Our bullish thesis on Cosmos’ ATOM token centers around the power of the Cosmos SDK, the importance of IBC, the clear product market fit of the Cosmos Hub, and strong token value accrual.IBC is a superior technology that relies upon several unique components enabled by the Cosmos SDK underpinning each Cosmos chain.To tie together our blockchain projections to value accrual of the ATOM token, we then assume Cosmos ecosystem blockchains represent 33% of all future blockchains and estimate that the Cosmos Hub secures 50% of Cosmos blockchains.Our bullish thesis on Cosmos’ ATOM (ATOM-USD) token centers around the power of the Cosmos SDK, the importance of IBC, the clear product market fit of the Cosmos Hub, and strong token value accrual.Based on our discounted cash flow analysis of potential Cosmos ecosystem value in 2030, we arrived at a $140 price target for the ATOM token, with a downside to $1. With ATOM’s price at $10 as of 8/2/2022, we like the 14-1 odds presented and believe this is a buying opportunity for the token.To arrive at the model’s assumptions, we found it helpful to answer the following questions.An Introduction to the Cosmos Hub: What Is a Layer 0?A layer 1, smart contract blockchain like Ethereum (ETH-USD) is simply an enterprise platform that hosts decentralized applications while enabling payments between users. Ethereum generates revenue by charging deployers of smart contracts storage fees while exacting a...
