Altcoin

Cosmos: Taking a short position on ATOM? Read this to get a clear picture

Published

2 years ago

on

Source: StockAI

  • Osmosis outperforms other DEXes in terms of development activity
  • Despite this, Cosmos’ TVL continues to decline, along with its trading volume

Osmosis, a DeFi project on the Cosmos blockchain, could be imperative for the latter’s growth in the DeFi space. This was because Osmosis managed to take a lead among DeFi protocols, such as MakerDAO and Lido in terms of development activity over the last few days.

Read Cosmos’ [ATOM] price prediction 2022-2023

As can be seen from the image below, Osmosis’ GitHub witnessed a spike, which suggested that its developers were actively contributing towards its GitHub. This growing activity could help Osmosis expand even further and have a positive impact on Cosmos’ DeFi efforts.

Source: Santiment

Not all good news for Cosmos

Unfortunately, at the time of writing, Cosmos was unable to perform well in the DeFi sector. Furthermore, as can be seen from the image below, it can be observed that the blockchain’s total value locked (TVL) depreciated substantially over the past few weeks.

As of 19 November,Cosmos’ total value locked stood at $411,310, having depreciated by 1.11% between 18 and 19 November.

Source: DefiLlama

However, even though Cosmos did not grow in the DeFi space, stakers continued to show an interest in it. The number of stakers on the Cosmos network grew by 0.15% over the last seven days. They were generating a reward rate of 19.25% at the time of press, according to data provided by Staking Rewards

.

Source: Staking Rewards

Despite the increase in the number of stakers, the overall fees generated by Cosmos depreciated by 30.6% in the last seven days, according to Token Terminal.

Cosmos’ volume continued to depreciate as well, plummeting all the way from 283 million to 98 million over the course of a week. Its market cap followed suit and declined along with the volume.

Source: Santiment

These negative factors, coupled with the overall FUD surrounding the crypto market, had a detrimental impact on ATOM’s price. 

At the time of writing, ATOM was trading at $9.98. Its price had appreciated by 1.75% in the last 24 hours, according to CoinMarketCap.

Take a Survey: Chance to Win $500 USDT