Cosmos Hub reaps the benefits of Terra’s new update – Here’s how
- Terra’s Mars Protocol launch boosts Cosmos Hub’s DeFi potential.
- However, there was declining revenue and staker interest in Cosmos network despite TVL growth.
In an announcement on January 20, Terra [LUNC] stated that it would launch its lending protocol, known as Mars Protocol, on Cosmos Hub‘s network. This move could have a positive impact on the Cosmos [ATOM] network’s presence in the DeFi sector, as it would bring in a new lending protocol to the network.
The Mars Protocol is set to launch its independent Cosmos appchain on 31 January, 2023, and it will have its own native token, MARS.
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The DeFi impact on Cosmos
According to DeFi Llama, the Total Value Locked (TVL) on the Cosmos Hub had increased steadily, from $376,543 to $720,2303. This new Mars Hub development could add to this growth and significantly improve Cosmos Hub’s presence in the DeFi space, attracting more users and increasing the overall value locked on the network.
However, despite the increasing TVL, the revenue generated by Cosmos had declined steadily. Based on data from Token Terminal, it was observed that the revenue generated by the Cosmos Hub declined by 11.6% in the last 30 days.
This decline in revenue could be a cause of concern for the Cosmos network, as there may be a lack of interest in it, which could affect its overall sustainability.
In addition to the decline in revenue, stakers also lost faith in the Cosmos network, as the number of stakers decreased by 78.82%, as per Staking Rewards.
All these factors have also impacted the ATOM token. According to data from Santiment, the volume of ATOM fell from 611 million to 225 million in the last month. This decline in volume could indicate a lack of interest in the token, thereby affecting its total value.
On the brighter side
However, ATOM’s development activity increased during this period. The number of contributions being made by developers on Atom’s GitHub grew. This could mean that new upgrades and updates on the Atom network could be made in the near future, which could regenerate interest in ATOM.
Additionally, according to Coinglass, a majority of the top traders were optimistic about ATOM’s future, as 51.2% of the traders decided to go long on the token at press time.
Read Cosmos’ [ATOM] Price Prediction 2023-2024
The price of ATOM at the time of writing was $13.37, having increased by 2.38% in the last 24 hours. While the launch of the Mars Protocol could bring new opportunities to the Cosmos network, it remains to be seen if it will be enough to overcome the decline in revenue and stakers and revive interest in the ATOM token.