- Cosmos’ interchain includes the Polkadot network.
- ATOM bears dominate as the price entered a post-rally cooldown.
Thursday, June 29 was an important day for the Interchain community. Cosmos has announced that Polkadot is the latest addition to Interchain. Let’s see why this integration is a huge step in the right direction for DeFi.
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Let’s summarize some of the jargon first. Interchain is the internet of blockchains. Meanwhile, Polkadot is a layer zero blockchain that acts as the support structure for layer 1s.
Now it’s Polka Dot affiliated with Interchain, it will be easier for Interchain projects to access those layer 1 networks. Meanwhile, the Polkadot community can now access liquidity from other projects.
Polkadot’s architecture makes it ideal for enterprise/private blockchain development. The main significance of the Polkadot integration in Interchain is the growth opportunities it has to offer once enterprise blockchain goes mainstream.
In other words, DeFi is now better prepared for enterprise adoption, which is an important step toward mass adoption.
Assessing the potential impact on ATOM’s performance
An added benefit of the development is that it could positively impact ATOM price action. First, more utility for the cryptocurrency through the Polkadot ecosystem could fuel more demand for ATOM. The development itself could be enough to fuel more investor confidence. Interestingly, Cosmos ATOM was LunarCrush’s coin of the day on June 29.
The above developments have not limited the downside of ATOM so far. The cryptocurrency began a bearish performance this week after previously posting a healthy rally in mid-June. ATOM was trading at $1.98 at the time of writing after an 8% dip from its weekly high.
Source: TradingView
ATOM’s Money Flow Index (MFI) already indicated that the cryptocurrency was experiencing an outflow. Meanwhile, the Relative Strength Index (RSI) was a good indicator for a turning point as the price turned bearish after reaching the RSI midpoint (50% level).
ATOM’s price action over the past few days has been unsurprising given low investor sentiment in favor of upside potential. The weighted sentiment metrics showed no shift in direction. This confirmed that investor sentiment remained unchanged.
Source: Sentiment
How much are 1,10,100 ATOMS worth today
ATOM’s on-chain volumes also remained within normal range for the month. A sign indicating that the question remains unchanged.
Since speculative demand has yet to take hold of ATOM (at least not yet), the bulls may have to wait a bit longer. However, that wave of demand may still be in the pipeline, especially as the market enters a new month.