What is expected in the development of ATOM?
Cosmos (ATOM) is making important progress with these key updates:
- Cross-Chain EVM Integration (Q3 2025) – Making Cosmos compatible with Ethereum-based chains to allow smooth interaction and asset transfers.
- Governance Overhaul (Q4 2025) – Speeding up on-chain voting and introducing delegated voting to improve decision-making.
- Interchain Security v2 (2026) – Improving shared security for smaller blockchains by letting them use Cosmos Hub’s validators more efficiently.
Deep Dive
1. Cross-Chain EVM Integration (Q3 2025)
What’s happening:
Cosmos is upgrading its communication protocol (IBC) to work better with Ethereum Virtual Machine (EVM) chains like Cronos and Ripple’s upcoming sidechain. This means these chains can connect directly with the Cosmos Hub, allowing assets and smart contracts to move between them easily. Recent testnet updates (Bluzelle v11.0) show steady progress toward this goal.
Why it matters:
This is good news for ATOM holders because it could attract more developers who want to build across multiple blockchains while keeping Cosmos’ unique security features. Still, there’s competition from other solutions like Ethereum Layer 2 rollups that could affect adoption.
2. Governance Overhaul (Q4 2025)
What’s happening:
Proposal #876 plans to cut voting times in half—from 14 days down to 7—and add delegated voting, where token holders can assign their voting power to others. This comes after a paused plan to launch an EVM Hub in July 2025, which showed the community wants faster and more efficient governance (MEXC News).
Why it matters:
This change could speed up upgrades and innovation, which is positive. However, there’s a risk that fewer validators might participate, potentially centralizing control.
3. Interchain Security v2 (2026)
What’s happening:
Building on a 2024 update, this new version will let smaller blockchains “rent” security from Cosmos Hub’s validators more cheaply and effectively. The Persistence Chain’s recent upgrade (SDK v0.53 migration) is an example of how this shared security model works in practice.
Why it matters:
This is a strong long-term positive for ATOM because it could become a valuable asset used as collateral across different blockchain ecosystems. The challenge will be managing the technical complexity and coordinating validators.
Conclusion
Cosmos is focusing on making blockchains work better together (through EVM and IBC), improving shared security, and streamlining governance. This positions Cosmos as a key platform connecting modular blockchains. With ATOM trading around $4.69 (down 1.4% over the past month), it will be interesting to see how new staking options might increase its usefulness as these upgrades roll out.
What updates are there in the ATOM code base?
Cosmos’ technology is improving with faster performance, important security fixes, and updates that help its ecosystem grow.
- Performance Boost (June 11, 2025) – Cronos Chain added new tech to handle 60,000 transactions per second (TPS).
- Security Fix (July 8, 2025) – A critical bug was fixed to prevent network stoppages.
- Software Upgrade (September 9, 2025) – Persistence Chain started upgrading to the latest Cosmos software tools.
Deep Dive
1. Performance Boost (June 11, 2025)
What happened: Cronos Chain implemented BlockSTM and MemIAVL technologies, increasing its transaction speed to 60,000 TPS and cutting the time for nodes to sync from 16 hours down to just 5 minutes. These improvements are available for all Cosmos-based blockchains.
Why it matters: Faster and more scalable networks attract developers and users, making Cosmos a stronger platform for connecting different blockchains. This is good news for Cosmos (ATOM). (Source)
2. Security Fix (July 8, 2025)
What happened: Cosmos SDK version 0.53.3 fixed a serious bug in the x/distribution module that could have caused blockchains to stop working because of reward payout issues. Chains using this module needed to update quickly.
Why it matters: This fix helps keep the network stable but also shows the importance of regular maintenance. Validators (network operators) must update their software carefully to avoid problems. This is a neutral update for Cosmos (ATOM). (Source)
3. Software Upgrade (September 9, 2025)
What happened: Persistence Chain began a four-step process to upgrade to Cosmos SDK v0.53.x. It will replace its custom Liquid Staking Module (LSM) with standard tools from Cosmos.
Why it matters: Using the standard Cosmos software improves compatibility and reduces technical issues, helping the ecosystem work better together. This is positive for Cosmos (ATOM). (Source)
Conclusion
Cosmos is focusing on making its network faster, more secure, and better connected by updating its software and fixing bugs. These changes show the platform is growing stronger but require careful coordination among network operators. The big question is whether the faster speeds will lead to more cross-chain apps by the end of 2025.
What could affect the price of ATOM?
Cosmos (ATOM) is at a critical crossroads with both risks and opportunities ahead.
- Tokenomics changes – High inflation (10%) is putting downward pressure on the price; ongoing governance discussions could lower staking rewards (APR) to 2–4% (forum post).
- Regulatory concerns – A lawsuit from the SEC claims ATOM is a security, which could lead to U.S. exchanges removing it (forum post).
- Growing ecosystem – Upgrades like Persistence’s SDK v0.53 and dYdX’s $200 million daily trading volume on Cosmos-based appchains are driving demand (news).
Deep Dive
1. Inflation & Governance (Mixed to Negative Impact)
What’s happening: ATOM currently offers about a 10% annual staking reward, which some see as too high because it encourages holders to sell and take profits. Investors can find safer returns around 5% in traditional markets, making ATOM less attractive. In 2022, a proposal to reduce inflation to 2–4% (similar to Ethereum) didn’t pass, but the conversation continues. A 2024 proposal argues that lowering inflation is essential to prevent ATOM from becoming a “yield trap” — where rewards look good but don’t support price growth.
Why it matters: Reducing inflation could help stabilize ATOM’s price by encouraging long-term holding. However, changes depend on community approval and could face resistance from validators (those who secure the network), which might delay improvements and keep pressure on the price.
2. Regulatory Risks (Negative Impact)
What’s happening: The U.S. Securities and Exchange Commission (SEC) filed a lawsuit in 2024 against Coinbase, claiming ATOM is an unregistered security. This legal uncertainty could lead U.S.-based exchanges to delist ATOM, similar to what happened with privacy coins like Monero (XMR).
Why it matters: If ATOM is removed from major U.S. exchanges, it could lose liquidity and access to institutional investors, potentially causing its price to drop 20–30%. However, demand from outside the U.S., especially in Asia where decentralized exchanges (DEXs) are growing, might help offset some of these losses.
3. Ecosystem Growth & Adoption (Positive Impact)
What’s happening: Recent upgrades like Persistence’s SDK v0.53, completed in September 2025, improve how Cosmos connects with other blockchains. dYdX, a decentralized derivatives exchange, now processes $200 million in daily trading volume on its Cosmos-based appchain. Additionally, Circle’s Arc blockchain uses Cosmos technology, adding credibility to the ecosystem.
Why it matters: These developments increase activity and fees within the Cosmos network, boosting ATOM’s usefulness. If the weekly volume of cross-chain transactions (IBC volume) stays above $500 million, it would show strong fundamental growth.
Conclusion
Cosmos (ATOM) is navigating a delicate balance between reforming its inflation model and facing regulatory challenges, while also leveraging its technology leadership in connecting blockchains. The upcoming October 2025 governance vote on reducing inflation is key — if approved, ATOM could rally toward $5.50; if rejected, it might fall back to around $4.20. The big question remains: can Cosmos’ strength in appchains outweigh the risks from regulatory uncertainty?
What are people saying about ATOM?
The Cosmos (ATOM) community is cautiously optimistic but remains technically cautious. Here’s what’s happening right now:
- Traders are watching for a breakout above $4.85 as ATOM holds steady around $4.60 support
- The ecosystem’s shift toward interoperability is encouraging institutional investors to take bullish positions
- Long-term holders are debating the coin’s value after a significant drop of about 90% from its all-time high
Deep Dive
1. @ali_charts: Triangle pattern signals a possible 30% price move
"Cosmos $ATOM triangle consolidation nearly at the apex. Watch for a 30% move!"
– @ali_charts (1.2M followers · 42K impressions · 2025-08-30 03:08 UTC)
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What this means: A triangle consolidation is a chart pattern that often leads to a big price move. If ATOM breaks above $4.85, it could signal a strong upward trend. If it doesn’t, the price might drop back to around $4.30.
2. TokenPost: Shift away from Ethereum compatibility sparks 4% price rally
"Cosmos shifted focus from Ethereum compatibility to IBC expansion, triggering institutional buying"
– TokenPost (2025-07-16 22:13 UTC)
View article
What this means: Cosmos is focusing more on its own cross-chain communication technology (IBC) rather than just being compatible with Ethereum. This change has attracted interest from big investors, but long-term success depends on how many developers build on the platform.
3. @AirdropGlideapp: Community stays loyal despite price drop
"I love Cosmos...if we can’t joke about ATOM being -90% from ATH, what can we do? It’s not FUD. It’s love."
– @AirdropGlideapp (28.6K followers · 8.1K impressions · 2025-08-28 16:17 UTC)
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What this means: Even though ATOM’s price has dropped significantly, many long-term holders remain committed because they believe in the technology and community, not just the price.
Conclusion
The outlook for Cosmos is mixed. Traders see potential for short-term gains due to expected price swings, while others question if the focus on interoperability is enough to hold through broader market challenges. Keep an eye on the $4.60 support level and how widely the Cosmos SDK is adopted in the coming months. According to the Altcoin Season Index (currently 65/100), ATOM might benefit if investors become more willing to take risks on alternative cryptocurrencies.
What is the latest news about ATOM?
Cosmos is navigating important technical updates and market ups and downs, working to grow its ecosystem while managing price swings. Here’s the latest:
- Persistence Chain Upgrade (September 9, 2025) – A multi-step update to the Cosmos software aims to boost security and make different blockchains work better together.
- ATOM Price Drops Sharply (August 14, 2025) – A big selloff pushed ATOM’s price down to $4.60, showing some big investors are adjusting their positions.
- DEXs See Big Growth in On-Chain Perpetual Contracts (August 25, 2025) – Cosmos-based decentralized exchanges like dYdX are driving more use of DeFi derivatives.
Deep Dive
1. Persistence Chain Upgrade (September 9, 2025)
Overview:
The Persistence Core-1 Chain, part of the Cosmos network, started a multi-phase upgrade to the latest Cosmos software (Cosmos SDK v0.53.x). This update replaces its old Liquid Staking Module with the standard version used by Cosmos Hub. The upgrade happens in four steps: testing compatibility, phasing out the old module, cleaning up the code, and adding Babylon SDK to improve Bitcoin-backed security.
What this means:
This upgrade is good news for ATOM holders because it brings Persistence in line with Cosmos’ best practices, making the system easier to maintain and improving security between blockchains. Doing the upgrade in phases helps reduce risks and supports Cosmos’ goal of seamless blockchain interoperability. (Persistence Blog)
2. ATOM Price Drops Sharply (August 14, 2025)
Overview:
ATOM’s price fell 9% during the day to $4.49, with trading volume jumping 322% above normal, before settling back at $4.60. This drop happened alongside weakness in other altcoins but saw quick buying from big investors at the $4.60 support level.
What this means:
The quick recovery shows ATOM’s price has strong support around $4.60. However, the price has struggled to break above $4.91, indicating some ongoing selling pressure. Traders are watching for steady high volume to confirm if ATOM can break out to the upside. (CoinDesk)
3. DEXs See Big Growth in On-Chain Perpetual Contracts (August 25, 2025)
Overview:
Decentralized exchanges (DEXs) running on Cosmos appchains, including dYdX (which recently moved to Cosmos), saw monthly trading volumes for perpetual futures reach $50 billion in early 2025. dYdX’s move to Cosmos allowed faster transaction settlements and created a $12 million MegaVault for liquidity.
What this means:
This trend is somewhat positive for ATOM. While the growth of DEXs highlights Cosmos’ technical strengths, ATOM itself doesn’t directly earn fees from these appchains. The real benefit depends on how much the overall Cosmos ecosystem grows, which could increase demand for ATOM tokens used in staking and governance. (Bitrue)
Conclusion
Cosmos continues to be a leader in blockchain interoperability (with the Persistence upgrade) and decentralized finance infrastructure (like dYdX). However, ATOM’s price reflects broader market uncertainty. Key questions remain: Will the Persistence upgrade lead to more Bitcoin integrations? And can ATOM break above $4.91 to start a new upward trend?