Why Cosmos’ ATOM Cryptocurrency Is Climbing

What occurred

Cosmos (CRYPTO:ATOM) lately introduced the launch of a brand new blockchain community, and its ATOM cryptocurrency token is climbing in consequence. ATOM was up roughly 6.1% over the earlier 24 hours as of 4:45 p.m. EDT.

The Cosmos crew introduced on Oct. 19 that it could be launching a brand new blockchain dubbed Sagan. The brand new blockchain community, which is called after astronomer Carl Sagan, shall be used for utility testing and experimentation.

Picture supply: Getty Photos.

So what

Cosmos did not share a lot details about Sagan. The brand new blockchain community was teased on the finish of a convention held by the crew, and traders and builders are nonetheless largely at the hours of darkness in regards to the specifics. Whereas not a lot is understood in regards to the upcoming blockchain, its announcement factors to a brand new use case for Cosmos’ ATOM token.

Cosmos’ present core service revolves round permitting customers and builders to trade and combine information throughout decentralized blockchains, and the ATOM token is to pay the price of these functions and actions and keep the community. Sagan’s debut teaser prompt that the crew’s new blockchain shall be used as a testing floor for options and functions, and ATOM might play an identical function on the brand new community.

Now what

The crypto market has boomed this 12 months amid rising curiosity in blockchain-based functions and providers. Rising issues about inflation and volatility in equities markets have additionally prompted funding {dollars} to pour into the cryptocurrency area, and Cosmos and its ATOM token have benefited from this number of tailwinds.

If blockchain functions proceed to realize vital traction, Cosmos’ capacity to let customers share information throughout networks and check functions might assist energy extra demand for the ATOM token. Nonetheless, understand that the crypto market tends to be risky, and ATOM stays a high-risk funding.

This text represents the opinion of the author, who could disagree with the “official” suggestion place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even one among our personal — helps us all suppose critically about investing and make selections that assist us grow to be smarter, happier, and richer.

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