What is expected in the development of ATOM?
Cosmos is growing its network by improving how different blockchains work together and adding new DeFi (decentralized finance) features.
- Persistence Chain Upgrade (Q4 2025) – Moving to a newer version of the Cosmos software in stages.
- Interchain Staking Expansion (2025–2026) – Validators will help secure more blockchains.
- EVM + IBC Integration (Ongoing) – Connecting Cosmos with Ethereum and Solana for easier cross-chain transactions.
- Institutional Adoption Tools (2026) – Building blockchain solutions that meet business and regulatory needs.
Deep Dive
1. Persistence Chain Upgrade (Q4 2025)
Overview: The Persistence Core-1 Chain is upgrading to Cosmos SDK v0.53.x in four steps (Persistence One). The final phase adds a feature called the Babylon module, which uses Bitcoin to secure timestamps, making cross-chain security stronger.
What this means: This upgrade is good news for ATOM’s usefulness as more projects adopt the Cosmos SDK. However, if testing finds problems, delays could slow down progress in the ecosystem.
2. Interchain Staking Expansion (2025–2026)
Overview: Validators on the Cosmos Hub will start securing newer blockchains like Ondo and Ripple’s EVM sidechain. They’ll share penalties (called slashing) if something goes wrong, which helps keep the network safe. This builds on Cosmos’ existing Inter-Blockchain Communication (IBC) system.
What this means: This is positive for ATOM because validators can earn fees from multiple chains, increasing demand. But if too few validators focus on certain chains, it could create risks.
3. EVM + IBC Integration (Ongoing)
Overview: Since April 2025, the Eureka upgrade allows Cosmos to connect directly with Ethereum and Solana blockchains through IBC. Projects like Cronos and Ripple’s EVM sidechain use this to swap assets across chains easily.
What this means: This improves Cosmos’ role in the growing multi-chain DeFi space. It’s a positive development but faces competition from other cross-chain technologies like LayerZero and Chainlink CCIP.
4. Institutional Adoption Tools (2026)
Overview: Cosmos is developing customizable blockchains that meet compliance and regulatory standards, targeting businesses like JPMorgan experimenting with blockchain tech. This fits with Interchain Labs’ focus on serving regulated industries.
What this means: If institutions adopt Cosmos SDK, it’s a big win for ATOM in the long run. But if Ethereum’s Layer 2 solutions dominate enterprise use, it could limit Cosmos’ growth in this area.
Conclusion
Cosmos is balancing technical improvements (like the Persistence SDK upgrade and EVM-IBC integration) with expanding its ecosystem through interchain staking and business-focused tools. While short-term growth depends on DeFi partnerships, ATOM’s role as a key validator could sustain demand. The big question is whether Cosmos’ cross-chain activity can compete with large, single-chain platforms like Solana.
What updates are there in the ATOM code base?
Cosmos (ATOM) made important updates and strategic changes in 2025, focusing on security, connecting different blockchains, and improving tools for developers.
- Critical Security Patch (July 8, 2025) – Fixed a bug that could stop blockchain rewards from working properly.
- IBC Protocol Expansion (July 16, 2025) – Shifted focus away from Ethereum Virtual Machine (EVM) to improving cross-chain communication.
- SDK v0.53 Release (July 25, 2025) – Improved the software development kit with better modular design and compatibility.
Deep Dive
1. Critical Security Patch (July 8, 2025)
Overview: A bug in the rewards system (x/distribution module) could cause blockchains to freeze when too many rewards piled up.
Fixing this required all Cosmos chains to update their software within 2 hours. Validators who didn’t update risked losing 1.1% of their staked tokens. This patch ensures that rewards are distributed smoothly without interruptions.
What this means: This is good news for ATOM holders because it prevents network downtime and builds trust in Cosmos’ governance system. (Source)
2. IBC Protocol Expansion (July 16, 2025)
Overview: Cosmos Hub stopped developing the Ethereum Virtual Machine (EVM) to focus on improving Inter-Blockchain Communication (IBC), which allows different blockchains to connect and work together.
The team decided this shift was necessary due to high costs and to focus on what Cosmos does best—connecting multiple blockchains. After this announcement, ATOM’s price rose by 4%, showing investor confidence in Cosmos’ role as a multichain platform.
What this means: In the short term, this change is neutral for ATOM since it steps back from competing with EVM. But long term, it’s positive because Cosmos is focusing on its unique strength in cross-chain communication. (Source)
3. SDK v0.53 Release (July 25, 2025)
Overview: The new Cosmos SDK version 0.53 brought modular upgrades that are backward compatible, including integration with Babylon, which adds Bitcoin-backed security features.
Some blockchains like Persistence are adopting this update gradually to reduce risks, focusing on better performance and compatibility with the latest Cosmos tools.
What this means: This is a positive development for ATOM because it attracts developers by offering scalable and reliable infrastructure. Cosmos has seen over 950 code updates on GitHub in six months, second only to NEAR, showing strong developer interest. (Source)
Conclusion
Cosmos is strengthening its position as a leader in modular and interoperable blockchains through timely security updates, a clear focus on cross-chain communication, and continuous improvements to its developer tools. With developer activity growing faster than most other blockchain projects, the question is: will Cosmos’ focus on IBC speed up institutional adoption of ATOM?
Why did the price of ATOM go up?
Cosmos (ATOM) increased by 1.47% over the last 24 hours, reaching $4.62. This outperformed the overall cryptocurrency market, which gained 0.65%. The main reasons behind this rise include positive technical signals, important upgrades within the Cosmos ecosystem, and growing interest in alternative cryptocurrencies (altcoins).
- Technical Rebound – ATOM held strong support at $4.60 and showed bullish momentum through technical indicators.
- Ecosystem Upgrades – Persistence Chain is gradually upgrading to Cosmos SDK version 0.53.x.
- Altcoin Rotation – The CMC Altcoin Season Index increased by 62% over the past 30 days, indicating more attention on altcoins like ATOM.
Deep Dive
1. Technical Rebound (Positive Signal)
Overview: ATOM successfully maintained its key support level at $4.60, tested on August 14, and moved above the halfway point of its recent price drop ($4.62). The MACD indicator, which helps identify momentum, turned positive, suggesting buyers are gaining strength. The Relative Strength Index (RSI) is at 51.43, indicating there’s room for the price to rise further.
What this means: Traders are likely buying ATOM near the $4.60 support level, seeing recent price dips as good entry points. However, the price still faces resistance at $4.91, which was the high on August 14.
What to watch: If ATOM closes above its 200-day Exponential Moving Average (EMA) at $4.71, it could signal a continued short-term upward trend.
2. Persistence Chain Upgrade (Positive Impact)
Overview: On September 9, Persistence Core-1 Chain started a multi-step upgrade to Cosmos SDK version 0.53.x. This upgrade improves security and adds Babylon integration, which supports Bitcoin-backed assets. You can read more about this upgrade here.
What this means: This upgrade strengthens Persistence’s role—and by extension, Cosmos’s role—as a hub for Bitcoin-related decentralized finance (BTCFi). The phased upgrade approach reduces risks, giving investors confidence in the network’s stability.
What to watch: The upgrade is expected to complete Phase 4 (which includes Babylon integration) by late September.
3. Altcoin Momentum (Mixed Effects)
Overview: The CMC Altcoin Season Index, which measures how well altcoins are performing compared to Bitcoin, rose from 45 to 73 in the last 30 days. This shows increased interest in mid-sized cryptocurrencies like ATOM. However, Bitcoin still holds a dominant market share at 56.83%, which limits how much altcoins can rally aggressively.
What this means: ATOM’s 3.44% gain over the past month reflects selective investor interest in projects focused on interoperability (connecting different blockchains). Still, overall market sentiment is cautious, as shown by a neutral Fear & Greed Index.
Conclusion
ATOM’s recent price rebound is supported by strong technical factors and important upgrades within its ecosystem. However, the broader cryptocurrency market remains cautious.
Key points to watch:
- Can ATOM stay above the $4.60 support level if Bitcoin tests its $119,000 support?
- Progress of the Persistence Chain upgrade.
- Volume of Inter-Blockchain Communication (IBC) transactions, which indicate network activity and adoption.
Monitoring these factors will help gauge ATOM’s potential for sustained growth.
What could affect the price of ATOM?
The future of Cosmos (ATOM) depends on changes to its token economics, clearer regulations, and wider use of its technology.
- Tokenomics Changes – Plans to lower inflation from 10% to 2-4% could make ATOM more scarce.
- Regulatory Challenges – A lawsuit from the SEC could lead to ATOM being removed from U.S. exchanges.
- Growing Ecosystem – Ripple’s integration of Cosmos technology boosts ATOM’s usefulness.
In-Depth Look
1. Tokenomics Changes (Mixed Effects)
What’s happening: A recent forum discussion suggests cutting ATOM’s staking rewards from about 10% to 2-4%, similar to Ethereum, to reduce selling pressure. Right now, ATOM’s inflation rate is around 7-10% per year, which some say makes it more attractive for earning rewards than for price growth. Other ideas include faster transaction times (1.5 seconds per block) and adding smart contracts (CosmWasm) to attract developers.
What it means: Lower inflation could make ATOM more valuable by limiting how many new tokens are created. But if rewards drop too quickly, some network validators might leave, which could hurt security. A similar proposal in 2022 failed and caused ATOM’s price to fall by 30%.
2. Regulatory Challenges (Potential Downside)
What’s happening: The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase that includes classifying ATOM as a security. If the court agrees, major U.S. exchanges like Coinbase and Kraken might stop listing ATOM, similar to how Binance removed XMR. Currently, about 85% of ATOM’s daily trading volume ($119 million) comes from Binance and Bybit, so losing U.S. exchange support could reduce liquidity significantly.
What it means: The threat of delisting creates ongoing uncertainty for investors. However, demand from outside the U.S., especially Asia where 62% of ATOM holders are located, might help keep the market stable if the legal process takes time.
3. Growing Ecosystem (Positive Opportunity)
What’s happening: Ripple recently launched an XRPL EVM sidechain using Cosmos SDK and IBC technology, opening up decentralized finance (DeFi) on Ripple’s $127 billion network. Additionally, the Persistence Chain’s upgrade in September 2025 adds Bitcoin-level security, making Cosmos more attractive for cross-chain projects.
What it means: As more blockchains (over 200 currently) adopt Cosmos technology, demand for ATOM to participate in staking and governance could increase. However, the success of this growth depends on wider adoption of Interchain Security (ICS), which currently only a few projects use, contributing less than 5% of ATOM’s fees.
Conclusion
Cosmos (ATOM) faces a balancing act: reducing inflation without losing validators, navigating regulatory risks, and turning technology adoption into real value. Keep an eye on upcoming governance votes in Q4 about tokenomics and fee-sharing upgrades. The big question is: Can Cosmos shift from being just an “infrastructure provider” to a “value accumulator” before competitors like Polkadot catch up?
What are people saying about ATOM?
Traders of Cosmos (ATOM) are closely watching important price levels as new developments in the ecosystem bring cautious optimism. Here’s what’s happening:
- Potential breakout – Experts suggest ATOM could jump 30% if it stays above $4.35
- Big institutional plans – A $300 million Ethereum treasury strategy hints at growing connections between blockchains
- Ecosystem growth – Coinbase’s integration with dYdX highlights Cosmos’ increasing importance
Deep Dive
1. @ali_charts: Triangle pattern signals bullish move
"Cosmos $ATOM triangle consolidation nearly at the apex. Watch for a 30% move!"
– @ali_charts (288K followers · 1.2M impressions · 2025-08-30 03:08 UTC)
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What this means: This is a positive sign for ATOM. The price is forming a symmetrical triangle, a pattern that often leads to bigger price moves. If ATOM breaks above $4.80, it could rise toward $6.
2. CoinMarketCap News: $300M Ethereum treasury plan boosts confidence
"JUST IN: #Cosmos Health has secured up to $300M to launch an Ethereum-based treasury reserve strategy"
– CoinMarketCap (8.2M followers · 45K impressions · 2025-08-07 05:50 UTC)
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What this means: This is good news for ATOM. A large, institutional-level treasury plan using Ethereum shows growing demand for assets that can work across different blockchains, highlighting Cosmos’ real-world use.
3. Yahoo Finance: Coinbase’s dYdX integration adds momentum
"Coinbase adds dYdX native network integration...investors rotating into Cosmos projects"
– Yahoo Finance (2025-08-11 04:01 PM UTC · 850K impressions)
View original post
What this means: This is positive for ATOM. Coinbase’s support for dYdX on Cosmos shows confidence in Cosmos’ technology, which could attract more developers and projects to the network.
Conclusion
The outlook for ATOM is mixed. Technical indicators suggest a possible breakout above $4.80, but some investors are waiting to see how well the treasury plans and developer activity play out. Keep an eye on the $4.35 support level—holding above it could mean buyers are stepping in, while falling below $4.20 might trigger sell-offs.
What is the latest news about ATOM?
Cosmos is moving forward with important upgrades and handling market ups and downs while preparing for growth across multiple blockchains. Here are the key updates:
- Persistence Chain Upgrade (September 9, 2025) – A multi-step update to improve security and support Bitcoin integration.
- ATOM Price Volatility (August 14, 2025) – A sharp 9% price drop with strong buying support around $4.60.
- DEX Perpetuals Growth (August 25, 2025) – The Cosmos-based dYdX appchain reaches $200 million in daily trading volume for derivatives.
Deep Dive
1. Persistence Chain Upgrade (September 9, 2025)
What happened: The Persistence Core-1 blockchain started a multi-phase upgrade to a newer version of the Cosmos software (SDK v0.53.x), replacing the older v0.47 version. This upgrade focuses on improving security, making it compatible with Babylon’s Bitcoin staking system, and aligning with Cosmos Hub’s standards for liquid staking. The upgrade will happen in four stages over about 12 weeks to avoid disrupting users of stkXPRT tokens.
Why it matters: This upgrade strengthens Cosmos’ ability to integrate Bitcoin across different blockchains, making Persistence a key hub for liquidity. Over time, this could attract more Bitcoin-focused decentralized finance (DeFi) projects to the Cosmos ecosystem.
(Persistence Blog)
2. ATOM Price Volatility (August 14, 2025)
What happened: The price of ATOM dropped sharply by 9% in one day, falling to $4.49 on very high trading volume—more than three times the usual amount—mainly due to large institutional sell-offs. However, buyers stepped in to support the price around $4.60, keeping it stable between $4.59 and $4.62 after the sell-off. The next resistance level, or price ceiling, is at $4.91.
Why it matters: The $4.60 price level is now an important support point, acting like a floor that helps prevent further drops. If this level doesn’t hold, the price could fall back to lows seen in June near $4.30. On the other hand, if ATOM breaks above $4.91, it could signal a fresh upward trend.
(CoinDesk)
3. DEX Perpetuals Growth (August 25, 2025)
What happened: The dYdX appchain built on Cosmos reached $200 million in daily trading volume for perpetual derivatives contracts. This growth is powered by fast transaction settlements (under one second) and the ability to trade with up to 60 times leverage, thanks to Orbs’ Perpetual Hub technology. This reflects a wider trend of traders moving toward decentralized, non-custodial derivatives platforms, with volumes up 150% year-over-year.
Why it matters: Cosmos is becoming a popular platform for derivatives trading infrastructure. This success could increase demand for ATOM tokens, either through fees generated or staking to secure these appchains.
(Bitrue)
Conclusion
Cosmos is balancing important technical upgrades, like Persistence’s software update, with market challenges such as ATOM’s price swings. Meanwhile, its appchains are benefiting from the growing interest in decentralized derivatives trading. The big questions are whether Babylon’s Bitcoin integration and the rise of decentralized exchanges can boost ATOM’s role in this evolving ecosystem. Keep an eye on the $4.60 support level and how the new SDK adoption progresses in the fourth quarter.