ATOM may be the token of the hour and Cosmos’ efforts could be why
Amidst market uncertainty, CosmosHub has attracted a significant number of users, with liquid staking and protocol upgrades contributing to its appeal.
- CosmosHub witnessed a surge in user activity despite crypto market turbulence.
- Liquid staking and protocol upgrades drove interest in Cosmos’s native token, ATOM.
Cosmos [ATOM], amidst market turbulence, has managed to attract a notable influx of users to its protocol. This surge in user activity was particularly noteworthy, as it counters the prevailing uncertainty within the cryptocurrency market.
Realistic or not, here’s ATOM’s market cap in BTC’s terms
A surge in activity means…
Over the past month, CosmosHub experienced a significant uptick in daily active users, reflecting a positive trend in terms of user engagement and adoption. This surge can largely be attributed to the introduction of liquid staking on CosmosHub, a feature that has garnered considerable interest within the crypto community.
Protocols w/ the biggest 30d uptick in DAUs:
1. @friendtech ? 298.4%
2. @AcrossProtocol ? 281.5%
3. @cosmoshub ? 124.0% pic.twitter.com/VGAwt9q1aN— Token Terminal (@tokenterminal) October 7, 2023
Liquid staking offers users the ability to stake their ATOM tokens while still retaining liquidity. This enables them to participate in the broader cryptocurrency market. This innovative approach combines the benefits of staking, such as earning rewards, with the flexibility to trade or utilize tokens as needed.
To manage the inherent risks associated with liquid staking, CosmosHub implemented governance-controlled parameters. Additionally, validators seeking delegations from liquid staking providers were required to self-bond a specified amount of ATOM. These measures enhance security and stability within the network.
In parallel with these developments, CosmosHub’s governance proposed a new protocol upgrade, designated as v13. This upgrade encompasses two significant changes. Firstly, it involves the removal of outdated code linked to the Gravity Dex Liquidity module, which was disabled earlier in the year. Secondly, v13 introduces an update to the Interchain Security provider module, enhancing the security framework of the Cosmos Hub.
1/ ⚛️ Cosmos Hub Gov ⚛️
Voting period is now open for Proposal #825
“v13 Upgrade”
Cosmonauts, this is a software upgrade proposal, if approved, the upgrade is expected to go on mainnet in October. pic.twitter.com/JCJzZUXdY9
— Cosmos Hub ⚛️ (@cosmoshub) September 26, 2023
While these upgrades hold the potential to bolster the platform, they also introduce the possibility of unforeseen issues or bugs. In the event of serious problems, validators are poised to respond promptly by discontinuing network operations.
Sentiment around ATOM improves
Despite the promising developments, the price of ATOM, CosmosHub’s native token, experienced a decline over the previous week. At the time of reporting, ATOM was trading at $6.708.
Is your portfolio green? Check out the Atom Profit Calculator
On a more positive note, the weighted sentiment surrounding ATOM showed improvement. This suggested that the crypto community was increasingly expressing positive sentiments and discussions about ATOM, thus outweighing the negative ones. This shift in sentiment could signify growing confidence and interest in the Cosmos ecosystem.
