The Internet Of Blockchains
Cosmos (ATOM) is a project that managed to catch my attention back in 2020. At one point, I was watching it quite closely and even published a few articles about the chain and its expanding ecosystem. There were two main aspects that grabbed my attention back then, and still do today. The first is interoperability, as well as a fantastic staking reward. The reward for ATOM generally ranges between 15% and 20% APR, which is significantly higher than other chains, such as Solana and Cardano.
My thinking was that if I accumulated ATOM* while it was still heavily undervalued, I would be in a position to generate a decent form of passive income via the staking rewards. When it comes to blockchains that offer staking rewards, the idea is to accumulate while prices are low, for the following reason: If you are earning a high yield, and you buy “low”, you are able to increase your APR in “real terms”.
For example, if you purchase ATOM at an average price of $10 per coin and the price goes on to reach $50, you have in essence increased your return to 100% . Essentially, your entire initial investment will be recouped within a year. This is why I have always said that picking up a good staking coin before it is well-known is a gold mine. Imagine picking up Solana at $0.30 and then staking those coins.
Even after Solana’s massive correction, it’s still extremely viable. This is definitely the way to go about dealing with altcoins that offer staking rewards. Early access ensures the tremendous potential for creating a significant form of passive income. Anyway, somehow I managed to get distracted by a number of other projects, and ATOM didn’t really perform that well, especially in comparison to other projects.
However, at one point there was a bit of a “buzz” surrounding Cosmos but it was rather short-lived. It was almost as if it was perhaps time for Cosmos to begin capturing the attention of altcoin investors. Unfortunately, it appeared to take place a little too late and was unable to fully utilize the power of the 2021 bull market. This leads me to consider that perhaps the next bull market is going to be where Cosmos really comes alive.
Positioned For The Future
Cosmos is currently ranked 22 and is trading at $11.17 at the time of writing. The trading volume is pretty solid and the market cap is just north of $3 billion. An article published by Cointelegraph yesterday suggests that devs may soon be able to port Solana WEB3 apps to the Cosmos ecosystem.
According to a March 30 announcement from the developer of Cosmos-based network Injective (INJ), the team has released a layer-2 testnet that utilizes Solana’s Sea Level Virtual Machine (SVM). This means that some Solana developers can now test their apps for use in the Cosmos ecosystem without needing to change the programming language or tooling used.
This is pretty good news for the Cosmos ecosystem which already has 272 apps and services. The next bull market might just be what Cosmos has been waiting for, and will perhaps help propel it into the Top 10.
Free BTC Every 30 Min
Final Thoughts
A strong correction in the Crypto market might be a good opportunity to load up on some ATOM. The staking rewards are definitely an attractive aspect, especially if one is able to scoop up some discounted coins. Maybe it’s time for me to revisit my initial idea regarding Cosmos. Anyway, that’s it for this one, see you next time!
Free Cardano
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto
Free Solana
Free BFG Every 5 Min (NEW)
Free Hourly BTC
Even More Free BTC
