Cosmos Records 20% Gain, What’s Behind The Boom In Its Ecosystem

Reynaldo Marquez

3 years ago

3 mins read

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The Cosmos ecosystem has seen an explosion of interest in the past year. Projects like Terra (LUNA) have increased its numbers of users and will continue to boost its position in the crypto space as its ecosystem keeps expanding.

As of press time, Cosmos (ATOM) trades at $32,57 with a 7% profit in the past 24 hours. The cryptocurrency follows the general sentiment in the market, as Bitcoin (BTC), Ethereum (ETH), and other large cryptocurrencies trend to the upside in lower timeframes.

Cosmos ATOM ATOMUSDT — ATOM with bullish momentum on the daily chart. Source: ATOMUSDT Tradingview

In an official blog post, the team behind Cosmos recently announced the new project to be release as testnets in 2022. The team celebrated Terra, Secret Network, Osmosis, and other projects in the ecosystem and announced others that will be introduce this year. The team said:

Many up-and-coming projects are running testnets and incentivized testnets that will precede their debuts to mainnet this year.

A testnet, as explained by the post, are a widely use tool for internet development. They let developers test upgrades, products, and more before deploying on a mainnet. A test network or testnet simulate that original environment to carry out such test under similar conditions as if they were already deployed.

Developers and users benefit from testnets because it allows the former to discover and fix bugs and issues, improve user experience, and the latter to leverage a clean and battle tested software. The Cosmos ecosystem holds over $100 billion in terms of total value locked, testnets provide an additional layer of development to guarantee its safety and optimal stability. The team said:

Over the years, Cosmos testnets have proven to be extensively successful in many areas, such as uncovering issues with the consensus engine, state machine, and even the operational setup of validators.

Top Projects To Watch On Cosmos For 2022

Amongst the projects cited by the Cosmos team, there is Archway. This incentivized smart contract platform will provide the ecosystem with CosmWasm integration and enable direct developer reward into the protocol. In that way, developers, users, and early investors will receive a share of the rewards from launching a product.

Archway will launch “Augusta”, its first incentivized testnet in March 2022. Users will have a chance at earning rewards during this tesnet’s different stages.

In addition, Archway will be accompanied by Celestia, Cosmos’ first “modular blockchain network”. This platform will allow developers to deploy their own virtual machines without, according to the post, having to “bootstrapt their own consensus network”. Thus, bringing new dApp possibilities into the ecosystem.

The project is currently on its devnet phase, but once deployed it’ll let applications to maintain a high level of sovereignty and security with a high degree of scalability. Celestia’s public testnet is set to be rollout at some point in Q2, 2022.

Moreover, the Cosmos will see the launch of Tgrade, the “first regulated DeFi platform”, the protocol will operate with a mix between Proof-of-Stake (PoS) and Proof-of-Engagement (PoE). Unlike regular PoS project, Tgrade will reward all of its community via its PoE mechanism.

Related Reading | Terra (LUNA) Holders Approve New Sports Sponsorship Deal

Finally, this ecosystem will see the rollout of Umee with an incentivized testnet for its lending and borrowing platform. However, many more projects will be introduced via tesnets and on the mainnet making this network one to continue to watch on 2022 and beyond.

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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