A day after the highly anticipated merger, many cryptocurrencies lost more than they gained. The entire market is red and even the top performers are showing no signs of rising prices. Many investors predicted a downward trend reversal after Ethereum upgraded to a proof-of-stake mechanism.
But right now, the opposite is happening. For example, the number one crypto remained red in its price gains in 1 hour, 24 hours and 7 days. Currently, the bitcoin price is $19,659.95, which is a 2% loss in 24 hours.
Related reading: Ethereum faces post-merger survival test, can $1,400 support hold?
Data from September 16 shows that bitcoin lost 0.61% in 1 hour, 1.88% in 24 hours and 6.26% in 7 days.
Apart from Bitcoin, Ethereum lost more. The price of ETH is currently at $1,451.49, moving away from the previous $1,700+. The merger did not lead to higher prices as many had expected.
But while many cryptos are seeing price declines, Cosmos ATOM has continued its gains.
Cosmos ATOM wins amid falling prices
Cosmos ATOM Awards currently sits at $16.16 after adding 11.49% in the last 24 hours. The piece ranks number 20 on the CoinMarketCap cryptographic classification. ATOM has seen some price growth over this period, even when others are struggling.
Its price chart for today, September 16, showed a continued rise in green. There were some dips, but not in the red zone. For example, ATOM’s price stopped at $14.65 on September 15th. This morning it rose to $14.73 and continued to climb to its current price of $16.16 at press time.
Analysts studying the price movement noted that ATOM’s highs and lows remained within the ascending trend lines of the channel. Further, the price recorded a bullish break outside the channel and traded a 200-day moving average before correcting to the middle line and 20-MA, confirming every support.
After testing support, ATOM price continued its uptrend and is trading at the high end of the current range. Analysts think it might retest the 200-day MA to tip its level towards support.
What factors drive Cosmos Coin
Many factors could be related to the growth of ATOM. One such event is the move of many protocols from Terra to the Cosmos Hub SDK. In early September, Delphi Digital announced that it would be building new projects on the Cosmos network.
As more and more DeFi protocols and decentralized applications (DApps) flood the ecosystem and participate in its cross-chain security system, the ATOM value is skyrocketing. AMMs, DeFi, and DApps operating on the network increase stakes and fees, thereby increasing staker rewards.
Related reading: Why Cardano (ADA) Could Record Another Decline, Says Analyst
The data reveals that ATOM offers 17.75% APY and 66.75% of coins in circulation are staked. Additionally, Cosmos plans to launch a liquid staking feature that will increase buying pressure on ATOM when rolled out to DeFi platforms through blockchains.
All of this increased activity in the ecosystem is pushing ATOM prices higher. Analysts expect to see more gains as the network grows.
Featured image from Pixabay and chart from TradingView.com