Cosmos token unable to avoid wider market slide
Cryptocurrency falls by almost 10% after Sunday’s 8% surge
For a brief while on Sunday night, the Cosmos token (ATOM) stood at the vanguard of a short-lived resurgence in the cryptocurrency markets.
The native token of the Cosmos blockchain surged by as much as 8% to a high of $35.22, having earlier traded at around $28.
The wider crypto market has been in steady decline since mid-November. This trend has accelerated in the past week, driven by the Federal Reserve’s imminent raising of interest rates, the possibility of a regulatory crackdown in Russia and tensions in Kazakhstan and Ukraine.
At 11:00 GMT on Monday morning the total cryptocurrency market stood at $1.52trn, according to CoinMarketCap. The market has thus lost almost $500bn in value in the past week, and almost $1.5trn in value since its record high three months earlier.
Cosmos and DeFi
The 19th largest cryptocurrency in the world, with a market capitalisation of $8.6bn, Cosmos is a leading player in the realm of decentralised finance (DeFi). This trend seeks to disrupt the traditional financial system, reducing the number of third parties by increased use of automated smart contracts.
What is your sentiment on ATOM/USD?
A proof-of-stake blockchain, protocols and projects built on Cosmos automatically airdrop tokens to Cosmos stakers when they increase in value. This was the case on Sunday night, with a number of leading Cosmos-based tokens such as Stargaze (STAR) and Juno Network (JUNO) bucking the market’s downward trend.
Cosmos was ultimately unable to stem the flow, however. With leading cryptocurrencies such as bitcoin and ether falling to six-month lows on Monday morning, ATOM fell by 10.3% to $30.22.
The cryptocurrency has thus lost almost a third of its value less than a fortnight after reaching a near-record high of $44.45 after its inclusion as part of a 21 Shares exchange-traded product (ETP).