Cosmos closed September with an announcement that could set the pace for an exciting future. The blockchain network plans to roll out USDC natively on its interchain platform.
— Kosmos – Internet of Blockchains ⚛️ (@cosmos) September 29, 2022
Cosmos revealed that the development was part of the plan to expand the Interchain ecosystem. According to the update, USDC’s native rollout on the Interchain will benefit from Interchain Security.
Cosmos further stated that it expects the rollout will facilitate easier transfer of value within its interconnected ecosystem.
According to the announcement, working natively with USDC on Interchain will allow dapps to operate more efficiently. The network also expects the stablecoin rollout to boost migration to Interchain and facilitate favorable liquidity flow.
This could translate into increased utility and demand for the network and for the ATOM cryptocurrency.
A boost for ATOM bulls?
USDC’s native rollout on Cosmos could have a positive long-term impact on ATOM. Moreover, it could also have a positive effect in the short term, given the current position of ATOM and the fact that 2023 is only a few weeks away.
At the time of writing, ATOM was trading at $13.0 and is down 0.12% in the past 24 hours.
However, the September 30 chart showed that ATOM has been in an ascending price channel since mid-June and it just retested its current support.
In addition, ATOM’s $13.09 price on Sept. 30 also indicated investors piling up after the support retest. There were other factors pointing to an upward lead as part of the relief rally.
Such a result can be considered highly likely after ATOM’s bearish performance over the past two weeks.
In addition, numerous on-chain metrics supported the bullish outlook as the third quarter drew to a close. ATOM’s weighted sentiment metric registered a strong rise from Sept. 26 to its highest monthly level on Sept. 30.
Weighted sentiment confirmed that most investors were optimistic about ATOM’s price action after the support retest.
Social volume has already caught on, given the above observations, as well as the USDC announcement.
The Cosmos social volume measure registered a sharp rise on June 26, the same day weighted sentiment flipped. The volume metric maintained increased activity between September 27 and September 30. Collectively, these factors showed positive changes in ATOM’s on-chain demand.
It is currently unclear how big ATOM’s recovery rally will be after the support retest. A strong rally would require solid demand not only from the spot market, but also from the derivatives market.
Fortunately, the current conditions in the derivatives market are in line with the aforementioned observations.
Notably, Binance and ATOM’s FTX funding rates both fell from their four-week highs in the second week of September. They retested their lower monthly range earlier this week, but they’ve both flipped since then. This result confirmed the recovery in demand in the derivatives market.
The above combination of factors increased the likelihood of a bullish recovery, especially if bullish volumes continue. However, investors should keep an eye on the general market outlook in the first week of October.
Unexpected market events can trigger a negative result, triggering another shift in sentiment in favor of the bears.
This post Cosmos rolls out USDC natively via Interchain- ATOmic details inside
was published first on https://ambcrypto.com/cosmos-to-roll-out-native-usdc-through-interchain-atomic-details-inside/