Cosmos’ ATOM token rises amid weak crypto market; here’s why it’s defying the trend

cnbctv18.com:

The cryptocurrency market started off the new year on a tepid note. Most top cryptos including bitcoin and ether have been under pressure. However, one token that seems unfazed by the broader market direction is Cosmos’ native token ATOM.ATOM has gained nearly 790 percent in a year and nearly doubled in the last month.

But why has it been defying the market trend? There might be multiple factors for it, starting with the nature of the Cosmos network itself.The Cosmos project claims to solve one of the biggest problems in the blockchain industry, interoperability or the process of operations between two or more blockchains. It aims to address issues in the blockchain space like scalability, cost and environmental impact by offering an ecosystem of connected blockchains.One of the major concerns is the levels of fragmentation seen in blockchain networks. There are hundreds of blockchains but only a few can efficiently communicate with each other.

Cosmos is looking to address this problem by establishing an Interblockchain Communication protocol.Also Read: Cryptocurrency update: Bitcoin slips to 3-month low; falls below $40000This emphasis on interoperability seems to be attracting new investors. Ganesh Kompella, Venture Partner, Tykhe Block Ventures told The Economic Times, “Cosmos is one of the top protocols with interoperability and cross-chain capabilities. Practically every smart crypto investor or trader talks about it.”Another contributing factor is Cosmo’s launch of Evmos, an application-agnostic chain linked to the crypto.