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Ethereum v. Cosmos endgame begins, which altcoin has potential for 300% gains

  • 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

Ethereum Price Prediction by Finder experts

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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