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Cosmos’ Ecosystem Growth: Will ATOM Sustain its 50% Monthly Rally?

• The Interchain Foundation, the team behind Cosmos, proposed a tokenomics upgrade to fund ecosystem development in September 2022.
• ATOM’s price saw a bullish breakout in the first week of February 2021 and further upside could be sustained by strong fundamentals in the Cosmos Ecosystem.
• Interchain Security is expected to bring additional staking rewards for ATOM holders upon its implementation on the mainnet.

Cosmos’ Upcoming Tokenomics Upgrade

In September 2022, Interchain Foundation, the team behind Cosmos, introduced a white paper proposing significant changes to Cosmos’s design. This included an upgrade to its tokenomics with the aim of funding ecosystem development and reducing inflation. Although this proposal was not passed by community members due to its enormity, work on these upgrades continues nevertheless.

ATOM Price Rally

The launch of the white paper acted as a bullish catalyst for ATOM’s price and it experienced further growth when buyers continued to accumulate over January 2021. As such, ATOM gained around 50% within the month and could potentially see more upside if market trends remain bullish for some time.

Interchain Security

The most crucial breakthrough that will accrue value to ATOM holders is interchain security which will enable independent blockchains (known as consumer chains) within the Cosmos ecosystem to rent security from hub validators of Cosmos and receive staking rewards for doing so. In order to test this feature before rolling out onto mainnet, an event called “Game of Chains” was concluded by the team in January 2021 where existing SDK-based blockchains were invited as participants.

Lambda Upgrade (v9)

The lambda upgrade (v9) is set to introduce interchain security sometime in February 2021 along with other improvements mentioned in Cosmos 2.0’s white paper that have been separated into their own proposals before being passed by community members individually instead of all at once like initially intended.


Overall, if market trends remain positive there is potential for further upside in ATOM’s monthly rally since there are strong enough fundamentals present within the Cosmos ecosystem that could sustain it — most notably interchain security which will bring additional staking rewards for holders upon its implementation on mainnet sometime next month as part of lamba upgrade v9 .