Connect with us


Will ATOM be affected with Osmosis’ move to Bitcoin? Assessing…



Source: Unsplash
  • Osmosis made improvements to its protocol, however, its TVL declined.
  • Despite Osmosis’ decline in TVL and revenue, Cosmos Hub remained unaffected

On 2 March, Messari revealed Osmosis‘ plans to integrate Bitcoin [BTC] into its network for additional security. Osmosis is a major part of the Cosmos [ATOM] ecosystem, and improvements in the Osmosis protocol could possibly be reflected in the Cosmos Hub.

Read Cosmos’ [ATOM] Price Prediction 2023-2024

Increasing security

Osmosis’ security would be working through checkpoints on the network. These checkpoints would be sent to Bitcoin through the Babylon chain, which would then be time-stamped by the network. Finally, other Cosmos zones will read these timestamps.

Despite Osmosis’ attempts to improve its ecosystem through security, the TVL of the network continued to decline. Over the last week, the total value locked by the Osmosis protocol declined from $214.19 million to $190.6 million, according to DeFi Llama. The declining TVL of Osmosis impacted the revenue generated by the protocol, which ended up decreasing.

Source: Defi Llama

Cosmos remains strong, but ATOM gets affected

Even though Osmosis wasn’t able to show growth in terms of revenue collection, the Cosmos Hub protocol’s revenue remained unaffected. According to data provided by Token Terminal, the revenue generated by Cosmos Hub increased by 51.03%.

Despite the struggles of its most prominent DEX, the activity on the Cosmos Hub increased massively. This could be why Cosmos witnessed growth in revenue collection.

Source: token terminal

Even though the Cosmos Hub protocol showed growth, the same could not be said for its native cryptocurrency, ATOM. Its price fell by 4.93% over the last month. Consequently, ATOM’s volume decreased as well, as it fell from 502.11 million to 119.91 million in the last month, according to Santiment.

Realistic or not, here’s ATOM’s market cap in BTC’s terms

Another concerning indicator for ATOM was the declining development activity, which suggested that no new upgrades and updates on the network were on their way to Cosmos Hub.

Source: Santiment

A decline in development activity would make it difficult for ATOM to see growth in the near future, despite its protocol seeing success in various areas.

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.