Osmosis increases the performance of Cosmos and the value of ATOM. ATOM saw its volume decrease but development activity increased.
Osmosis, a DEX on the Cosmos Hub protocol, has seen improvements in recent times few days.
It outperformed other players like Avalanche and Optimism in terms of daily activity, reaching around 50,300 daily users, according to the token terminal’s data.
This growing activity on osmosis could have a significant impact on the Cosmos protocol.
Read ATOM’s price forecast 2023-2024
The increased daily activity on Osmosis suggested a growing interest in the platform.
Get active
At the time of writing, daily active users on the Cosmos network were increasing. In the past month, the number of users has grown by 23.6%. This increase was a positive sign for the Cosmos protocol and showed that the platform was attracting new users.
The increase in the number of users is also likely to drive more transactions to the network, which would further increase the revenue generated by Cosmos Hub.
Source: token terminal
Despite the growth of the Cosmos ecosystem, the number of ATOM deployed on the network declined. According to Staking Rewards, the percentage of ATOM stakes has dropped over the past month.
At the time of writing, the number of strikers on the Cosmos protocol was 744,444. ATOM’s decline in deployment could suggest that some users are losing trust in the network.
Source: Staking Rewards
Looking at ATOM
Well, the growth of the Cosmos protocol also had a positive impact on ATOM’s price action. However, the declining volume could point to a bearish outlook.
Volume for ATOM fell from 347 million to 208 million last month, according to Santiment.
Despite the volume decline, ATOM’s development activity boomed. This suggested that Cosmos Hub’s developers were increasingly contributing to GitHub.
Source: Sentiment
The token’s price increase also affected its market cap, which increased by 23% over the past month, according to Messari. However, as time went on, volatility increased, making ATOM a risky buy.
How much are 1,10,100 Atoms worth today?
Source: Messari
The increase in market cap dominance was a positive sign for the token as it suggested that ATOM was becoming more popular among investors.
This post Assessment of the role of osmosis in ATOM’s short-term price trajectory
was published first on https://ambcrypto.com/assessing-the-role-of-osmosis-in-atoms-near-term-price-journey/
