Cosmos ecosystem – Unlock the Blockchain Multiverse universe
Learn about the Cosmos ecosystem (ATOM) with each piece inside, from which to project the future and find investment opportunities with Cosmos.
Layer-1 Blockchains are getting a lot of attention recently such as Solana, Near, Avalanche, Fantom, etc.
So is the platform connecting Blockchains according to the “Internet of Blockchain” model worth paying attention to?
This article will provide complete knowledge about Cosmos and the Cosmos ecosystem – the first Internet of Blockchain platform on the market.
Cosmos Blockchain Overview
The Cosmos is a Layer-0 Blockchain, evolving to become the Internet of Blockchain. Cosmos was born to solve 3 problems of current Blockchain:
- Scalability: Ethereum is currently too slow. Cosmos offers a workaround by creating Zones (other small blockchains) based on the Cosmos SDK.
- Effectiveness: In Ethereum, the EVM fork is exactly the same as the EVM. In Cosmos, with Cosmos SDK, the project can be built in many optional directions ⇒ Suitable for App Chain development.
- Interoperability: Blockchains cannot interact smoothly with each other because too many individual bridges have to be created. Cosmos Creates 1 IBC Bridge ⇒ Connects All.
Cosmos ecosystem overview.
What is Cosmos Hub?
Besides developing a platform, Cosmos SDK, helps projects develop their own Blockchain. Cosmos also created its own Blockchain, which is Cosmos Hub.
The role of Cosmos Hub is very important, it is the center of Cosmos that helps connect Blockchains in the ecosystem together through the IBC bridge.
During the 4 years of IBC development, there was almost nothing on Cosmos Hub, except ATOM tokens, but when the IBC bridge is completed in March of this year, ATOM and Cosmos Hub will generally enter a new phase.
Cosmos Hub will be the hub connecting Blockchains together, so the money flow on Cosmos is pouring in here a lot.
The token of the Cosmos ecosystem is the ATOM token, which works on the Cosmos Hub Blockchain.
- Marketcap: $2.2B.
- FDV: $5.4B.
- Rank: 51.
- ATH price: $22.36 (March 21, 2021).
- ATL Price: $0.12 (August 13, 2020).
- Circulating Supply: 417,417,647 ATOM.
- ATOM list exchange: Binance, Okex, Huobi, Kucoin,…
Number of Dapps on Cosmos
Cosmos is the first Internet of Blockchain development ecosystem on the market, so the number of Dapps in Cosmos is huge.
There are currently 249 Dapps growing inside the Cosmos ecosystem. Some prominent Dapps can be mentioned as Terra (LUNA), Thorchain, Kava, Injectives,…
Investors of Cosmos
Including: SNX Holdings, Dragonfly Capital Partners, KR1, Cyber Fund, Interchain, Tendermint, Tendermint Ventures, Chorus One, Figment, P2P validator, Citadel,…
As one of the first generation Blockchain, it can be seen that Cosmos investors are longtime investors in the market.
In addition, the entire Cosmos ecosystem belongs to the PoS Blockchain (Proof-of-Stake), so many Funds in addition to investing also become Validators in the Cosmos ecosystem. These are all long-term investors with a deep connection to the project.
Highlights of Cosmos Ecosystem
The biggest highlight of Cosmos compared to other Layer-1 Blockchains is in technology.
You can find the Internet of Blockchain model in many other blockchains such as Polkadot, Avalanche, Polygon. However, besides launching earlier, Cosmos also takes a different approach to this than its competitors.
In Polkadot, Avalanche, Polygon, they will focus on connecting between Chains first ⇒ Building Main Chain ⇒ Expanding to other Chains. In Cosmos, small blockchains were developed 4 years ago ⇒ Cosmos then built a Bridge to connect later.
And when Cosmos completed the IBC Bridge last March, Cosmos has completed 100% of its roadmap in 4 years, and the Internet of Blockchain era on Cosmos has begun.
⇒ Cosmos is faster in the race of the “Internet of Blockchain”.
Future Roadmap: Cosmos Hub 2.0
Cosmos recently updated on the upcoming stages of Cosmos Hub. After completing the Internet of Blockchain model, the next phase of Cosmos will be towards:
- Cross-chain Protocol on Cosmos.
- Staking Derivatives for ATOM tokens.
- Interchain Staking to increase security for the entire Cosmos ecosystem.
Cosmos Development Roadmap
Fragments of the Cosmos ecosystem
If with Polkadot, the whole system is just waiting for the Parachain auction, then with Cosmos Hub, the breaking point is IBC.
After IBC launched, the ecosystem on Cosmos Hub has rapidly developed. Currently on Cosmos Hub there are 2 outstanding projects:
- Osmosis: The first AMM on Cosmos, taking advantage of the leading edge, attracting capital through the Liquidity Mining program. Osmosis’s TVL is growing very fast lately, currently at $280 M.
- Emeris: UI/UX development platform for Gravity DEX. Gravity DEX is a project developed by Cosmos itself since September 2020, with great support from many of Cosmos’ major partners.
The puzzle pieces connected to the IBC bridge
IBC Bridge (IBC Bridge) is an Interchain bridge, connecting blockchains in the Cosmos ecosystem together.
This is the best Bridge on the Cosmos ecosystem, helping to circulate the value stream throughout the system.
The number of projects connected to IBC tells us the cross-chain power on Cosmos.
Currently, there are more than 15 projects associated with IBC, in which there are 8 outstanding projects including:
Iris Network: A cross-chain service hub for next-generation DApps, built on Cosmos-SDK, IRIS Hub enables cross-chain interoperability and provides Modules to support DeFi.
Iris is the first project connected to IBC, and one of the few projects directly invested by Tendermint Ventures – Cosmos’ Investment Fund. However, the ecosystem on Iris is quite small, with only 2 projects: Coinswap (an AMM) and Upstick (an NFT Marketplace).
Akash Network: A secure, transparent and decentralized cloud computing marketplace that connects those who need computing resources (clients) with those with computing power to rent (providers).
And some featured products
Persistence: An ecosystem of financial products, for both retail investors and large financial institutions.
Persistence hopes to be able to bridge the gap between decentralized finance and the traditional economy, and help develop DeFi applications in the field of NFTs.
Cronos: A decentralized and open-source public blockchain of Crypto.com – a decentralized exchange similar to Binance, it is built on top of the Cosmos SDK.
Regen Network: A solution to apply blockchain technology to areas that help improve the earth’s environment such as agriculture, climate, water, commodity trading,…
Sentinel: A network layer that provides P2P, decentralized applications, and marketplaces. Sentinel allows anyone to create Public and Private networks. It allows their customers to become suppliers and consumers in the network.
Bandchain: Blockchain protocol project in the field of data management (Oracle).
It is a Web 3.0 layer that addresses data, reliability, and quality issues of data information for Web 3.0 applications. Bandchain is currently the 2nd largest project in the Oracle array, after Chainlink.
Osmosis: The first AMM on Cosmos Hub, with recent rapid Volume and TVL growth.
The more projects connected to IBC, the stronger the Cosmos ecosystem will be, you should pay attention to these projects.
The puzzle pieces grow strongly on their own
Besides the Cross-chain value stream on Cosmos, you should also pay attention to individual Blockchains, these Blockchains with strong potential have built their own ecosystem.
Here I mention 4 Blockchain: Thorchain, Terra, Injective, Kava.
1. Terra (LUNA)
This is the blockchain on Cosmos that had a Smart Contract exactly 1 year ago. In Terra, projects all use UST, there aren’t any other traditional Stablecoins here (USDC, USDT,…).
Currently Terra is the Blockchain with the largest ecosystem of Blockchains on Cosmos, with 70+ projects. Regarding Stablecoins, UST is currently in the top 5 Stablecoins with the highest capitalization in Crypto and is currently being developed in many other Blockchains besides Terra.
Learn: Terra Ecosystem Overview
Terra Ecosystem Overview
2. THORChain (RUNE)
THORChain was originally built as a Cross-chain DEX, and upon completion of Thorswap, Thorchain has continued to grow into an ecosystem.
Below is the current Thorchain ecosystem. Since the initial features are quite suitable for building a DEX, most of the projects on THORChain are AMM:
- AMM: THORSwap, SKIP Exchange, BEPSwap, ASGARDEX, Defi Spot
- IDO Platform: THORSTARTER
- Wallet: THORWallet
- Yield Farming: Skyrim Finance (IDO trên THORSTARTER).
- Synthetic: Brokkr Finance
3. Kava (KAVA)
The Kava ecosystem currently has a number of dapps for the Kava team to do:
- Kava Mint: USDX stablecoin mint platform, similar to Maker DAO.
- Hard Protocol: Currency market similar to Compound.
- Kava Swap: AMM.
- Wallet: Trust, Ledger.
As can be seen, the puzzle pieces in the Kava ecosystem are quite few. Kavaswap was launched only a few days ago.
However, the successful development of AMM is also a big step in the development of Kava.
Learn: Overview of the Kava Ecosystem
4. Injective (INJ)
A cross-chain cross-chain protocol built for financial applications with Blockchain is called Injective Chain.
There will be many applications on it, one of which is Injective’s exchange that acts as a place to trade spot and derivative products, similar to the previous version.
In the past time, Injective has been actively connecting with many other Blockchains such as BSC, Near, Polkadot.
The Future of Cosmos
The Crypto market in general and the Cosmos ecosystem in particular are having basically very good development directions, even in the Bull or Bear period, projects still make great efforts to develop.
Currently, Cosmos is completing the Infrastructure section, which is the foundation for future development of Cosmos.
Here are some notable milestones on the Cosmos ecosystem that you should pay attention to in the near future:
- Gravity Bridge Mainnet: The Cosmos Bridge – Ethereum will scale transactions beyond the Cosmos ecosystem.
- Cross-chain Protocol on Cosmos: Currently on Cosmos, there are 2 Cross-chain AMMs, Osmosis and Gravity DEX, this is the premise to develop more Cross-chain Protocols such as Lending, Stablecoin, Synthetic,…
- Interchain Staking: If this feature launches successfully, it will greatly reduce the cost of Validators, and increase the security of the entire Cosmos ecosystem.
- More projects connected to IBC: The more projects connected to IBC, the stronger the Cross-chain ecosystem on Cosmos will be, and the more value of ATOM will be. This is also a factor you should pay attention to.
Investment opportunities on Cosmos
Some investment opportunities on Cosmos
- Staking: All blockchains on Cosmos follow the PoS model, so all tokens of blockchains can be staking.
- Invest in ATOM token: As can be seen, most of the attention on Cosmos is focusing on Cosmos Hub with native token ATOM, ATOM is definitely the token that benefits from Cross-chain development on Cosmos Hub .
- Invest in AMM on Cosmos Hub: Including Osmosis and Emeris, AMM is the foundation for the development of any ecosystem, so when Cosmos grows, AMM is the first layer to benefit. You can choose to provide liquidity or invest in AMM tokens.
- Cross-chain Protocol: After IBC is completed, new Cross-chain projects on Cosmos Hub are also worth investing in, you should pay attention.
- Small Blockchains in Cosmos Ecosystem: Such as Persistence (XPRT), Secret Network (SCRT), Thorchain (RUNE).
In fact, there are quite a few investment funds and KOLs that appreciate Cosmos’ model such as Multicoin Capital, Framework Capital, Messari Research,… but that’s about the technique.
In terms of investment, the entire value on Cosmos is almost not given to the ATOM token, so ATOM, although better, still seems to be outperformed by competitors such as DOT, AVAX, MATIC.
The Cosmos team also realizes this, and there are more and more applications for ATOM tokens such as transaction fees, liquidity pools, Interchain Staking, etc.
I personally believe that the price will return to the right price value of the project.
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