ATOM, the coin that fuels and powers the Cosmos network, has made significant gains in the recent weeks. Cryptocurrency market analysis websites, like CoinMarketCap, started tracking it in mid-March with a starting price of $6.40 USD.
The coin then lost half of its value by April 1st and it has since made gradual gains standing now over $4.50 USD.
But the most interesting stats is not the price but the market capitalization. Currently, the coin’s combined value stands at slightly below US1 billion, but most importantly, it has climbed places on CoinMarketcap into the top 20 in a list of over 2000 cryptocurrencies, tokens and blockchain assets.
This is a significant achievement, given that the project has lived for less than three months.
What could be behind the rise of ATOM?
It is a combination of several factors. These include being listed on major exchanges including Poloniex, ShapeShift and Binance.
The most important factor, though, is a viable network behind the ATOM coin. The team behind the cosmos Network is on a mission, It seeks to make the blockchain technology scalable in a more useful way. It is creating a solution to a problem the crypto community has grappled with since the early days of Bitcoin.
Most of the blockchains have minimal capacity. For example, the Bitcoin blockchain cannot process more than 10 transactions per second. That means users have to put up with a lot of delays when there is a surge in transactions.
Ethereum, on its part, can execute about 15 transactions per second. This has made innovation on top of the blockchain quite difficult. In late 2016, this became a real issue when Ethereum experienced congestion by the transactions originating from Cryptokitties, a game running on its blockchain.
The Cosmos network provides the necessary tools for building sovereign blockchains that talk to one another (interoperable). With this protocol, developers do not need to build their application on an existing blockchain and, therefore, become constrained by its structure. They can quickly build a blockchain for every application, and the different blockchains can then interoperate.
The entity that manages the project is Tendermint inc., and it raised about $16 million USD in an initial coin offering (ICO) in 2017. In March the project crossed a major milestone when it launched Cosmos Hub, the first blockchain built using the Cosmos protocol.
Cosmos Network is one of several blockchains scaling solutions, others include SideChain and Plasma. However, it seems like Cosmos has taken an early lead.
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