Will This Cryptocurrency Be the STEPN of 2023?

Of many ways, STEP (GMT 2.20%) has been one of the most prominent success stories for the crypto community in 2022. Since its launch in March, STEPN is up approximately 320% for the year. What makes STEPN stand out is that it pioneered a whole new concept: move-to-win games. Until this year, if you had told someone that you could earn crypto by buying a pair of digital sneakers online and then going for a walk around your neighborhood, people would have thought you were crazy. But the idea was so novel that investors immediately understood its importance.

So what could be a kind of similar concept that will captivate the crypto community next? This must be more than just “the next non-fungible token (NFT) project” or the “next big meme coin”. This should be a huge macro story that impacts the entire blockchain and crypto industry and encourages investors to think big about crypto in 2023. One such story could be the concept of “Internet of Chains”. of blocks” of Cosmos (ATOM 967.01%).

What is the Internet of Blockchains?

A big problem facing the blockchain and cryptocurrency industry right now is interoperability, and this is exactly the problem that Cosmos is trying to solve. Quite simply, different blockchains have a hard time communicating with each other. Sending digital assets from one blockchain to another can often be unnecessarily complex or expensive. So Cosmos is trying to become the blockchain that helps cryptocurrencies communicate with each other. He is calling his approach the “Internet of Blockchains.”

Image source: Getty Images.

The concept of interoperability may sound simple and obvious, but it is not. Most people don’t realize how difficult it is to exchange data and digital assets (such as NFTs) between blockchains that are not compatible. It would be as if two people could not communicate because they are using phones with different mobile operating systems. Or think of two people who can’t email each other because they’re using different email clients.

Interoperability is a pressing technology issue right now, and that’s why the Internet’s approach to Blockchains could be so important to Cosmos if it manages to solve this problem. Using the Inter-Blockchain Communication (IBC) protocol, for example, two different blockchains can seamlessly exchange data and assets. With the Cosmos Software Development Kit (SDK), blockchain developers can easily create application-specific blockchains that connect to the Cosmos ecosystem. Some of the highest profile blockchains in the world, including Chronos (CRO -0.39%)which is the blockchain for Crypto.com, have been created using Cosmos SDK.

Cosmos investment thesis takes off

One of the reasons I think the move-to-win story took off this year is that it was such an easy concept to grasp. You didn’t have to understand anything about blockchain architecture or crypto governance tokens to understand that it’s a fun gaming experience that can also make you money. This resulted in an incredibly attractive investment thesis for putting money into STEPN.

So it was interesting that in August 2022, New York-based investment manager VanEck came up with a $140 price target for Cosmos, based largely on the concept of blockchain interoperability. This, of course, raised a lot of eyebrows, given that Cosmos is currently trading at only around $15. What did these money managers in New York know that most retail investors didn’t? Suddenly, YouTube crypto influencers started posting videos online about Cosmos preparing to explode in 2023.

Can Cosmos really become the next STEPN?

Now, this is not to say that Cosmos will become the next STEPN. Cosmos is still relatively small, with a market cap of just over $4 billion, and many people have probably never heard of it. And there are many other developer communities working on the concept of blockchain interoperability as well, so there is a lot of competition for Cosmos.

However, based on our collective experience around move-to-win games, it’s possible to see how an incredibly high crypto concept can become “sexy” if people make money off of it. Could the same thing happen with Cosmos? In the last 30 days (around the time of the VanEck report), Cosmos is up 30%.

For now, I’m taking a wait-and-see approach with Cosmos. I still need to dig deeper into the technical specifications of Cosmos. But I am definitely paying attention now that Cosmos ranks as one of the top performing altcoins of the last month. I’ll watch the upcoming Cosmoverse 2022 conference in late September and put Cosmos on my watch list for the rest of the year.

dominic basult has no position in any of the mentioned stocks. The Motley Fool has positions and recommends Cosmos. The Motley Fool has a disclosure policy.

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