- New protocol on Osmosis drives adoption.
- However, Cosmos Hub’s condition continues to decline, impacting the state of ATOM.
After the launch of the Mars protocol on Osmosis, the adoption, and usage of the Mars protocol has increased. However, one of the reasons for the same was the rewards program that was playing an important role.
At press time, the TVL of the Mars protocol was $7.71 million which increased after launching on Osmosis. However, this growth could soon come to an end.
There was a fear in the market that the growth witnessed by the protocol could reverse its trajectory after the rewards program was over.
The rewards program for the Mars Protocol is eligible for depositors within 30 days. After this, depositors would no longer be able to access any of the rewards.
Read ATOM’s Price Prediction 2023-2024
This would de-incentivize new users from joining the platform. It would also stunt the growth of the Osmosis protocol and impact the overall Cosmos ecosystem.
Source: Defi Llama
Meanwhile, the number of stakers on the network decreased by 3.3%. At press time, the figure stood at 719,359.
Impact on ATOM
The Cosmos Hub’s token ATOM was also impacted. According to data provided by Santiment, the overall volume of the token fell from 746 million to 243 million in the span of a month.
Along with that the development activity also went down significantly. This implied that the number of contributions being made by Cosmos Hub’s team on its GitHub had fallen.
Source: Santiment
Another factor that could impact ATOM would be its increase in volatility. Due to the rising volatility of the token, many risk-averse investors will shy away from holding the token.
That said, it’s important to note that ATOM’s dominance declined by 4.39% over the last month. At press time, the market cap dominance of ATOM was 0.38%.
Source: Messari
However, despite these indicators, traders were increasingly optimistic about the future of ATOM.
According to Coinglass, the number of accounts holding long positions on ATOM increased substantially. 64.22% of all accounts were long on the coin, at the time of writing.
How much are 1,10,100 ATOMs worth today?
Source: coinglass
Overall, the protocol has a long way to go and many challenges to overcome.
