Polkadot’s XCM upgrades enhance cross-chain interoperability, boosting parachain activity (XCM transfers up 150% in Q4 2024) and developer engagement (2,100 devs). This supports DOT’s price recovery, targeting $15-$20 by mid-2025. Cosmos’ IBC protocol drives flexibility, with $8B TVL, but fragmented liquidity and weaker security limit ATOM’s edge. DOT’s shared security model and governance attract institutional interest, giving it a competitive advantage despite Cosmos’ developer-friendly SDK. Both face Ethereum’s dominance, but Polkadot’s scalability positions it stronger.