Cosmos (ATOM) continues to be one of the most widely recognized cryptocurrencies on the market. The asset, with a market capitalization of $8.86, is positioned at rank 24.
ATOM is among the major coins that have been struggling for the past few years. The asset lost 8.88% of its value in the past year and has not recovered since. Although the coin gained 23.63% in value in the past month, it was primarily due to Bitcoin steering the market.
So, is ATOM still a profitable buy for crypto traders? Let’s see. The current state of Cosmos appears to be at a critical juncture.
The crypto market has struggled for a while but has a packed schedule for the coming months. Jae Kwon, the founder of ATOM, recently admitted that the token must not be considered money. Moreover, Kwon proposed forking $ATOM to launch a new chain, AtomOne.
Everyone who voted against reducing ATOM staking inflation to 10% is set to earn $ATOM1, the upcoming token. The network passed the 848 proposal to decrease ATOM’s inflation rate to 10% from 14%. Simultaneously, the network reduced its staking APR to 13.4%.
Reducing inflation is an intuitive way to induce artificial scarcity, leading to a price hike. The development has made ATOM an attractive option for DeFi users. It indirectly contradicts Kwon’s statement by making $ATOM money.
AtomOne is designed as a minimal fork of Gaia (the original Cosmos). It is a political base that drives diversity and innovation in Cosmos. As expected, the announcement alone enticed crypto traders due to Cosmos’ raging popularity.
Many traders looked for more information on AtomOne while also assessing every Cosmos crypto price prediction. The limited information available on AtomOne indicates that the chain will launch the ATOM liquid staking token, $phATOM.
The $phATOM1 token is set to compete against $stATOM to affect proposals in Gaia. Besides this, $ATOM1 will be bondable to $phATOM1 tokens as well. Due to this, the tokenomics will make $phATOM1 the sole fee token.
Based on these propositions, we can confidently state that Cosmos will make significant progress in the coming months. At the rate the crypto market is progressing, ATOM is also ready to ride the wave of success alongside.