According to a well-known cryptocurrency analyst, Cosmos ($ATOM) could see a price increase of almost twofold if Ethereum’s upcoming Merge upgrade, which will see the network switch from its current Proof-of-Work consensus mechanism to a Proof-of-Stake consensus, sparks a cryptocurrency market rally.
The host of Coin Bureau, who released a video updating his 2.1 million YouTube viewers, claims that even if demand for ATOM has been declining throughout the bear market, it is currently being supported by two key factors by luring in new purchasers.
The upcoming Cosmos projects and the airdrops they give out to the cryptocurrency’s users, even though some are “only distributed to those who own or stake ATOM in participating wallets,” are the main demand drivers for ATOM, according to Guy, a pseudonymous analyst.
As a “bridge currency to all the emerging Cosmos ecosystems on more wide use case blockchains such as Evmos and Kava, which allow Ethereum smart contracts,” Guy continued, “these networks have hundreds of millions of dollars of total value locked on their smart contracts.”
However, Guy anticipates that if Ethereum’s long-awaited Merge upgrade passes without a hitch, ATOM’s price might roughly treble.