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Author: David Attermann, M31 Capital Translation: Shan Ouba, Bitchain Vision Realm
Despite universal popularity, ATOM accidentally represents one of the best investment allocation in the market today (risk/return).This article will explain the lowest emotion in the history of the tokens, the wider extensive COSMOS ecosystem, which is impressive, and why “this time is different.”
COSMOS and atom Introduction
COSMOS is not a blockchain, but a network composed of an interoperable blockchain (application chain or regional chain), which is connected through the IBC (cross -chain communication) protocol.Unlike most blockchain sharing space, developers can customize and deploy their own application chains on COSMOS, which gives them greater design flexibility (different applications have different performance/functional requirements), betterThe scalability/less space competition, and the most important thing is that applications can accumulate value -valuable native GAS tokens.
Atom is the first native currency of the blockchain COSMOS Hub on COSMOS.Over the past few years, Interchange Foundation has mainly focused on the development of COSMOS SDK or software development toolkit, enabling developers to quickly and easily customize and start the application chain.This is highly strategic: first focusing on applications/developers recruitment to expand the network effect, and then add more features to HUB and its native Atom tokens.
However, since the project was launched, the role of HUB in the community has been in the broader ecosystem and the right to the value of tokens has been quarreling.Although the entire ecosystem has achieved exciting growth, HUB’s continuous identity crisis has always hindered the development of tokens.
Atom investment theory
Emotions at the lowest point of history
At present, HUB’s emotions are at the lowest point of history. This can be clearly seen from the absolute and relative price performance of ATOM in the past few years:
Compared with ETH, ATOM’s price has declined in the past year and a half.
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Recently, the market has risen, and ATOM has missed the recent extensive market recovery.
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And atom has fallen 18%over the past 12 months (BTC has risen 120%at the same time).
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COSMOS has become the top web3 ecosystem
The ecosystem is currently ranked third in developer activities:
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IBC annual transaction volume with about $ 50 billion:
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The total market value of the total ecosystem is US $ 82 billion, of which $ 25 billion has access to IBC.
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The ecosystem includes star projects in the main vertical field of Web3, including blockchain infrastructure (SEI, CELESTIA, Dymension, Axlar, Neutron), DEFI (DYDX, Injective, OSMOSIS, ThorChain, Stride), DEPIN (Akash, POCKET, J. actkal, Syntropy, Cudos, DVPN), AI (FETCH.AI, Orachain, Soarchain, AIOZ) and RWA (Provenance, NOBLE)
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When including Provenance, the total TVL of IBC was $ 12.8 billion, becoming the second largest ecosystem calculated based on TVL.(DEFILLAMA and other data providers will not aggregate COSMOS TVL because it has not yet passed the general token connection)
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Why “this time different”
Jae Kwon finally exited.
ATOM holders have tried to increase the value accumulation of ATOM many times in the past.HUB community history has always been divided into two factions:
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1) Those who want to maintain ATOM design simply to maximize security (led by co -founder Jae Kwon)
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2) Those who want to improve the value of tokens, especially those who use the wider economic activities of the COSMOS ecosystem
The figure below is a brief summary of HUB controversial history:
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Discuss the future of cosmos hub and Stride
Despite the rejection of continuously, in November 2023, the proposal 848 (reduced ATOM inflation from 14%to 10%) unexpectedly passed, the prospect of HUB completely changed.Although it is not a huge victory on the surface, this is the last straw of Jae Kwon. He immediately announced his intention to split HUB with his loyal followers.The new chain Atomone plans to launch this month.
As Kwon finally withdrew, the re -active HUB community determined to improve the value accumulation and cognition of ATOM token.Although no major changes have been made at present, there are many exciting ideas (currency, security, liquidity) on the Hub forum, and it is likely that there will be a wave of proposals that may change the rules of the game soon.
OSMOSIS recently introduced IBC cost abstraction is an example.
One of the most common complaints of COSMOS users is to have native token in different areas to make them interoperability.OSMOSIS, the leading COSMOS DEX, has recently introduced a cost abstract module that allows users to pay IBC GAS costs with any COSMOS token (as long as the blockchain has been approved for upgrade).The module is still in the early stage, but if it is widely used, ATOM has legal opportunities to become the default GAS tokens of IBC.
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BABLYLON’s integration greatly enhances HUB’s sharing security model.
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Another little -known development is the partnership of Hub recently with BABYLON and Bitcoin again pledged.The partnership will start the test network this month, which will allow Bitcoin holders to pledge their BTC to protect the COSMOS HUB ICS consumer chain. This will bring Bitcoin security into COSMOS Hub with BABYLON:
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Summarize
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Atom’s emotions fall to the bottom of the valley
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COSMOS ecosystem is never so strong
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With the departure of JAE KWON, ATOM governance can now pursue more meaningful value accumulation (and other bullish options)
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I have no specific catalyst or price goals; I just think that considering its complexity and controversial history, the market ignores ATOM’s series of beneficial development.This dynamic makes the tokens have a very attractive risk/return rate today (as comparison, the complete dilution valuation of ETH and SOL is currently 100 times and 15 times of ATOM, respectively).In view of the favorable settings, I believe that Hub only needs a governance proposal to achieve a major valuation reorganization.
