The recent uptrend of ATOM could be attributed to three major factors. The likely catalysts are the shifting narrative to scalability, a new decentralized finance (DeFi) protocol, and the perception of Cosmos as an alternative blockchain.
Blocktown Capital managing partner Joseph Todaro wrote:
“My scalability thesis kicks off with Cosmos. With ethereum transaction fees rising and a road map pushing into 2021, the narrative is shifting back to scalability today. Keep an eye on solid projects focused on scaling. They will start gaining considerable attention.”
Kelvin Koh, a partner at leading crypto fund based in Asia known as The Spartan Group, also mentioned Cosmos when asked about potential alternative blockchains for DeFi protocols.
“Massive move here, however, it might be topped out soon. In that regard, the area around $3.05-3.10 would be interesting for a ‘buy the dip’ structure. Holding around there could fuel a rally towards $5.”
So far, ATOM has rallied to $4.446, holding the $3.93 resistance level, which dates back to the first week of March.