The cryptocurrency market is annoying for its investors these days. Leading crypto Bitcoin (BTC) is oscillating below the psychological level of $20,000. The leading altcoin Ethereum (ETH), on the other hand, seems to have lost the wind created by its upcoming upgrade Merge. In this environment, a popular crypto analyst predicts that Cosmos (ATOM) could ignite a 100% rally with Ethereum’s leverage.
“Altcoin price currently depends on two main factors”
The host of the popular cryptocurrency YouTube channel Coin Bureau, nicknamed Guy, is naming an altcoin to his 2.1 million subscribers in a new video post. The analyst is quite assertive about this altcoin. As you follow on Kriptokoin.com, the highly anticipated upgrade of the leading altcoin Ethereum, Merge, will be the most important event of this month and the market.
Guy claims that Ethereum Merge will likely help boost the price of Cosmos (ATOM). The analyst notes that ATOM demand fell dramatically during the bear market. He also says that the altcoin price currently depends on two main factors. The host of Coin Bureau explains:
Even scarier, ATOM’s economic equation doesn’t have much on the demand side. It is gratifying that the organizations behind the project have apparently stopped selling. However, it also means that the development of demand factors is slowing down.
“The strongest demand driver of the altcoin project…”
According to the analyst, ATOM’s strongest demand driver these days is Jae Kwon’s GNO Land. Also, all ongoing airdrops for promising Cosmos projects, including this project, are a key driver, given only to those holding or holding ATOM in participating wallets like the Keplr wallet. Guy then talks about a secondary demand driver for ATOM. In this regard, he records:
It is a bridge currency for all promising Cosmos ecosystems on more general use-case blockchains like Evmos and Kava, which support Ethereum smart contracts and lock in the total value of hundreds of millions of dollars.
“It is possible that we will see ATOM do 2X in the short and medium term”
Coin Bureau’s host also explains what would happen if ATOM’s current trend continues. According to the analyst, ATOM has the potential to evolve if there are no issues with Ethereum’s transition to the long-awaited Proof-of-Stake (PoS) consensus mechanism. In this context, Guy makes the following assessment:
Now, while it may seem like ATOM’s limited demand drivers, they’ve been enough to push its price up in the last few months. If this trend continues, we may see ATOM do 2X in the short to medium term. It really depends on whether Ethereum’s Merge upgrade that will happen this month will result in the wider crypto market rally.
At press time, ATOM was trading at $12.78, according to CoinMarketCap data. The altcoin has followed a sideways trend in the last 24 hours. However, the altcoin stands 71.54% off from the $44.70 ATH level it saw about a year ago.
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