- Canto DEX set a new record with a $63.2 million transaction volume.
- An increase in development activity and ATOM’s volume suggests good days for the Cosmos network ahead.
The Cosmos-based L1 blockchain Canto DEX recently set a new record with its transaction volume reaching $63.2 million, surpassing the likes of Solana and Fantom.
In addition to the success of the Canto DEX, an influx of other DeFi projects launched on the Cosmos network. This has further solidified the position of Cosomos as a leading L1 blockchain solution in the DeFi space.
Read ATOM’s Price Prediction 2023-2024
Still a long way to go for Cosmos
Despite the success of the Canto DEX and the influx of new DeFi projects, the overall TVL of Cosmos declined. This could be due to a lack of liquidity or a lack of interest in the network.
Source: Defi Llama
Now, even though the TVL of Cosmos declined, the number of stakers on the Cosmos network continued to grow. It increased over the last 30 days by 0.62% according to Staking Rewards.
This is a positive indicator as it shows that more users are becoming involved in the network. And, in fact, these users were observed to be actively participating in the network’s growth.
Source: Staking Rewards
Interest in the token grows
Furthermore, there was a healthy spike in ATOM’s volume over the past few days. Coupled with that, the development activity on the Cosmos network also witnessed a massive surge.
This implied that the number of contributions being made by developers to the Cosmos GitHub had increased.
Source: Santiment
However, despite the increase in development activity, the market cap dominance for ATOM tumbled. According to Messari, the token’s market cap dominance fell by 21.99%. This could be a result of increased competition from other blockchains in the crypto space.
Realistic or not, here’s ATOM’s market cap in BTC’s terms
Another factor to consider is the volatility of the alt. Note that as the volatility of a token increases, it can become more challenging for traders to predict its price movements.
This could lead to a decrease in the number of traders willing to hold onto ATOM for the long term- Something that can negatively impact the token’s overall performance.
Source: Messari
Despite the decline in market cap dominance and the increase in volatility, the price of ATOM has been on the rise. At the time of writing, ATOM was trading at $2.27, and its price increased by 13.30% in the last 24 hours according to CoinMarketCap. This could be a sign that the market is optimistic about the future of the Cosmos network and its potential for growth.
