Cosmos ($ATOM) Pumps on Staking News: Is Now The Right Time to Invest Despite Security Concerns?
Cosmos ($ATOM) rallied by 10% on Friday, hitting a local high of $4.86. The price increase followed eToro’s announcement that it had launched staking for Cosmos ($ATOM) and Polkadot ($DOT), allowing eligible users to earn rewards by holding the assets.
Despite the short-term price boost, $ATOM remains down by 57.3% year-to-date, placing it among the weaker performers compared to other top 50 cryptocurrencies.
Cosmos ($ATOM) Ecosystem Expansion and Interoperability Milestones
Cosmos continues to grow its vision of becoming the “Internet of Blockchains,” powering sovereign and interoperable decentralized applications. The network aims to streamline cross-chain communication and data exchange.
A major milestone came on March 18, when the Interchain Foundation, a key organization in the Cosmos ecosystem, open-sourced Evmos, solidifying it as Cosmos’ native Ethereum Virtual Machine (EVM) framework.
Originally launched in 2022 as a continuation of the Ethermint project from 2016, Evmos enables Ethereum compatibility across over 200 appchains in Cosmos’ multichain environment.
In a similar development, November 2024 saw asset issuance chain Noble and fiat issuer Monerium launch the first Euro-backed stablecoin natively on the Cosmos network. This stablecoin is fully interoperable and can be swapped with $USDC across any Cosmos-integrated blockchain.
Lazarus Allegations Spark Investor Unease
Despite the technical and ecosystem strides, Cosmos has recently faced negative press. Concerns have emerged following reports that some Cosmos contributors may have links to the Lazarus Group, a North Korean state-affiliated cybercrime outfit responsible for high-profile crypto exploits, including the $600 million Ronin bridge hack.
In response, Informal Systems, a core Cosmos development team, proposed a “phased removal” of the Cosmos Liquid Staking Module (LSM), the smart contract responsible for Cosmos governance and staking model.
The plan includes replacing it with a more secure governance and validator framework aimed at enhancing trust and network resilience. While the Lazarus Group connection remains unconfirmed, the mere speculation has weighed heavily on market sentiment. From its peak of over $44 during the 2021 bull run, $ATOM has lost more than 80% of its value.
Technical Analysis – Support Holds, But Reversal Still Uncertain
At press time, Cosmos ($ATOM) is trading at $4.69, up 9.32% on the day. The token has been locked in a long-term downtrend since losing support above $10, but is currently showing signs of base formation.
Key support lies around the $4.00 level, with immediate resistance at $5.00. The MACD indicator is hovering near the neutral line, suggesting that momentum remains indecisive. A bullish MACD crossover would signal the early stages of a potential trend reversal.
$ATOM appears to have formed a double bottom pattern between September 2024 and March 2025, a classic bullish indicator. However, if the price breaks below $4.00, it would invalidate this structure and confirm a continuation of the downtrend.
If $ATOM manages to hold above $5.00 and breach resistance, a move toward the $5.50–$6.00 range could follow, signaling a potential shift in momentum.