- Ethan Buchman cofounder of Inter-Blockchain Communication (IBC) announced the discovery of a major security flaw affecting all IBC-enabled chains on Cosmos.
- Crypto hedge funds have increased their purchase of Cosmos in recent weeks as it offers better yield than Ethereum.
- Analysts believe Ethereum price is ready for another leg up, eye $1,400 target before explosive breakout.
Cosmos chains are facing a crisis due to a major security vulnerability in Inter-Blockchain Communication (IBC). The smooth execution of Ethereum’s Merge has brought the two competing blockchains closer in their consensus mechanism and future roadmap. Analysts debate over the bullish potential of Ethereum and Cosmos.
Also read: Shiba Inu price: Will SHIB price double with 20 million daily token burn?
Ethereum v. Cosmos: Which blockchain is endgame?
Ethan Buchman, co-founder of IBC ecosystem announced a “major security flaw” that impacts all IBC-enabled Cosmos chains, for all versions of the IBC. Inter Blockchain Communication, or IBC, is a trust-minimized data transport layer for communicating between chains. There is an interchain app-layer built on top of IBC.
The security flaw in question was first noticed after the $100 million cross-chain bridge hack on Binance chain. core developers of Cosmos and Osmosis, two decentralized exchanges, increased their security audits in response to the hack.
Buchman assured users that all significant public IBC-enabled chains have been fixed. The remaining chains need to patch to two-thirds, once an official patch is released.
Cosmos and Ethereum have both split from the common blockchain ancestor, Bitcoin. Both have iterated their own respective roadmaps and their endgames have begun to converge on multiple zones.
Over 50 chains in the Cosmos ecosystem are connected by IBC and smart contracting has found multiple use cases, similar to Ethereum. Simultaneously, Ethereum’s transition to proof-of-stake is similar to Cosmos’ Tendermint.
Tendermint is a blockchain protocol used to replicate and launch blockchain applications across machines in a secure and consistent manner. Cosmos, Binance Smart Chain and Tezos are a few projects that use Tendermint. As Ethereum and Cosmos approach their endgame, the two blockchains are converging in several zones. The line between appchains and rollups is becoming increasingly thin as the two have similar outcomes, and the two blockchains have adopted different approaches to attain sovereign interoperability.
Why hedge funds are leaning towards Cosmos over Ethereum?
Modular Asset Management’s crypto hedge fund has been purchasing Polkadot and Cosmos in increasing volume, over Ethereum. According to the fund, Polkadot and Cosmos have stronger suitability characteristics and potential to outperform after the $2 trillion shakeout that hit the crypto ecosystem recently.
Daniel Liebau, Chief Investment Officer of Modular Asset Management told users in an interview that the fund has increased its purchase of Cosmos through the recent dip in the token’s price.
Ethereum price has the potential for explosive rally
Experts at financial comparison site Finder evaluated the Ethereum price trend and predicted a massive rally in the altcoin. They argue Ethereum price could pick up bullish momentum in 2023 and 2024 and climb from current levels to previous all-time high of $4,000. Finder’s analysts have set a target of $11,700 for 2030 and a steep climb in the altcoin’s price in the period between 2025 to 2030.
Ethereum Price Prediction by Finder experts
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Ethereum whales turn bullish with Shanghai upgrade less than a month away
Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit
Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?
Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?
Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.