3 reasons why Cosmos (ATOM) could rally 1,200% by 2030 

Cosmos, 3 reasons why Cosmos (ATOM) could rally 1,200% by 2030 

YEREVAN (CoinChapter.com) – Cosmos (ATOM) suffered two rough quarters along with the rest of the crypto market. The digital asset dropped over 75% since its Sep 2021 all-time high and traded at $10.7 on Aug. 19. However, experts at global asset manager VanEck believe Cosmos has the potential to balloon 1,200% and reach $140 by 2030. Here are three reasons behind the outlook.

Cosmos (ATOM) daily price chart. Source: TradingView.com
Cosmos (ATOM) daily price chart. Source: TradingView.com

#1 Cosmos Layer-0 utility

To better grasp the current and future demand for layer-0 platforms, it is essential to differentiate them from layer-1s. In detail, a layer-one blockchain hosts decentralized apps (dApps) and enables payments between users, typically through its utility token.

Conversely, a layer-0 platform, such as Cosmos, Avalanche, or Polkadot, coordinates a network of computers, where several layer-1 blockchains can deploy their data and perform transactions. In a way, layer-0 ties blockchains, enabling their interconnectivity.

The Cosmos Hub’s target market is the blockchains that make up the Cosmos ecosystem of blockchains. Notably, 48 of the 49 blockchains that populate “the Cosmos” are written using the Cosmos Software Development Kit (SDK). The tool is in high demand as of 2022, and VanEck sees the demand rising as blockchain technology develops.

We predict that[…], 10% of the transactions of the financial services industry including commercial and retail banking, trade finance, financial exchanges, wealth management, and cross-border payments will be settled using public blockchains by the year 2030. 

predicted the asset manager.

#2 Metaverse and Gaming progress

Given the rapid development and growing interest in play-to-earn gaming, VanEck saw heightened demand for public blockchains in this sphere. The authors believe Cosmos, as a layer-0 solution, could be an “ideal settlement and storage layer for immutable global repositories of digital identity.” Additionally, it would be “perfect” for social graphs, gaming assets, and the property rights to digital assets.

According to estimations, 50% of the gaming market could utilize the public blockchains by 2030. If the prediction pans out, Cosmos and its ATOM token could see higher demand and, by extension, higher price per token.

We forecast Metaverse and Gaming to be a $4.1T market by 2030, which implies blockchain revenue from this segment to be $82B annually.

concluded VanEck experts.

#3 Coordination of digital infrastructure services

Public blockchains like Cosmos could become the optimal mechanism to globally coordinate various business and retail digital infrastructure services. The services such as cloud data storage and cloud computing could gain from utilizing blockchain technology.

VanEck experts classified these sleeves of businesses for crypto usage under the category of Web Infrastructure. They also forecasted that 10% of the aforementioned services will be allocated utilizing public blockchains by 2030.

If that scenario plays out, Cosmos and other layer-0s could derive revenue equal to 1% of the Web Infrastructure revenues deployed to them.

With total Web Infrastructure revenue expected to be $2T, we calculate $20B of revenue annually accruing to blockchain through transaction tolls.

concluded the research.

Also read: Bitcoin (BTC) Drops 7%, Why Recent Breakdown Could Gather Momentum.

Taking into account the mentioned research, Cosmos’ ATOM price could balloon up to $140 by the year 2030, ensuring a $1,200% value increase in 8 years. However, the crypto market depends on the broader fiat economy, which hinders making long-term predictions.

Leave a Comment

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com WestcoastNFT.com