Connect with us


Cosmos Hub reaps the benefits of Terra’s new update – Here’s how



Cosmos Hub reaps the benefits of Terra's new update - Here's how
Source: StockAI

  • 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.

Is your portfolio green? Check out the ATOM Profit Calculator

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.

Source: Defi Llama

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.

Source: 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.

Source: Santiment

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

Source: Coinglass

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.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.

Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.