Why Is Cosmos (ATOM) So Cheap?

Last Updated January 25th 2022

7 Min Read

Why is Cosmos so cheap? Can we expect ATOM token prices to continue rising in the future, and more importantly, how high can they reach in the next 5 years?

Different crypto experts and investors have come up with numerous factors that they believe keep Cosmos trading at these low-price levels. The two that stand out are the fact that it is relatively new and that crypto prices are at the moment driven by hype and speculative interests at the expense of usability. The ongoing meme currency frenzy that has the majority of investors focused on making a kill from the next meme coin hasn’t helped either as it sucks attention from such deserving and long-term-focused altcoins as ATOM.

The relatively low ATOM token prices shouldn’t, however, be interpreted to mean low valuation for the altcoin. Note that after two years of active trading, Cosmos has shot from oblivion to rank among the 20 most valuable cryptocurrencies with a market capitalization exceeding $10.3 Billion, according to CoinMarketCap.

Additionally, it only started attracting serious investor interest in 2021, and now everyone is confident that it could escape these cheap price levels and rise to unimaginable heights in the next few years.

In this post, we will be discussing why Cosmos continues trading at these low prices if it is possible for it to escape these low prices, and how high it can get in the next few years.

We start by building the context on why ATOM may be selling for cheap by looking at its price history.

Cosmos (ATOM) Price History 2019 To 2022

Though the buildup to what is now referred to as the Cosmos blockchain started around 2014, it was not until February 2021 that it started in the open markets. According to Coingecko, ATOM had an introductory price of $2.75 and has since struggled with the low-price tag. Between 2019 and 2020, for instance, it struggled to lift off and break above $8, oftentimes trading below its introductory price and dipping as low as $1.

Most crypto experts associate this depressing price action with the fact that it was new. It has since scored numerous partnerships with the likes of Binance Smart Chain and Okex, who are interested in its interoperability feature. This helped bump up its value from around $6 at the beginning of the year to the current high of $44, set in September 2021.

Cosmos was by more than 700% in the last 12 months, but anyone who understands the potential its blockchain and its IBC protocol have on the crypto-verse will be quick to tell you that its value is massively undervalued. In questioning why it is still trading at these low prices and how high up it can get in future, one Redditor even asks if ATOM is the proverbial “Diamond in the rough.”

This brings us to our main topic, why is Cosmos massively undervalued?

Read Also: Is Cosmos Worth Investing?

Why Is Cosmos (ATOM) So Cheap?

The first answer that comes to most crypto investors’ minds when asked why Cosmo is selling for cheap is - because it and the industry in which it operates in are still new. Look at it this way, while the altcoin launched in 2019, it was in ‘incubation’ for close to 2 years and only started gaining traction in early 2021.

Furthermore, Cosmos blockchain is marketed around achieving interoperability for the crypto world. But this can only be achieved when most of the blockchains eventually report significant use cases, which would naturally call for data sharing and communication between them. But we all understand that blockchain technology is still in its nascent stages and is facing a lot of pushback from the corporate and political world.

The fact that Cosmos is new and the crypto industry is still in its nascent stages explains the low demand for the Cosmos blockchain as well as ATOM tokens and thus the low price.

Cosmos is also cheap because the crypto market is irrational. This says that while altcoins in a rational market would be rewarded based on their use cases, here, they are rewarded based on hype. That is why we have so many meme coins like Dogecoin and Shiba Inu blowing and rising to become one of the top 10 most valuable coins even though they have no actual use cases while useful coins struggle to attract investors.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Should I Buy Cosmos (ATOM) While It Is Still Cheap?

The decision to invest in Cosmos should be informed by such factors as your risk tolerance, crypto trading experience, and your investing goals. But having considered the fact that it is only coming off incubation, it has a huge potential to grow, and every forecasting metric indicates that its value will continue rising, you should consider adding ATOM to your crypto investment portfolio.

Crypto experts at Economy Watch are especially confident that if the altcoin sustains its current uptrend and if the crypto market sustains its current rally, it can escape the low-price levels and grow by as much as 700% to reach $200 before 2025.

The technical analysis website CoinPriceForecast’s also indicates that Cosmos token prices will continue rising for the next 10 years. By 2032, it indicates that Cosmos will have appreciated by more than 400% and risen above $180.66.

Yet another technical analysis website, CryptocurencyPricePrediction, is even more cheery of ATOM’s price action for the next 8 years. By December 2030, their analysis indicates that your investment in Cosmos will have appreciated by as much as 4,231.12%.

These are just samples of a long list of crypto experts and technical analyst predictions, and they are all bullish on the cosmos blockchain and token price future. The common thread is that they all expect ATOM token prices to perpetually rise, which is one of the reasons why you should consider investing in the altcoin today at its current low prices.

Is Cosmos (ATOM) Worth Buying?

Yes, Cosmos tokens are worth buying because their value is expected to continue rising in the foreseeable future - making it a solid long-term investment. Cosmos is also worth buying because it has proved to be a rather resilient investment.

It had a rough start that saw its token prices perform dismally and even fall below their introductory price, and just as it started gaining momentum, the market crashed, and its value dipped again. But despite these and the low demand challenge, it has always come back stronger and informs the investment community’s belief in a Cosmos future.

Put simply, Cosmos has all the hallmarks of a good long-term investment, which make it a valuable addition to any crypto portfolio.

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What Will Cosmos (ATOM) Be Worth In 5 Years?

Well, the general feeling in the crypto community is that Cosmos will sustain its current uptrend, and the ATOM token prices will continue rising. Crypto experts, analysts, and investors are confident that it will be selling for much higher in the next 5 years than its current prices and place its worth between $182 and $415 by the end of 2026.

Gov. Capital and their technical and deep learning analysis of ATOM’s future join the growing list of optimists when their report indicates the altcoin could be selling for as much as $415.78 by the end of 2026.

The reputable Wallet Investor is equally bullish on Cosmos future price action and indicates that ATOM could be trading for well over $182.48 in the next 5 years.

Other technical analysis platforms that share this optimism about Cosmos price action for the next 5 years are the ICOCreed and the PricePrediction.Net, who are confident the altcoin prices could reach as high as $230 and $263, respectively.

Check Out: Will Cosmos Make Me Rich In 10 Years?

Conclusion: Why Is Cosmos (ATOM) So Cheap?

ATOM’s currently low-price action can be attributed to a host of reasons, but crypto experts have singled out the fact that both Cosmos blockchain and the industry in which it seeks to operate are still in their nascent stages. Cosmos is yet to partner with enough brands, and the crypto industry is yet to go mainstream, thus the low demand for the ATOM tokens or Cosmos IBC protocol, which ultimately leave it undervalued. Moving forward, however, the majority of crypto market players are confident that Cosmos token prices will continue rising and that they could reach as high as $415 in the next 5 years.