Cosmos one of few gainers today, surges 8% in Asian hours

The token of blockchain Cosmos (ATOM/USD) gained as much as 8% early today as investors wagered on further upside for the high-speed blockchain, CoinDesk reported. This ranked ATOM among the few gainers on an otherwise gloomy day for the crypto market.

Reversing on recent gains

Last week, ATOM prices reached an all-time high of $45. Amid a broader market drop, they have since fallen 25%. During early Asian trading hours on January 24, ATOM rose to $35.22, up from $28 on Sunday. Its price faced resistance at that level and fell thereafter.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

At the time of writing, ATOM was trading at $30.65 and had lost around 7% of its value, which is among the smallest losses sustained by a top 100 coin.

Growth factors

Growth factors include a bridge implementation between Cosmos and Polkadot (DOT/USD) and upcoming airdrops to Cosmos stakers. Bridges connect and transfer data between two blockchains.

Tokens of Cosmos protocols gaining as well

On Monday morning, the biggest winners were tokens of protocols running on Cosmos that were previously airdropped to stakers even as the wider market saw nominal losses.

These included tokens of Stargaze (STAR), Juno Network (JUNO), and Comdex (CMDX). They are DeFi-centered tokens running on the Cosmos blockchain. They gained up to 6% in the past 24 hours, according to data from CoinGecko.

Airdrops are a milestone for stakers

The airdrops are a milestone for Cosmos stakers in a planned process. As a proof-of-stake blockchain, Cosmos relies on validators, which make computing resources available by locking up ATOM in nodes in exchange for token rewards. The nodes keep the network running and process transactions.

Cosmos projects provide extra yield

Cosmos projects provide additional yields to users. Based on the total amount staked, native projects automatically airdrop tokens to Cosmos stakers, which leads to additional value for ATOM holders.

According to Delphi Digital analysts, the upcoming EVMOS launch has piqued investor interest for Cosmos. They wrote last week:

Cosmos has been the talk of the town lately with the impending EVMOS launch this month also driving attention. EVMOS (previously Ethermint) will allow EVM-compatible applications to integrate into the Cosmos ecosystem.