The market has been seen to further dip as major cryptocurrencies continue to fall towards their most recent support levels. This only amplified the losses of the altcoin market to bring tokens like Cosmos (ATOM) down to the ground. According to CoinGecko, the token has lost almost 23% since last month and drags any hope for recovery to higher price levels.
Related Reading
Despite its recent underperformance, the Cosmos ecosystem saw developments that may stem the bearish tide. However, it remains to be seen whether these recent on-chain developments have a definite effect on ATOM’s future performance.
Balanced DAO Adopts Inter-Blockchain Communication Protocol (IBC)
The official Cosmos X account recently 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 the IBC integration, @BalancedDAO brings its cross-chain DeFi platform to Cosmos SDK chains – with connections to @archwayHQ & @injective already live.
In the blog post below, learn more about Balanced ⬇️https://t.co/igDR3YdNfp
— Cosmos – The Interchain ⚛️ (@cosmos) August 27, 2024
According to their blog post, Balanced adopted the IBC as a means to connect to as many chains as possible, improving on-chain scalability while providing proportional security.
Impressively, the implementation phase of the IBC adoption went smoothly with developers on Balanced opened communication channels between the Balance chain and the IBC without requiring a hard fork for the network’s existing cross-chain connections. Cosmos benefits through Balanced’s large connection pool 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 – August. 🔥
Let’s explore the @mapofzones 👇
This month, 118 chains were actively connected through IBC and processed $1.03b in transaction volume.@osmosiszone drove the highest IBC volume… pic.twitter.com/bgav1S9Oh7
— IBC (@IBCProtocol) August 28, 2024
This contributed to Cosmos’s most recent achievement: reaching 2.3 million monthly active accounts and over $1 billion in transfers. The accomplishment comes after the fact that the network has reached over 118 chains connected through IBC this month.
Cosmos’s largest achievement by far is the growing adoption of IBC as a cross-chain communication standard. IBC’s security while still being flexible and scalable makes it an attractive solution for cross-chain communication.
Cosmos: $4.6 Reveals Significant Hurdle For ATOM’s Upside Potential
ATOM is wrestling control of $4.6 in the short term with the bulls attempting to flip it to support. This bullish behavior suggests that investor sentiment has been strengthened by the recent on-chain developments that occurred within the last 2 weeks.
Related Reading
This leaves investors with an open road toward $6, but before this potential is realized, ATOM bulls should focus on the short-term flip of $4.6 as a support level. The token revisited this price level two times already; third if its current position is counted.
This makes $4.6 both a significant support level and a hurdle for any upward potential. If the bulls fail to take this price level, the bears will eye $4 as a target. This places ATOM at a significant disadvantage with no solid support in the long term.
However, bullish success on this level bodes well for ATOM as the token will stabilize on the $4.6-$5.1 range, giving enough wiggle room for short and medium term gains while securing a long-term solution for a climb toward $6.
Featured image from Medium, chart from TradingView
Source: https://www.newsbtc.com/news/cosmos-atom-on-downward-spiral-with-23-losses-as-market-fud-worsens/