The market has fallen further as major cryptocurrencies continue to fall towards their most recent support levels. This has only extended the altcoin market’s losses to bring down tokens such as Cosmos (ATOM). According to CoinGeckothe token has lost nearly 23% since last month and dashes any hope of recovery to higher price levels.
Related Reading
Despite its recent underperformance, the Cosmos ecosystem has seen developments that could stem the bearish tide. However, it remains to be seen whether these recent on-chain developments have a definitive effect on ATOM’s future performance.
Balanced DAO adopts Inter-Blockchain Communication (IBC) protocol
The official Cosmos announced that Balanced, a stablecoin platform and decentralized exchange, has adopted the Inter-Blockchain Communication (IBC) protocol, making it part of the Cosmos ecosystem.
Balanced enters the #interchain
Through IBC integration, @BalancedDAO brings its cross-chain DeFi platform to Cosmos SDK chains – with connections to @archwayHQ & @injective already lives.
In the blog post below, learn more about Balanced ⬇️https://t.co/igDR3YdNfp
— Cosmos – The Interchain ⚛️ (@cosmos) August 27, 2024
According to your blog postBalanced adopted IBC as a means to connect to as many chains as possible, improving on-chain scalability while providing commensurate security.
Impressively, the implementation phase of IBC adoption went smoothly, with Balanced developers opening communication channels between the Balance chain and IBC, without the need for a hard fork to the network’s existing cross-chain connections. Cosmos benefits from Balanced’s large pool of connections with big names like Solana, Polygon, and many more.
$1.03B in transfers and 2.3M monthly active accounts: 30d IBC Network Stats from July to August. 🔥
Let’s explore the @mapofzones 👇
This month, 118 networks were actively connected through IBC and processed $1.03 billion in transaction volume.@osmosiszona conducted the largest volume of IBC… pic.twitter.com/bgav1S9Oh7
-IBC (@IBCProtocol) August 28, 2024
This contributed to the most recent conquest: reaching 2.3 million monthly active accounts and over $1 billion in transfers. The achievement comes after the network reached over 118 networks connected through IBC this month.
By far, Cosmos’ biggest achievement is the growing adoption of IBC as a cross-chain communication standard. IBC’s security, while being flexible and scalable, makes it a compelling solution for cross-chain communication.
Cosmos: $4.6 Reveals Significant Hurdle to ATOM’s Upside Potential
ATOM is struggling to control $4.6 in the short term as bulls attempt to flip it into support. This bullish behavior suggests that investor sentiment has been strengthened by recent on-chain developments that have taken place over the past 2 weeks.
Related Reading
That leaves investors with an open path to $6, but before that potential is realized, ATOM bulls should focus on the near-term move to $4.6 as a support level. The token has already revisited that price level twice; third if its current position is counted.
This makes $4.6 a significant support level and a hurdle for any potential upside. If the bulls fail to reach this price level, the bears will target $4. This puts ATOM at a significant disadvantage with no solid long-term support.
However, bullish success at this level bodes well for ATOM as the token will stabilize in the $4.6 to $5.1 range, giving enough wiggle room for short- to mid-term gains while also ensuring a long-term solution for a rally towards $6.
Featured image from Medium, chart from TradingView