Why the Cosmos ATOM 2.0 White Paper Was a ‘Sell the News’ Event

On the current Cosmoverse convention, Cosmos launched a white paper with a brand new issuance mannequin for ATOM which goals to revamp the Cosmos Hub.

Whereas the Cosmos ATOM 2.0 white paper garnered a stupendous viewers was it merely a “Promote the Information” occasion?

The Cosmos Hub 2.0 white paper charts an up to date function for the Cosmos Hub as the middle of interchain security whereas additionally proposing key adjustments to ATOM’s utility and issuance schedule. 

Cosmos additionally plans to make alterations to its liquid staking protocol, the place solely a set quantity of ATOM could be issued per thirty days.

Moreover, governance can even bear key adjustments, and a governing physique referred to as “Cosmos Meeting” could be created quickly sufficient. 

Social volumes spikes, growth exercise slumps

The Cosmos ATOM 2.0 white paper whereas bringing basic adjustments to the blockchain and the ecosystem has additionally garnered respectable social media consideration, particularly on crypto Twitter. 

Social volumes famous a wholesome uptick after the announcement, nonetheless, social and retail euphoria like that seen in July remains to be lacking. 

Social Volumes and growth exercise ATOM | Source: Sanbase

Moreover, Cosmos’s growth exercise appeared to decelerate because the Cosmoverse Convention anticipation got here to an finish. The sudden drop in growth exercise might hinder the bigger worth development as properly, going ahead. 

ATOM dominating Layer 1 rivals

Amid the macro bear market, major Layer 1s are nonetheless being battered, however ATOM has, surprisingly, managed to remain afloat. When evaluating main L1s to their earlier ATHs in Nov. 2021, the vast majority of the tokens are deep in detrimental territory. 

ATOM, too, is down 71.33% from its all-time excessive worth, oscillating round $12.76 at press time. Nonetheless, ATOM has gained greater than 95% within the final three months, outperforming most L1s like MATIC, AVAX, BNB, and even ETH. 

Source: Delphi Digital

ATOM’s relative outperformance may be attributed, partly attributed to the announcement of Cosmos 2.0, in addition to the build-up to the annual Cosmos convention which occurred on Sept. 27. 

Till Sept. 27, greater than 66% of all ATOM was staked or delegated to validators, which additional goals to maintain the Cosmos infrastructure sturdy. 

ATOM/USDT buying and selling pair nonetheless struggling 

The reveal of the brand new white paper was anticipated to carry some appreciable worth adjustments within the optimistic course. Nonetheless, seemingly the Cosmoverse convention couldn’t ramp up worth motion with ATOM shedding over 12% worth at press time on a every day chart. 

ATOM/USDT Source: Trading View 

A major drop in ATOM’s every day RSI was indicative of upper sell-side stress because the social anticipation light away. The altcoin would wish some help from bulls to ascertain above the $13 resistance degree. 

Value time worth motion offered bearishness for the token. Additional sell-offs might pull ATOM’s worth again to the $12 zone.


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