ATOM is the official cryptocurrency of Cosmos, a popular crypto project that aims to create an ecosystem of blockchains. ALGO is the native token of Algorand, a self-sustaining network based on blockchain, which is decentralized and supports a wide array of apps.
Both cryptocurrencies are extremely popular and ranked high on Coinmarketcap based on their overall market cap, meaning investors are actively purchasing and trading both tokens. In the following guide, we’ll compare ATOM vs ALGO to help you decide which option is better for you.
Cosmos: Project Goals and Network Overview
Cosmos’ goal is to create the Internet of Blockchains, a similar aim to many other projects, except Cosmos has been doing it pretty well for years. At the moment, blockchains are scattered, and interoperability is minimal to non-existent, which is why it’s important to make transactions possible among them, and that’s exactly what Cosmos aims to do.
There are three different layers of Cosmos: application, networking, and consensus layer. The first one is responsible for processing transactions while updating info on the network state. The second layer makes communication possible between different chains and transactions. The consensus layer ensures that all nodes agree on the current state of the system.
ATOM Blockchain Technology
Cosmos uses a unique consensus mechanism to ensure that the network is running. It’s a combination of proof-of-stake called Tendermint Byzantine Fault Tolerance (BFT) consensus algorithm, and it allows validators to take turns when adding new blocks and to verify transactions on the blockchain.
It means that users with ATOM can stake their cryptocurrencies to the platform and, depending on the amount they staked, get responsibilities. Only the top 100 stakers can act as validators on the network.
ATOM Crypto Potential
ATOM is ranked #23 on Coinmarketcap based on its current market cap ($2.6 billion) and, thus, its popularity. The circulating supply is 286,370,297 ATOM, a number bound to change, given that there is no total supply limit for ATOM.
The all-time high price for a single unit of ATOM was $44.70 in September 2021. More than a year before that, the coin sunk to an all-time low of $1.13 per ATOM.
Algorand: Project Goals and Network Overview
Algorand is a blockchain-based network with ALGO as the native token. It can be described as self-sustaining and decentralized, supporting plenty of applications. Moreover, Algorand is built with scalability, efficiency, and security in mind.
So, what makes Algorand stand out from the pack? The network found a way to improve the overall efficiency and speed of blockchain-based transactions while excluding the mining operations from the process entirely, being based on a unique proof-of-stake consensus algorithm.
ALGO Blockchain Technology
Since it’s PoS-based, Algorand allows staking ALGO, which means that stakers can also become validators. Of course, anyone who stakes the popular crypto will also have a chance to earn it this way, as rewards are paid out in ALGO. The system is very much similar to other PoS options. ALGO is also used for paying transaction fees on the platform, meaning it can also be considered a utility token.
ALGO Crypto Potential
ALGO has been actively traded since 2019. It’s one of the few cryptocurrencies to have started with a huge price, and then the price dropped. Therefore, the recorded all-time high for ALGO is actually Jun 21, 2019, when the price was $3.28 per unit. The all-time low was reached less than a year after that, with $0.1024 per ALGO on March 13, 2020.
ALGO is the 32nd largest cryptocurrency based on its market cap, which is currently $1.2 billion. The max supply is 10,000,000,000, with a circulating supply of 7.1 billion (71%).
Investment Considerations for ATOM
First, you need to decide if ATOM is a good investment for you. If so, here are some things to keep in mind:
ATOM has a strong team and community. The team behind ATOM consists of leaders from top companies like Google and Facebook who are dedicated to making the internet more secure and private by building tools that allow users control over their online data privacy. They also have a large following on Twitter, Reddit, Telegram and Discord where they actively engage with their followers.
ATOM has a strong mission which means it will likely continue growing even after its token sale ends because there’s always going to be demand for better security solutions when it comes down to protecting user data online or offline (as long as those threats exist).
The name “Atomic Swaps” itself sounds pretty cool too when paired up against other cryptocurrencies like Bitcoin Cash or Litecoin which makes this project stand out even further than most others out there right now!
Investment Considerations for ALGO
A key consideration when investing in ALGO is its market capitalization. The market cap is the total dollar value of all outstanding shares on an exchange. You can use this number to determine how much of a company’s stock is owned by investors, and therefore how much control they have over decisions made by management and directors.
The current market cap for ALGO is $5 billion USD (as of October 3rd).
You’ll also want to look at how much has changed over the past month, as well as what analysts are predicting will happen next month and beyond that timeframe one year down the road would be ideal!
Risk Assessment and Market Outlook
The ATOM and ALGO projects are two of the most promising blockchain platforms in their respective spaces. They both have strong teams, supportive communities, and robust development plans that will help them achieve their goals.
However, there are several factors to consider when deciding which project you’d like to invest in. The first is what type of investment strategy works best for your needs? Are you looking for long-term returns or short-term gains? Is your goal to make money from trades or passive income through staking rewards? What kind of risk tolerance do you have for the cryptocurrency market as a whole?
These questions should be answered before making any decision about where your hard-earned money should go!
ALGO and ATOM are popular and potent cryptocurrencies. ATOM currently has a slight advantage, as it has been around longer and is trusted by more investors. If you want to learn more about similar projects and their tokens, check out our CRO vs SHIB comparison.