ATOM managed to remain an exception in the overall downtrend of crypto markets for a few days, continuing to grow despite large price fluctuations from other tokens.
Ethereum Merge The event was held successfully on September 15, marking an historic day in the history crypto. Although some predicted a surge, the event did not bring about the spike many expected. In reality, many cryptos including ETH and BTC experienced a downturn simultaneously. This confirmed the “Buy the rumor, sell the news” tag; crypto analysts conferred on the event in advance.
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One token remained strong despite the bearish market trend: the Cosmos native crypto. ATOM gained up to 20% within 48 hours despite the market volatility. ATOM’s price is $17, almost 20% more than the $14 it was just 48 hours ago. The Cosmos native token, which is not available on the market at large, has experienced its ups and falls in line with a rising trendline.
ATOM Gains Due to IBC & Staking Opportunities
These gains are due to the migration of many protocols to the Cosmos block chain. Numerous projects rebuilt their operations at Cosmos Hub after the Terra ecosystem collapse. Each project contributes to ATOM’s success by being part of the IBC interblockchain security system.
Cosmos offers lucrative stake opportunities, with an APY close to 18%. Additionally, different utility services are being introduced to the network, which will improve the ATOM value in the future. The protocol’s liquidity staking is now ready for launch. Cosmos protocols are also preparing for their own stablecoins. ATOM will most likely be the primary asset to mint.Source: AtOMUSD price chart at TradingView.com
Increased market volatility due to recent macroeconomic events
The market for digital assets has been under increasing pressure from recent macroeconomic events. Cryptos are struggling to overcome price restrictions and turn bullish. These factors cause the market to bear down. The assets then fluctuate. Recent events such as the release of August’s inflation data show the steady rise in inflation.
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In the last seven days, Ethereum has fluctuated between $1,700 to $1,500. The volatility curve of Ethereum has shown a declining trend over the last week. Since the Merge, the second-largest crypto market cap has fallen 11%. ETH currently trades below $1,500. Bitcoin fell below $1,500 on Thursday due to Tuesday’s inflation data. Trades for the first coin have been inconsistent between $19,000 and $23,000. BTC trades at over $20,000 as of the writing.
Featured image taken from Pixabay. Chart from TradingView.com