In this guide, we will express our opinion and that of the market on the future of Cosmos as we discuss ATOM price forecasts for 2022 and beyond.
Keep in mind that you should take this and any other forecast with a grain of salt since predicting anything is a thankless task, let alone predicting the future of a new highly volatile financial asset like Cosmos.
Now, let’s get into it.
Before we delve into Iota’s price prediction and answer questions about whether Cosmos is a good investment or not, why Cosmos will succeed or fail, or why the price of Cosmos will rise or fall, let’s quickly take a look at what Cosmos is and its history to date.
Table of Contents:
What is Cosmos
Cosmos markets itself as a decentralized network of independent parallel blockchains powered by Byzantine Fault Tolerant consensus algorithms like Tendermint. Byzantine fault tolerance is a feature of a blockchain’s consensus algorithm that makes it able to reach consensus in a decentralized environment that could potentially contain malicious consensus verification nodes in it.
These blockchains are able to interact with each other through the Cosmos Network, the so-called “Internet of Blockchains”. Also known as the Cosmos Hub, it is the first blockchain launched within the Cosmos Network and its main task will be to interconnect other blockchains (also known as zones) in the ecosystem. Tokens can be transferred from one zone to another securely and quickly with the help of Cosmos Hub.
Cosmos Network will be built on three key parts:
-
Tendermint Core
- – Connects the network and protocol consensus layer under a software implementation known as Tendermint Core. It contains the Tendermint BFT consensus algorithm and the IBC (interblockchain communication) protocol for hub/zone communication.
- Application Blockchain Interface (ABCI) – BFT replication of dapps in multiple programming languages. ABCI is language-independent and allows developers to build the application part of their blockchain in any language. It is the connection interface between Tendermint Core and Cosmos SDK.
- Cosmos SDK – development resource also known as “Base Coin”. The main purpose of the SDK is to reduce the complexities in building ABCI for common blockchain capabilities and allow developers to focus on customizable applications within a standardized framework. Developers can take this basic frame that has built-in tokens, governance, staking – all the basic features required by a blockchain – and then add the desired functionality via plugins. Basically the application layer of Cosmos Network.
Tendermint Core is responsible for consensus on the Cosmos Hub. The blockchains connected to the Hub maintain their consensus sovereignty, without having to switch to Tendermint.
Developers can create their own blockchains and applications with the help of the Cosmos SDK and run them on Tendermint Core, worrying only about the application layer. ABCI uses a socket protocol to allow the consensus engine to manage the state of the application running in another consensus process, making Cosmos able to support a wide variety of cryptocurrencies and scripting languages such as those found in Bitcoin, Ethereum, ZeroCash, CryptoNote, and others.
About the Tendermint algorithm
Tendermint, the algorithm behind Cosmos, is the first adaptation of the Proof-of-Stake consensus derived from the Practical Byzantine Fault Tolerant (PBFT) algorithm introduced by Castro and Liskov in 1999, after a 30-year research period. BFT-based PoS protocols pseudo-randomly assign a validator the right to propose new blocks during a multi-round voting process.
However, the commitment and finalization of the blocks depends on a supermajority – in this case two-thirds of the quorum – of all validators who sign the proposed block. This can take several rounds, or polkas, before blocks become finalized. BFT systems can only tolerate up to 1/3 of failures, where failures can include arbitrary or harmful behavior.
Some of the features of this algorithm:
- Demonstrable liveness in partially synchronous network.
- Safety threshold: 1/3 of the validators.
- Compatible with public/private chains.
- Instant finalization: 1-3 seconds depending on the number of validators.
- Prioritizing consistency.
- Security of consent.
Cosmos’ proof of stake algorithm is delegated, which means that it is organized in such a way that stakers are divided into two groups: validators and delegators. The delegators have the task of deciding which validators can take part in the consensus; Validators are there to be part of the consensus, validate transactions, and add new blocks to the chain.
The rewards these stakers earn are generally earned in the ATOM token, but in the future they could also be earned in wrapped forms of alternative cryptocurrencies such as Bitcoin and Ethereum. If one of the nodes of this system begins to work maliciously, it is “cut” from the network and its tokens are taken away.
Cosmos Price Forecast
The entire cryptocurrency world is on the verge of a real bear market. Bitcoin has tumbled 50% from its all-time high amid broader market declines influenced by furious inflation and US Fed rate hikes.
Investors are selling risky assets and moving to more stable markets. Crypto is still perceived as a very risky game and therefore sell off.
Our algo still sees some green in 2022, especially in the second half of the year. This is reflected in our forecast for 2022.
Right now, Bitcoin needs to find a local bottom before we can move in the opposite direction and reverse the trend.
Once Bitcoin settles into the new price range, altcoins will start doing the same – we’ve seen this scenario dozens of times in distant and more recent history.
Our price forecasting model is bearish for the next 90 days with a hint of a bull market straddling quarters from Q1 to Q2. We expect whales and other larger players in the market to finish filling their bags around that time, which will cause a typical and sudden crypto spike.
The fundamentals we evaluate are teams, tokenomics, use case, community, marketing efforts, liquidity and availability of exchange, hype and speculative potential, and some other proprietary factors developed in our crypto lab.
ATOM Price Prediction for the next 90 days
Below is a tabular overview of how ATOM will develop in the short term (for the next 90 days), according to our forecast model:
Cosmos Price Prediction 2022
Most experts agree that this bear market will last at least for the first quarter of 2022 before we see some stabilization and small trend reversals.
ATOM Price Prediction 2025
Our forecast model sees ATOM reaching $26.52 in 2025.
Cosmos Price Prediction 2030 – 2040
How much will Cosmos be worth in 2030?
Our forecast model sees Cosmos reaching $66.31 in 2030.
How much will Cosmos be worth in 2040?
Our forecast model sees Cosmos reaching $132.61 in 2040.
Will Cosmos replace/surpass/surpass Bitcoin?
No, Cosmos will not replace or exceed BTC.
Can Cosmos reach $100?
Yes, Cosmos could reach $100 by the end of 2025.
Can Cosmos reach $1000?
Yes, it is possible that Cosmos could reach $ 1000 but only in the distant future, after 2030.
Is it worth buying Cosmos?
We are supporters of moderately risky investments: invest most of your cryptocurrency portfolio in BTC (50%); 35% in a basket of large-cap coins and the rest in small projects with huge increases. So, in this context, it is worth buying Cosmos.
Is Cosmos a good investment?
Cosmos is, just like all other cryptocurrencies, a risky investment. It is more likely to go up than down because of the good use case, well-designed tokenomics, active community, and a strong team behind it.
How much will Cosmos be worth?
For the short-term future, it could reach $6.90. In the long term (8-10 years), it could jump to $66.31 or even higher.
Why will Cosmos succeed and go up in price?
Cosmos has a good use case, well-designed tokenomics, active community, and a solid team behind it. All of these are a prerequisite for success and that’s why our forecasting model sees Cosmos rise to $66.31 in 2030.
Why will Cosmos go bankrupt and go down in price?
Cryptographic projects fail for various reasons. Some of the most common are: the team goes rogue and abandons the project, regulators declare it illegal and press exchanges to delist it, lack of media attention, more successful competitors, lack of a well-designed marketing strategy, loss of community support, potential vulnerability in the protocol, failure to achieve the minimum development activity foreseen on the protocol, inability to attract new developers to build on their platform.
How high will Cosmos go?
Our prediction model sees the price of Cosmos explode and reach $132.61 in the distant future.
What is the short-term forecast for Cosmos?
Cosmos will reach $6.90 over the next 90 days, which is a 38.2% change from the current price which hovers around $11.17.
Can Cosmos make you a millionaire?
Yes, if you buy a large enough sum. Don’t expect to invest $100 and become a Cosmos millionaire. But 100x price explosions are a common sight in crypto, so a $10k investment in Cosmos could make you a millionaire.
Cosmos Price Prediction Today – What Will Cosmos Price Be Tomorrow?
Cosmos will hover around $11.26 tomorrow.
Fundamentals
Many investors (traditional and crypto) will tell you that fundamentals are extremely important and should carry the most weight when evaluating a project. We agree with this statement, to some extent.
Crypto is specific in the sense that fundamentals are hard to rely on. How come?
Well, most crypto investors aren’t technologically refined to figure out if it’s even feasible to do what the project claims to do. This leads to exaggerated and unfounded roadmaps by many crypto project teams. These roadmaps look great, and people flock to invest in the project even though, with a little technical or economic knowledge, they would have seen how ridiculous some of those ideas are.
Use case
For this reason, it is always good to check the feasibility of the use case by consulting someone more technically astute.
For example, many of these projects noticed the problem of the speed of transactions with Bitcoin, so they went all-in with the speed of their blockchains. But that speed had the cost of decentralization. Essentially, they claimed to have solved a blockchain trilemma, which has been bothering genes for centuries. But twenty appointments solved it in a week or so.
What does Cosmos do?
It’s not a very original use case. Just another smart contracts platform that aims to be faster and more efficient than Ethereum. Making land on ETH will be a steep hill to climb. However, Cosmos managed to separate from the rest of the Ethereum hunter group and join Polkadot in an effort to be the most serious contender for smart contracts and the DeFi crown.
Delays have continued to weigh on Ethereum which continues to give a surprising chance to its competitors such as Polkadot, Cosmos, NEO, Cardano and many others.
The main advantage of Cosmos over Ethereum and other competitors is its superior design, right from the start. Here are some of the highlights of designing Cosmos Network:
Cosmos’ vision is to have thousands of interoperable zones and hubs through the Inter-Blockchain (IBC) communication protocol. Cosmos can also connect to other systems through peg zones, which are specially designed zones that are tailor-made to interact with another ecosystem such as Ethereum and Bitcoin. Cosmos does not use Sharding with every Sovereign Zone and Hub with its own set of validators.
Each zone and hub in Cosmos is capable of performing up to approximately 1000 transactions per second with the bandwidth being the bottleneck in the consensus. Cosmos aims to have thousands of Zones and Hubs all connected via IBC. There is no limit to the number of Zones/Hubs that can be created.
Tendermint’s consensus is limited to about 200 validators before performance begins to degrade. While there is the Cosmos Hub it is one of many hubs in the network and there is no central hub or limit to the number of zones/hubs that can be created.
The Tendermint consent used in Cosmos reaches the purpose within 6 seconds. Cosmos consists of many Zones and Hubs that connect to each other. Communication between 2 zones could pass through many hubs along the way, so it can also contribute to latency times depending on the path taken as explained in the second part of the articles on Cosmos. There is no need to wait a long time with the risk of rollback.
Currently there are about 50 projects that are based on Cosmos SDK with a complete list can be seen here and filtering by Cosmos SDK. Not all projects will necessarily connect using native Cosmos sdk and IBC and some have forked parts of the Cosmos SDK and use tendermint consensus like Binance Chain, but have said they will connect in the future.
Team
Evaluating the team behind the project is another point that needs to be addressed. Most of the time, these people will be the sole source of their claims (and modified LinkedIn profiles). So while this is an important criterion, keep in mind that a cunning team of marketers can fake legitimacy.
A huge RED FLAG on a team is tweeting, publishing, blogging about the price of their token. No legitimate team does this because they have smarter things to do, like working on their multimillion-dollar project. Only money hoarders run their official social media and blogs like the most blatant manipulators in the market (example: Justin Sun) to drive up the price before downloading their mountains of coins that they created out of thin air and assigned to themselves.
Such teams usually pay low-level crypto media publications to publish “unbiased” articles and reviews of their projects in an attempt to create the illusion of a widely respected and attractive project.
Very transparent and professional. No action on shilling prices or comments, focused on construction.
However, the initial team disbanded, but the project did not fade away and the division was quite civil. All former members have remained active and are working on the development of different parts of the network to this day.
Founder Jae Kwon accused first collaborator Zaki Manian of blasphemy, arguing that this software was “divine” and asking Manian to renounce his “self-proclaimed devotion”.
Kwon continues to lead Tendermint’s work on software development, as does Manian startup, Iqlusion, and some other companies such as Althea and Chainsafe. In addition, the non-profit organization has created a startup in Berlin, Interchain GmbH, now composed of former Tendermint technologists working on the same goals as in 2019.
Community
Community – pay special attention to this. The size of the community is not relevant as it can be easily spoofed (just check Fiverr or Upwork to see how easy it is to buy 100k of Twitter followers or subreddit subscribers).
What’s most important is the content that community members post: does it sound real? Is it just price-centered? It allowed to exercise some critical thinking or the only posts allowed are hucksters and cult idolatry of the team (most often the team leader gets a rockstar status among embarrassed investors).
Is it worth investing in Cosmos – community assessment
Very active subreddit with almost 20k subscribers and a rather active Telegram group along with a dedicated forum. It seems to be genuine and authentic, no bots, no low quality posts about moons and price action.
Exchanges and wallet support
Another good indicator of how serious the project taken by other crypto agents is. Some smaller, marginal exchanges and wallets may be paid for listings, but larger platforms like Kraken, Binance, or Coinbase lend legitimacy to a project that’s listed there. So, this is a great starting point if the project is really worth something among its peers.
Why will Cosmos succeed?
Excellent support among popular exchanges (Binance, Bitfinex, Kraken, Kucoin etc) and wallets (Atomic Wallet, Trust Wallet, Watch etc.).
Tokenomics
Sometimes the project makes sense and everything seems right except the role of the token. It is simply superfluous and forced in the photo (so the team can take the money and get rich). Aside from the logic behind the token, you should pay attention to its current and overall supply. In addition, inflation and the rate of production of new coins are extremely important. The distribution between the team, early investors and regular users is also of immense consequence. Check out Ripple and XRP to see how difficult it is to have organic price growth when there is a large number of people downloading millions of new tokens (unlocked) to the market every week.
It is important that tokens are woven into the project with smart incentives in mind. These are incentives in the world of cryptocurrencies: why should the buyer keep some coins, what is in it for him? Different projects use different methods to entice people to buy and hold their coin.
Is ATOM a good investment?
The official token of the Cosmos ecosystem is called ATOM. 168 million tokens were sold in a 2017 ICO, during which the project raised $17,300,000 in 28 minutes (thus completing 100% of its initial sale goal). The team kept 50 million ATOM for themselves to be used for funding and strategic partnerships.
ATOM is not a fixed limited bid token and the bid will continuously increase with annual inflation of around 10% depending on the % stake. The current market capitalization for ATOM at the time of writing this paper is $1 billion with 203 million in circulating offering. Rewards can be earned through staking to compensate for dilution caused by inflation. Delegates can also be cut off and lose a part of their ATOM if the validator misbehaves.
The ATOM token is the native token for Cosmos Hub. It is commonly confused by people who think it is the token used throughout the cosmos ecosystem, while it is only used for one of the many hubs in Cosmos, each with its own token. Currently ATOM has little use as IBC is not released and has no connections to other zones/hubs. Once IBC is released, zones may prefer to connect to a different hub and therefore ATOM is not used.
Cosmos’ ATOM token is only for the Cosmos Hub, of which there will be many hubs in the ecosystem and has very little utility at the moment. (this could improve once IBC is released and if the Cosmos hub actually becomes the hub people want to connect to and not something like Binance.
Trading volume
Trading volume is another excellent barometer of asset quality. This can also be faked by automated trading and wash on small trades, but just filter them out and see if there is actual liquidity on the larger platforms.
Excellent and constant trading volume over the last 3 months with occasional peaks and dips. It moves in the range of $0.5 billion to $3 billion per day, which is on par with its neighboring and direct competing ranked coins (such as AVAX or DOT). 24-hour trading volume did not fall below $0.5 billion in all of 2021.
Speculative potential
Now, we’re talking about the really impactful market forces.
Unfortunately, the
power of social media, especially Twitter, Discord, and Telegram groups, and to a lesser extent, subreddits and Facebook groups, often outweighs the fundamentals of a crypto project. As a result, we see trashy and half-dead zombie projects like Dogecoin, Electroneum, Verge, Tron (not dead but everything is fake around it, from the number of users and dapps to the unoriginal and uninspiring and incompetent leadership) and similar shitcoins rise in the market capitalization charts, sometimes even entering the top 10.
The speculative wave can lift you up in the skies but can, more often, destroy your wallet in a big zilch.
Some people are good at swimming with these sharks (Twitter characters hidden behind some limping nicknames like Crypto [INSERT ANIMAL) or Crypto [INSERT VERB]) who coordinate their pumps and shilling and price dumps. However, ordinary cryptocurrency buyers lack the time or skill to keep up with them and are used as plankton, food for larger sea creatures to feast on.
However, social media can be a place where you come across some good advice about hidden gems. When you read something that piques your interest, don’t get too excited and invest right away. Instead, put it on a watchlist and check out all the things we mentioned above.
The key thing to look for is authenticity: do the community, crypto personas social media posts, crypto media project articles look legitimate? Is it published by respected people with a strong reputation or by no-names who schill coins left and right? Is the community aware of the potential flaws of the chosen project and is it allowed to discuss them? Are there systematic complaints of sudden bans and censorship by community moderators?
A good project is not so difficult to recognize and once you see posts about it from other people – check their profiles, check the history of their tweets/posts, see if the recommendation comes as a genuine suggestion or an artificial shilling made out of self-interest?
Is Cosmos legitimate?
Cosmos is highly regarded in the cryptocurrency industry. There is a lot of attention to its updates, everything seems genuine, authentic and unpaid.
Cosmos Price Prediction – summary
Cosmos is competing not only against ETH but also against others, especially Polkadot and Avalanche.
Polkadot is a thriving shipyard and is seeing the best adoption among project builders, but Cosmos isn’t too far behind.
Cosmos Network is not a paper tiger as there are a number of fairly well-known projects built on it, such as:
Stablecoin: Kava, Terra
Credit markets: Kava, Anchor (Earth)
DEX/AMM: THORChain
Oracles: Band, Chainlink (it is an Oracle solution independent of the blockchain)
Synthetic goods: Kava
DAO: Aragon
After analyzing all of the above about Cosmos, we can say that this is a legitimate project with a unique chance of actually being the project that will overcome the daunting task ahead of it – surpassing Ethereum to be crowned as the king of smart contract platforms. It enjoys a good reputation in crypto circles and could be a worthy investment in the short and long term.
