This series will focus on emerging trends within the crypto market. We will focus on getting in early for new trends and also identifying strong trends to hold long term. (please note this is one of our earlier articles, LUNA has crashed and it is recommended to stay away from it, Cosmos however remains strong**)
Here is an earlier article on Cosmos we wrote last year [ATOM]. We have been staking ATOM for months as a long-term investment. ATOM is in our advanced portfolio for 2022, we have mentioned it in many articles about strong, Bitcoin dip resistant opportunities as well. This series aims to focus on two different areas. One, identify a trend as it emerges so we can catch the wave early and make potentially massive gains. Or two, identify an existing strong trend we foresee continuing after a correction, the gains will be less, but likely more reliable. I would place ATOM in both trend types since it presents us with a unique opportunity.
ATOM rests corrected at an 8-billion-dollar market cap. The upside is massive when you compare it to other interoperability plays such as Polkadot. The only thing holding ATOM back is some tokenomics adjustments and those are already in the works. Upon the ATOM interoperability network rests many successful blockchains, BNB, LUNA and Crypto.com’s CRO token to name a few. ATOM is only 37% from the all-time-high, many altcoins are decimated showing 70-80% corrections with the latest Bitcoin weakness. ATOM has resisted much of this theme staying strong with support between the 25-30$ range.
Cosmos has had growing developer activity on the monthly timeframe. I am finding that many of my favored projects were built within the ecosystem. The benefit of this is that each blockchain will be inherently interoperable with all other chains built within Cosmos. Since this interoperability is built from the ground up, like Polkadot, bridges will be less of a safety concern. The concern with bridges is the lapse of security when transitioning between chains, there have been several exploits in the past. A recent hack on Solana saw 320million in funds jeopardized, this is a good read [here].
Below is a chart of ATOM vs. Bitcoin performance on the long-term timeframe. At first glance you will notice ATOM slowly crept up on Bitcoin gains and eventually overtook Bitcoin ROI sustaining higher highs and higher lows. ATOM is currently in a consolidation pattern and at a respectable entry price. ATOM rewards holders who stake the token with the possibility of airdrops of its various ecosystem tokens. ATOM provides 7-10% APY for those who wish to stake, the only downside is a 21-day unlock period. For those who do not wish to lock tokens, ATOM can be staked on the Kraken exchange with instant unlocks for a slightly lower APY.
I always preach, do not marry yourself to any one token or network, this sets investors up for failure if anything goes wrong. Never invest too much into one altcoin. LUNA falls under the strong remains strong category. LUNA is one of my largest holdings, I have been buying more heavily at the recent sub-50$ dip we saw a few weeks ago. When I first heard of LUNA I had concerns about centralization, those concerns have passed as the founders have stated they will go completely decentralized if the SEC pursues regulation on the network. LUNA and the Anchor protocol are a massive selling point for those looking to get into crypto for the first time. When I speak with the savvy investor who wants to jump into the space, they are immediately intrigued by the 20% APR that the anchor protocol provides, and the low-risk nature of the stable coin UST.
After all, who wouldn’t mind outperforming the average stock market gains by holding a dollar-pegged token? The more UST minted, the higher the price of LUNA goes, it’s a beautiful architecture. LUNA holders can vote on future developments based on how much LUNA they currently hold. The Terra Station wallet is simple and easy to use, users can swap between LUNA and UST as often as they like. UST is the main token I take profit into these days since I believe it will be the most protected from regulation. Since the dollar-peg is achieved by the intricate relationship mathematically between LUNA, the Mirror Protocol, and UST, I foresee LUNA pumping if Tether or USDC ever come under fire.
LUNA also has a way of always pumping when Bitcoin shows weakness on the short-term. Investors are searching for a safe haven, why buy gold when you can lock your funds at a 20% interest rate in a personal wallet free from bank freezes and surveillance. Anchor is just ONE part of the ever growing LUNA ecosystem, more to come on this soon. I believe ATOM and LUNA are strong existing trends that will continue to show strength over 2022. While LUNA will likely provide less gains since the market cap is growing, LUNA has been reliable in the past. In regard to ATOM, the sky is the limit, 5x, 10x, who knows, I would expect at least a 3x soon. As always stay safe out there, we hope to continue this series and help educate our readers so they can also get in early like we did last year. Please remember this is not financial advice, stay safe out there! Check out the next part of the series Part II.