction

Based on ATOM’s historical price performance, it is predicted that in 2024, the minimum price of ATOM will be around $18.42. The maximum expected ATOM price may be around $21.08. On average, the trading price may be around $18.93. From current prices, this would be over 50% ROI.

2027 Cosmos Price Prediction

Changelly has an optimistic outlook on ATOM in 2027. The minimum ATOM price is predicted to fall to $83.60 in 2027, while its maximum price can reach $102.34. The trade price will typically be about $83.60. From current prices, this would be over a 500% ROI.

2030 Cosmos Price Prediction

While 2030 may seem far away, Changelly still has managed to provide price predictions for ATOM. Note, it is important to take this prediction with a grain of salt given how far it is in the future. This prediction also assumes that the cryptocurrency market and ATOM will still be relevant.

Changelly predicts ATOM will be traded for at least $246.73, with a possible maximum of $298.10. As a result, on average, you could expect the ATOM price to be around $253.86 in 2030, which would yield a colossal return of over 2,000%.

Where to Buy ATOM

ATOM can be traded on major exchanges such as Crypto.com and Uphold. Many of these platforms allow you to purchase ATOM using your credit card, through swapping features or through different trading pairs such as ATOM/USDT. 

How Long Will It Take for ATOM to Reach ATHs?

It is impossible to predict exactly when ATOM will reach all-time highs (ATHs); however, you could consider a few important factors that can provide some insight. 

The first consideration is the macroeconomic climate. During periods of tighter monetary policy, liquidity exits the cryptocurrency market, which can result in declining prices for cryptocurrencies such as ATOM. As a result, the federal reserve likely needs to pivot from rate hikes to rate cuts before the market begins to rally.

Another important factor is Bitcoin – the flagship of the crypto space. As the first and largest cryptocurrency, Bitcoin largely determines the trajectory of the broader market. A key Bitcoin price catalyst that could cause ATOM to appreciate is the next Bitcoin halving, which is predicted to take place sometime in mid-2024. 

Given these factors, many experts such as Benjamin Cowen and Guy From Coin Bureau believe that altcoins such as ATOM could start making a recovery by the end of 2023 and begin to approach ATHs as early as 2024. 

Where to Store ATOM Safely

Crypto holders can store ATOM safely using hardware or software wallets. A hardware wallet is a physical device that stores a user’s private keys offline, offering an extra layer of security from cyber attacks. Conversely, software wallets are connected to the internet and are more convenient but less secure. 

Best Hardware Wallet: Ledger Nano S

The Ledger Nano S is one of the most trusted hardware wallets in the world. It supports over 1,800+ different cryptocurrencies, including ATOM, Bitcoin, Ethereum and all ERC-20 tokens, and is a great way to store your cryptocurrency offline. 

Best Software Wallet: Exodus

Exodus is a multi-chain software wallet that supports 260+ different cryptocurrencies including ATOM. It supports staking, swapping and the purchase of non-fungible tokens (NFTs). It is a great choice for investors at all levels and can be accessed through a wide range of mediums such as desktop, mobile or browser extension.

Current Crypto Prices

The cryptocurrency markets are inherently volatile, often fluctuating by significant amounts in a short amount of time. It is best practice to monitor price on a daily or weekly basis. See the most recent prices below:

So, Is Cosmos a Good Investment?

If you are a long-term investor, then it may be a good time to start building a Cosmos position over the coming months. Cosmos is a high-risk investment opportunity with a potentially life-changing payout. Cosmos is a leading crypto in the interoperability sector and has a strong community and developer support. However, given both the inherently volatile nature of cryptocurrency and the speculative nature of Cosmos, it's important to only invest money you are willing to lose.

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