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Highlights
- Cosmos (ATOM) took a dive overnight despite a period of steady growth
- Cosmos allows users and developers to exchange and integrate data across decentralized blockchains
- Earlier this month, The Cosmos team announced the development of a new blockchain, which would be used for application testing and experimentation
Cosmos (ATOM) has lost nearly 15 percent in the past 24 hours. The 26th largest cryptocurrency fell despite having a jump of around 11 percent on Monday.
The size of the drop is somewhat unexpected given its upward trajectory over the past two weeks.
What is Cosmos?
Cosmos allows users and developers to exchange and integrate data across decentralised blockchains with ATOM being the platform’s native token.
The current Cosmos platform hosts over 250 decentralised applications (DApps) and services and has a market cap value of US$10,445,378,198 and is ranked 26th largest crypto in terms of market capitalisation, according to CoinMarketCap.
The Sagan Blockchain
Earlier this month, on October 19, Cosmos announced the launch of a new blockchain named after astronomer Carl Sagan, appropriately dubbed Sagan. The Cosmos team announced at a conference, the new blockchain network would be used for application testing and experimentation.
The Sagan blockchain teaser, revealed at the end of the conference, said ATOM could play a similar role on the new network suggested that the Sagan blockchain will be used for features and applications.
However, apart from this, there hasn’t been much more information shared about the new block chain and and investors and developers remain more or less in the dark about the specific purpose and development of the block chain, not to mention when it will be released.
Be that as it may, the announcement points to a new use case for Cosmos' ATOM token, which is likely the cause for its increase in value over the last couple of weeks.
Image source: © Kindersps | Megapixl.com
So Why The Drop?
The drop of 15 percent of overnight likely has more to do with Bitcoin’s current dip than it has to do with anything directly related to the Cosmos developed team.
Bitcoin sunk below US$60,000 to around US$59,000 where it currently sits. This latest drop comes after the world’s number one crypto reached a new all time high of US$66,500 last week. Since that peak, which was reached on October 21, it’s price has corrected US$7,500.
The typical result of a bitcoin price drop is that other cryptocurrencies follow suit. Indeed Ethereum - the second largest cryptocurrency has also dropped overnight as well as Dogecoin.
Is It a Good Time To Buy ATOM?
Cosmos is now priced at US$37.87 and despite losing big overnight seems to be rallying again. It might, therefore, be a good time to buy at the dip. With its proposed upcoming development – the Sagan Blockchain – it might especially be a good time to get in now.
