Cosmos ($ATOM) Pumps on Staking News:Is Now The Right Time to Invest Despite Security Concerns?

Cosmos ($ATOM) jumped 10% on Friday, March 29, after eToro announced it would support staking for the token, pushing the price to a local high of $4.86.

eToro’s new staking support for Cosmos ($ATOM) and Polkadot ($DOT) allowed eligible users to earn rewards by holding the tokens, triggering the price spike.

Despite the rally, the token remains down 57.3% year-to-date, making it one of the weaker performers among the top 50 cryptocurrencies.

Cosmos Expands Ecosystem and Cross-Chain Capabilities

Cosmos has continued building out its vision of becoming an “Internet of Blockchains,” focused on improving cross-chain communication and data exchange.

A major development came on March 18, when the Interchain Foundation, a key organization within the Cosmos ecosystem, open-sourced Evmos.

This move solidified it as the network’s native Ethereum Virtual Machine (EVM) framework.

Originally launched in 2022 as a continuation of the Ethermint project from 2016, Evmos provides Ethereum compatibility across more than 200 appchains within Cosmos’ multichain structure.

Another key development involved native stablecoin issuance. In November 2024, asset issuance chain Noble and fiat issuer Monerium launched the first Euro-backed stablecoin on Cosmos.

This stablecoin is fully interoperable and can be swapped with $USDC across any blockchain integrated with Cosmos.

Lazarus Allegations Spark Investor Unease

Reports linking some Cosmos contributors to the Lazarus Group triggered investor concerns.

The Lazarus Group is a North Korean cybercrime organization believed to be behind major hacks such as the $600 million Ronin bridge exploit.

In response, Informal Systems—a core Cosmos development team—proposed a “phased removal” of the Cosmos Liquid Staking Module (LSM), which handles staking and governance functions.

The proposal includes replacing the module with a new validator and governance framework designed to strengthen security and build trust in the network.

Speculation alone has dragged down market sentiment. From its peak above $44 during the 2021 bull run, $ATOM has lost over 80% of its value.

Technical Analysis – Support Holds, But Reversal Still Uncertain

AtAt the time of writing, Cosmos ($ATOM) is trading at $4.69, up 9.32% on the day.

The token has remained in a downtrend since falling below $10, though recent movement suggests a possible base forming around $4.

ATOM/USDT Chart forming a base at $4 Psychological Level / Source: TradingView

Key support is seen at $4.00, with immediate resistance at $5.00.

MACD momentum is flat, sitting near the neutral line. A bullish crossover could indicate an early trend reversal.

$ATOM appears to have formed a double bottom pattern between September 2024 and March 2025, a commonly watched bullish setup.

However, a break below $4.00 would invalidate this structure and signal continued downside.

If $ATOM holds above $5.00 and breaks resistance, a move toward the $5.50–$6.00 range could follow, pointing to a shift in short-term sentiment.

While recent staking support and technical developments have sparked interest in Cosmos, concerns about governance and security continue to affect investor confidence.

Traders may want to watch for confirmation above $5.00 before considering further upside.