ATOM RALLIES 100% IN A WEEK: WHATS BEHIND THE RERATING OF COSMOS?

Last updated: June 20, 2025, 00:19 | Written by: Brian Kelly

The cryptocurrency market is a whirlwind of activity, and in the past week, one token has been making significant waves: ATOM, the native cryptocurrency of the Cosmos blockchain protocol. The most recent news about crypto industry at Cointelegraph. Latest news about bitcoin, ethereum, blockchain, mining, cryptocurrency prices and moreSurging by over 100%, ATOM has captured the attention of investors and analysts alike.But what's driving this dramatic rerating of Cosmos?In a landscape where fortunes can shift in an instant, understanding the fundamental forces behind such movements is crucial. ATOM, a criptomoeda nativa do protocolo de blockchain do Cosmos, subiu mais de 100% na semana passada. Os analistas est o atribuindo a alta do ATOM a dois fatores fundamentais principais. Primeiro, nas ltimas semanas, os protocolos de blockchain da camada um, como Avalanche (AVAX) e Polkadot (DOT), passaram por uma grande reformula o.While other layer-one blockchain protocols like Avalanche (AVAX) and Polkadot (DOT) have witnessed similar re-evaluations, Cosmos's unique ecosystem and technological advantages are playing a significant role.Is this just a flash in the pan, or does it signal a longer-term trend?We'll delve into the key factors fueling this rally, explore the potential for further growth, and examine what this means for the future of Cosmos and the broader blockchain space.Get ready to unpack the details behind the ATOM surge and discover what's next for this promising cryptocurrency.

Decoding the Cosmos Rally: Key Catalysts

Analysts are pointing to two primary fundamental factors as the drivers behind ATOM's impressive performance.Let's break down each of these catalysts and understand their impact on the market's perception of Cosmos.

Layer One Blockchain Rerating

In recent weeks, a broader trend has emerged within the cryptocurrency market: a significant rerating of layer one blockchain protocols. ATOM, the native token of the Cosmos blockchain, has ralled strongly in the past week for several fundamental reasons. ATOM, the native cryptocurrency of the Cosmos blockchain protocol, has rallied by over 100% in the past week.Avalanche (AVAX) and Polkadot (DOT) have both experienced substantial price increases, signaling a renewed interest in these foundational technologies.But what does this ""rerating"" actually mean?

It represents a reassessment of the value proposition and potential of these blockchains.Investors are recognizing the importance of robust and scalable layer one solutions as the foundation for decentralized applications (dApps) and the wider Web3 ecosystem. Bitcoin for Corporations About SocialsThis renewed focus has led to increased demand and, consequently, higher prices for the native tokens of these protocols.

Cosmos, as another prominent layer one blockchain, is benefiting from this broader trend.The market is recognizing its potential as a key player in the blockchain infrastructure space, driving up demand for ATOM.

The Growing Utility of ATOM within the Cosmos Ecosystem

Beyond the general layer one rerating, ATOM possesses its own unique set of drivers. ATOM is the native cryptocurrency of Cosmos and serves as the gateway to the Cosmos ecosystem. Boasting a market capitalization of $2.2 billion as of Nov. 1, 2025, cosmos is trading at $7.626 per unit, with 292 million ATOM in circulation.One of the most significant is the increasing utility of ATOM within the Cosmos ecosystem. ATOM rallies 100% in a week: What s behind the rerating of Cosmos? ATOM, the native cryptocurrency of the Cosmos blockchain protocol, has rallied by over 100% in the past week. Analysts are attributing the rally of ATOM to two major fundamental factors. First, in recent weeks, layer one blockchain protocols, like Avalanche (AVAX) and PolkadotThis ecosystem is not just a single blockchain, but rather a network of interconnected blockchains, often referred to as the ""Internet of Blockchains.""

Here's how ATOM's utility is growing:

Staking Rewards: ATOM holders can stake their tokens to help secure the Cosmos Hub, the central chain within the ecosystem, and earn rewards in return. ATOM, the native token of the Cosmos blockchain, has ralled strongly in the past week for several fundamental reasons. ATOM, the native cryptocurrency ofThis incentivizes long-term holding and reduces the circulating supply.
Governance: ATOM holders have the power to participate in the governance of the Cosmos Hub, influencing the direction of the project and making important decisions about its future. Cosmos (ATOM) recently broke out of a descending channel, signaling a potential upward momentum. With an immediate resistance level at $5.47 and a stronger one at $6.16, Cosmos has room to grow. Analysts are eyeing a potential rally up to $7.69.This gives ATOM holders a voice and a stake in the success of the ecosystem.
Interchain Security (ICS): This upcoming feature will allow the Cosmos Hub to provide security to other chains within the ecosystem.These chains will pay the Cosmos Hub in ATOM, further increasing its demand and utility. Skip to main content Bitcoin Insider. MenuThis is a game-changing development that could significantly boost the value of ATOM.

The development and implementation of Interchain Security (ICS) is a monumental shift for the ecosystem. ATOM, the native cryptocurrency of Cosmos blockchain protocol, has risen more than 100% last week. Analysts attribute the concentration of the ATOM to two main fundamental factors. First, in recent weeks, layer 1 blockchain protocols such as Avalanche (AVAX) and Polkadot (DOT) have undergone significant reworking.It allows new blockchains to bootstrap security by leveraging the already established and secure Cosmos Hub. ATOM rallies 100% in a week: What s behind the rerating of Cosmos?This greatly simplifies the process of launching a new blockchain and encourages further growth and adoption within the Cosmos network. ATOM, the native token of the Cosmos blockchain, has been rallying strongly for two fundamental reasons. $ BTC $59,459 ; ETH $3,840 ; XRP $1.15 ; BCH $628 ; XMR $269.8 ;ICS directly increases the demand for ATOM as new chains are required to pay for the security services provided by the Cosmos Hub.

Cosmos Technical Analysis: Breaking Down the Price Action

Beyond the fundamental factors, the technical analysis of ATOM also paints a bullish picture. Cosmos recently broke out of a descending channel, a technical pattern that often signals a potential upward momentum shift. ATOM, the native cryptocurrency of the Cosmos blockchain protocol, is up more than 100% in the past week. Analysts attribute ATOM s rally to two key fundamentals. First, layer one blockchain protocols such as Avalanche (AVAX) and Polkadot (DOT) have undergone a major revaluation in recent weeks.This breakout suggests that the selling pressure that had been weighing on ATOM is starting to dissipate, and buyers are gaining control.

Key resistance levels to watch are:

$5.47: An immediate resistance level that ATOM needs to overcome to continue its upward trajectory.
$6.16: A stronger resistance level that, if breached, could pave the way for further gains.

Analysts are eyeing a potential rally up to $7.69. ATOM, the native cryptocurrency of the Cosmos blockchain protocol, has rallied by over 100% in the past week. Analysts are attributing the rally of ATOM to two major fundamental factors.However, as with all cryptocurrencies, there is no guarantee of future performance.Market conditions can change rapidly, and technical analysis should be used in conjunction with fundamental analysis to make informed investment decisions.

Remember that volatility is inherent to the cryptocurrency market. ATOM, the native cryptocurrency of the Cosmos blockchain protocol, has rallied by over 100% in the past week. Analysts are attributing the rally of ATOM to two major fundamental factors. First, in recent weeks, layer one blockchain protocols, like Avalanche (AVAX) and Polkadot (DOT) have gone through a major rerating. Second, the utility of ATOMIt is crucial to conduct thorough research, understand your risk tolerance, and never invest more than you can afford to lose.

Cosmos vs. What s behind the rerating of Cosmos? bitcoin cosmos crypto cryptocurrencies market virtualcurrencies whatsOther Layer One Blockchains: A Comparative Analysis

While ATOM is experiencing a rally, it's important to consider its position within the broader landscape of layer one blockchains. ATOM, the native cryptocurrency of the Cosmos blockchain protocol, has rallied by over 100% in the past week. Analysts are attributing the rally of ATOM to two major fundamental factors. First, in recent weeks, layer one blockchain protocols, like Avalanche (AVAX) and Polkadot (DOT) have gone through a major rerating.How does it compare to other prominent players like Avalanche (AVAX), Polkadot (DOT), and even Ethereum (ETH)?

Each of these blockchains has its own unique strengths and weaknesses:

Ethereum (ETH): The dominant layer one blockchain, with the largest ecosystem of dApps and developers. ATOM rallies 100% in a week: What s behind the rerating of Cosmos? ATOM, the native cryptocurrency of the Cosmos blockchain protocol, has rallied by over 100% in the past week. Analysts are attributing the rally of ATOM to two major fundamental factors.However, Ethereum has historically struggled with scalability and high transaction fees, although upgrades like the Merge are addressing these issues.
Avalanche (AVAX): A fast and scalable blockchain that offers a unique consensus mechanism. M s importante a n, en comparaci n con otros protocolos de cadena de bloques de capa uno, Cosmos tiene importantes plataformas descentralizadas y proyectos de cadena de bloques lanzados sobre l. Proyectos sobre Cosmos m s valorados que ATOM. En particular, Terra y Binance Smart Chain se basan en la cadena de bloques Cosmos. La valoraci nAvalanche has gained popularity for its support of subnets, which allow developers to create customized blockchains tailored to specific applications.
Polkadot (DOT): A blockchain that focuses on interoperability, allowing different blockchains to connect and communicate with each other.Polkadot uses a parachain structure, where different blockchains (parachains) connect to a central relay chain.
Cosmos (ATOM): Like Polkadot, Cosmos also focuses on interoperability, but with a slightly different approach.Cosmos uses the Inter-Blockchain Communication (IBC) protocol to enable different blockchains (zones) to connect and exchange data.The focus on sovereign blockchains sets it apart.

Compared to other layer one blockchain protocols, Cosmos has a significant amount of decentralized applications and blockchain projects built on it.Notably, Terra (now defunct, but highlighting the potential) and Binance Smart Chain were built using the Cosmos SDK, showcasing the technological capabilities and development opportunities offered by Cosmos.However, a notable point is that projects built on Cosmos often have valuations exceeding that of ATOM itself, meaning value is accruing to the application-specific blockchains rather than the central hub.The introduction of ICS aims to address this dynamic, ensuring that ATOM accrues more value from the overall ecosystem.

The Future of Cosmos: What Lies Ahead?

The recent rally of ATOM is a positive sign for the Cosmos ecosystem, but what does the future hold?Several factors suggest that Cosmos has significant potential for continued growth:

Interchain Security (ICS) Adoption: As more blockchains adopt ICS, the demand for ATOM is likely to increase, driving up its price.
Growth of the Cosmos Ecosystem: The continued development and deployment of new dApps and blockchains within the Cosmos ecosystem will further strengthen its network effect and attract more users and developers.
Increased Interoperability: As the blockchain space becomes increasingly fragmented, interoperability solutions like IBC will become even more valuable. Cosmos's focus on connecting different blockchains positions it well for future success.

However, there are also potential challenges that Cosmos needs to address:

Competition from other layer one blockchains: The layer one blockchain space is highly competitive, and Cosmos needs to continue innovating to stay ahead of the curve.
Regulatory uncertainty: The regulatory landscape for cryptocurrencies is still evolving, and uncertainty could impact the growth of the Cosmos ecosystem.
Security risks: As with any blockchain network, security vulnerabilities could pose a threat to the Cosmos ecosystem.

Despite these challenges, the future of Cosmos looks bright.Its focus on interoperability, its growing ecosystem, and the upcoming launch of ICS all suggest that Cosmos has the potential to become a major player in the blockchain space.

Understanding the Cosmos Ecosystem: A Deeper Dive

To truly understand the potential of ATOM, it's essential to delve deeper into the intricacies of the Cosmos ecosystem.What exactly makes it unique, and how does it function?

The Internet of Blockchains

The core vision of Cosmos is to create an ""Internet of Blockchains,"" a network of interconnected blockchains that can communicate and transact with each other.This is in contrast to the traditional model of isolated blockchains, which operate in silos and cannot easily interact.

Cosmos achieves this interoperability through the Inter-Blockchain Communication (IBC) protocol.IBC allows different blockchains (zones) to connect to the Cosmos Hub and exchange data and assets.This creates a network of interconnected blockchains that can work together to create new and innovative applications.

The Cosmos SDK

The Cosmos SDK is a modular framework that simplifies the process of building custom blockchains.It provides developers with a set of pre-built modules that they can use to create their own blockchains, without having to write all the code from scratch.This significantly reduces the time and effort required to launch a new blockchain.

The Cosmos SDK is designed to be highly customizable, allowing developers to tailor their blockchains to specific applications.This flexibility is one of the key advantages of the Cosmos ecosystem.

Tendermint BFT

Tendermint BFT is a Byzantine Fault Tolerant (BFT) consensus engine that is used by the Cosmos Hub and many other blockchains within the Cosmos ecosystem.Tendermint BFT is known for its speed, security, and scalability.It allows blockchains to achieve consensus quickly and efficiently, even in the presence of malicious actors.

Investing in ATOM: Risks and Rewards

Investing in any cryptocurrency, including ATOM, involves inherent risks and potential rewards.It's crucial to carefully consider these factors before making any investment decisions.

Potential Rewards

Price Appreciation: As discussed earlier, ATOM has the potential for significant price appreciation, driven by the growth of the Cosmos ecosystem, the adoption of ICS, and the overall rerating of layer one blockchains.
Staking Rewards: Staking ATOM can generate passive income in the form of staking rewards.These rewards can help to offset the risks of investing in ATOM and provide a steady stream of income.
Governance Participation: Holding ATOM gives you the right to participate in the governance of the Cosmos Hub.This allows you to influence the direction of the project and make important decisions about its future.

Potential Risks

Volatility: The cryptocurrency market is highly volatile, and the price of ATOM can fluctuate significantly in short periods of time.This volatility can lead to significant losses for investors.
Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is still evolving, and uncertainty could negatively impact the growth of the Cosmos ecosystem and the price of ATOM.
Security Risks: As with any blockchain network, security vulnerabilities could pose a threat to the Cosmos ecosystem.These vulnerabilities could lead to the loss of funds for ATOM holders.
Competition: The layer one blockchain space is highly competitive, and Cosmos faces competition from other prominent players.This competition could limit the growth of the Cosmos ecosystem and the price of ATOM.

Before investing in ATOM, it's essential to conduct thorough research, understand your risk tolerance, and consult with a qualified financial advisor.Never invest more than you can afford to lose.

Frequently Asked Questions (FAQs) About Cosmos and ATOM

Here are some frequently asked questions about Cosmos and ATOM, along with their answers:

What is Cosmos?

Cosmos is a decentralized network of independent, scalable, and interoperable blockchains, envisioned as the ""Internet of Blockchains."" It enables different blockchains to communicate and transact with each other.

What is ATOM?

ATOM is the native cryptocurrency of the Cosmos Hub, the central chain within the Cosmos ecosystem.It is used for staking, governance, and securing the Cosmos network.

What is Interchain Security (ICS)?

Interchain Security (ICS) is a feature that allows the Cosmos Hub to provide security to other chains within the Cosmos ecosystem.These chains pay the Cosmos Hub in ATOM, further increasing its demand and utility.

How can I stake ATOM?

You can stake ATOM through various cryptocurrency exchanges, wallets, and staking providers.Staking involves delegating your ATOM to a validator who helps secure the network and earns rewards on your behalf.

What are the benefits of staking ATOM?

The benefits of staking ATOM include earning staking rewards, participating in governance, and helping to secure the Cosmos network.

What are the risks of staking ATOM?

The risks of staking ATOM include potential slashing penalties (loss of staked ATOM) if the validator you delegate to misbehaves, and the possibility of your ATOM being locked up for a certain period of time.

Conclusion: Is the Cosmos Rerating Sustainable?

The recent 100% rally of ATOM is a testament to the growing recognition of Cosmos's potential as a key player in the blockchain space.Fueled by the broader layer one blockchain rerating and the increasing utility of ATOM within the Cosmos ecosystem, the rally has captured the attention of investors and analysts alike.

Key takeaways from this analysis include:

ATOM's rally is driven by both macro-level factors (layer one rerating) and micro-level factors (growing utility of ATOM).
Interchain Security (ICS) is a game-changing development that could significantly boost the value of ATOM.
The Cosmos ecosystem is built on the principles of interoperability and modularity, which give it a competitive advantage.
Investing in ATOM involves inherent risks and potential rewards, and it's crucial to conduct thorough research before making any investment decisions.

Whether the current rerating of Cosmos is sustainable remains to be seen.The cryptocurrency market is notoriously volatile, and unforeseen events could impact the price of ATOM.However, the underlying fundamentals of the Cosmos ecosystem are strong, and the project has a clear vision for the future.With continued innovation, adoption of ICS, and growth of its ecosystem, Cosmos has the potential to become a dominant force in the blockchain space.If you are interested in learning more about Cosmos and the ATOM token, consider exploring resources like the official Cosmos website and reputable crypto news outlets.Always do your own research before making any investment decisions.

Disclaimer: This article is for informational purposes only and should not be considered financial advice.Investing in cryptocurrencies involves significant risks, and you could lose all of your investment.