The host of widespread YouTube channel Coin Bureau says that Ethereum (ETH) might assist pull up the worth of Cosmos (ATOM) with its extremely anticipated improve.
In a brand new video replace, the pseudonymous analyst often called Man tells his 2.1 million subscribers that demand for ATOM has slumped dramatically in the course of the bear market and at present depends on two fundamental drivers.
“What’s even scarier although is that there isn’t a lot occurring on the demand facet of ATOM’s financial equation. As heartening as it’s that the entities behind the venture have apparently stopped promoting, it additionally implies that improvement of demand drivers has slowed…
“It seems that ATOM’s strongest demand driver nowadays is all the continued airdrops for up-and-coming Cosmos initiatives, together with Jae Kwon’s GNO Land, that are solely given to those that maintain or stake ATOM in taking part wallets resembling Keplr pockets.
A secondary demand driver for ATOM is as a bridge foreign money to all of the up-and-coming Cosmos ecosystems on extra basic use case blockchains resembling Evmos and Kava, which help Ethereum sensible contracts and have seen lots of of hundreds of thousands of {dollars} in complete worth locked.”
The analyst says that ATOM nonetheless has the potential to thrive if its present development continues, and if Ethereum’s long-awaited transition to proof-of-stake consensus mechanism goes easily.
“Now, despite the fact that ATOM seems to have restricted demand drivers, they’ve been sufficient to push its worth larger over the previous couple of months and if this development continues, we may see ATOM pull near a 2x within the quick to medium time period.
This actually will depend on whether or not Ethereum’s upcoming transition to proof of stake later this month manages to trigger a broader crypto market rally.”
Cosmos is altering fingers for $12.74 at time of writing, a 1.4% dip on the day.
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