Is Cosmos a good investment?

Cosmos (ATOM) is an emerging cryptocurrency and strong competitor to the popular Ethereum smart contract platform that offers developers the power to create independent and highly customizable blockchains. Several projects migrated to the Cosmos ecosystem in 2022 when the leading Ethereum-powered futures contracts exchange, dYdX, projected its plans to develop its standalone blockchain network on Vosmos.

Cosmos has attracted major investments from leading names in the crypto industry, including Bain Capital, 1Confirmation, and Paradigm. However, even with so much success and popularity, is Cosmos still a good investment for traders in 2023?

Let’s find out why by researching ATOM’s historical price analysis and market predictions and conducting a SWOT analysis of ATOM coins.

ATOM’s Historical Price Analysis

ATOM entered the crypto market in 2019, priced at $6.633. It soon plunged and hovered between $3 and $5 in 2020 as the crypto and other financial markets were hit by the global COVID-19 pandemic and lockdown.

Later, the value of Cosmos reached its bottom at $1.6 but took a turnaround in 2021 following ATOM’s suit and crypto markets flourishing. It reached a periodic high of $28.6 by May 2021, and by the year’s autumn, Cosmos went to touch its all-time high level at $44.70 in September. 

Again, there was a slipback, but the coin regained its value in January 2022 at $40.17, boosted by the profitable partnership with Terra Blockchain. However, Terra’s sudden collapse in May 2022 pushed the market back into turmoil, plunging its value to as low as $5.59. However, with the news of dYdX operating on Cosmos, the ATOM went up to $16 in September 2022 following a bad news letter regarding the FTX bankruptcy, leading to an annual loss of over 70%. 

The beginning of 2023 was positive for Cosmos as it took advantage of the buoyant market, trading at $15.36 in February but slowly sliding down later. ATOM was considered an unregistered security by the SEC in June, and its value dropped further to below $10 and later reached $7.50.

After some recovery, Cosmos went over $9.89 in July but remained around the same value later, currently trading at around $6.78.

Market Predictions and Expert Opinions 

Based on the current price action, our ATOM price prediction suggests that the ATOM is a good investment option as it may reach a maximum price of $75.17 by the end of 2030, with a minimum price of $52.22.

At the same time, CoinCodex’s Cosmos price prediction for 2024 suggests that the coin’s minimum price may be $ 5.66 while it may have a maximum price of $ 8.35 throughout the year.

Changelly, a crypto expert, confidently predicts that ATOM‘s price may be a profitable option as it will cross the $20 mark in 2025 and reach a maximum value of $24.21.

Nevertheless, it is important to remember that skeptics hold different perspectives on the existing price action. According to the analysis, skeptics proposed ATOM’s price range to fluctuate between $15 and $18, and the current price action of ATOM has a strategic retracement to secure crypto market liquidity.

Various other crypto exports shared a different speculation, suggesting ATOM’s value breaking above its $10 level and converting itself to strong support, building favorable conditions for a bullish trend and long entries. Interestingly, these projections show bullish sentiments but mostly vary in potential price heights and momentum.

Cosmos SWOT Analysis 

Let us look at the strengths of investing in Cosmos: 

  • Cosmos’ ATOM can scale over 1000 transactions per second.
  • It can bring traders passive income through staking on Cosmos and debt trading the crypto.
  • Cosmos’ ATOM engagement is substantially higher than other crypto projects on Twitter, Reddit, Telegram, and Cosmos Forum.
  • The token has a highly credible use case, including Binance Chain, Terra Luna, and Kava. 
  • Cosmos continues to witness excellent trading volumes with high liquidity, recording over $100 million in daily trade volumes.
  • Cosmos Network is introducing DeFi (decentralized finance) via Gravity DEX.

Although Cosmos’ ATOM is an amazing project, it certainly has some pain points that could be detrimental to the token’s future. Some of the weaknesses of Cosmos include:

  • Staking problems with ATOM on the Cosmos network take about three weeks to retrieve the stake. 
  • Cosmos has had a first-mover advantage but faces fierce competition from newcomers like Polkadot, Avalanche, and Chainlink. 
  • The price of ATOM continues to thrive on speculation.

Conclusion

So, can Cosmos be a million-maker crypto for investors? Currently, ATOM has a market capitalization of $2,492,242,300, making it a medium-cap virtual asset. It will continue to increase as the blockchain network continues to be incorporated by both established and upcoming crypto projects.

ATOM value will go up substantially since activities on the Cosmos network could deplete the number of assets in the market. It is also a popular finite resource.

However, it is important to note that cryptocurrencies like Cosmos fall under the high volatility asset class, and hence, traders must invest what they can afford to lose. Embark on technical and fundamental analysis before deciding which crypto to trade.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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