Cosmos [ATOM]: Institutional investment drowns as traders eye longs, more inside
- Outflow from Cosmos Hub’s institutional investment hit highs despite retail trading interest.
- Traders continued to prefer long positions even as liquidations skipped the short sell.
Cosmos [ATOM], whose objectives centered around an interconnected economy of blockchains, were part of the assets that experienced massive institutional outflows over the previous week.
According to CoinShares’ weekly fund flow report, Cosmos’ outflows in this regard were about $1.6 million. This made it the third project with the highest exit, behind Bitcoin [BTC] and Ethereum [ETH].
Read Cosmos’ [ATOM] Price Prediction 2023-2024
Exits do not hold traders down
Despite the development, ATOM gained 9.34% in the last seven days. The rise in value also helped traders maintain a positive status quo towards the cryptocurrency. At press time, the Binance funding rate resisted the red area and stayed put at 0.01%.
The metric describes the periodic payments gotten by long or short traders based on the difference between open contracts and spot prices. So, the 0.01% position implied that ATOM traders got a premium interest rate per finding interval.
On Open Interest (OI), Coinglass’ data revealed that a lot of traders were actively participating in the ATOM pairs market. At the time of writing, the futures market OI was green in the last one to four hours across the top exchanges.
In addition, the top position held by traders in the derivatives market was mostly long. However, a minute part of the lot was undecided. This might not be surprising, especially as ATOM’s price consolidated over the last 24 hours.
But in terms of liquidations, longs have also been the casualties – this has been the case since 16 February. The last time shorts significantly suffered for their open positions was 15 February. During this time, traders suffered $432,000 worth of long liquidations. However, Coinglass showed that the market wiped only $39,780 over the previous 24 hours.
Steadfast despite the challenges
Recently, the Interchain Foundation, which is the team building the Cosmos blockchain, reiterated its dedication to supporting its stack.
1/ 2023 is an exciting year for the Interchain.
It’s an opportunity to rebuild from the uncertainty of 2022.
Rebuild infrastructure, goals and trust.
Today, we share our 2023 funding overview, reinforcing our commitment to support the Interchain Stack. pic.twitter.com/AH3hpHp2kl
— Interchain Foundation (@interchain_io) February 20, 2023
How much are 1,10,100 ATOMs worth today?
The Foundation noted that the market downsides of 2022 would not stop it from supporting further adoption and real-world use cases. The announcement mentioned,
“Even during this challenging period for the blockchain space, we remain committed to supporting core technologies.”
In response to the assurance, Cosmos’ development activity rose over the last few days. The metric defines how committed a project is to sustaining upgrades on its network.
However, there has been a decline lately but might not be considered as a noteworthy downside to Cosmos’ support. Meanwhile, its total NFT volume reached a one-week high of $846,000 on 20 February based on data from Santiment.