The Cosmos Native Token PriceATOM, has taken off over 60% since the start of the year as the launch of theInterchain Security, scheduled for the first half of 2023, is approaching. Interchain Security is supposed to improve the value accumulation position from ATOM as a modular chain. Thus, new blockchains will be able to borrow its security and pay Cosmos hub validators. More information in this article.
ATOM continues to grow as Interchain Security prepares
Technical analyzes saw the ATOM price cross an area of resistance important in this first week of February. Note, in fact, that since the beginning of 2023, the price of ATOM increased by 61%. This increase can no doubt be attributed in part to the broader recovery of the market crypto. Nevertheless, the gains of the native token of the Cosmos ecosystem are still more considerable than Bitcoin And Ethereum. Indeed, the latter have gained between 40 and 50% this year.
The volume of contracts term rose from $65 million to $92 million, according to data from Coinglass. This growth in futures trading has paved the way for a volatility increased for the price of the token. It can be inferred that the Cosmos community anticipated the importance of Interchain Security.
Interchain Security will bring more value to ATOM holders
Whether the Cosmos ecosystem has been around for a long time and has passed dozens of milestones, the launch of theInterchain Security might be its most important update. First of all, theInterchain Security will make possible the Practical Hub Minimalisma strategic philosophy at the head of the CosmosHub, without sacrificing platform efficiency. According to its followers, this helps to eliminate the flaws in security and of reduce the risk of conflict of interest between user groupswhich could lead to a hard fork. I’Interchain Security will allow the Cosmos Hub to connect the value of ATOM token to its consumer chains. So any potential bad actor will then have to consider the market value from ATOM when attacking a chain of consumers.
There feature will enable independent blockchains, referred to as consumer chains in the Cosmos ecosystem, to praise the security of the Cosmos hub validators. THE blockchains existing ones based on Cosmos SDKs can also choose to become consumer chains. This will bring additional rewards to holders from ATOM. The first version was already launched in the second quarter of 2022. Under the proposed changes, Cosmos will become a more interoperable, decentralized and secure ecosystem. The implementation of Interchain Security is shaping up to be the most crucial breakthrough in creating value for ATOM holders.
The team of Cosmos concluded its development campaign “Game of Chainsto test consumer strings before deploying the mainnet version of Interchain Security. This feature will be implemented in the update of Cosmos v9 during the month of February.
The article Cosmos: ATOM soars as Interchain Security launch nears appeared first on Corner Academy
