Will ATOM be affected by Osmosis’ move to Bitcoin? Considering…
- Osmosis made improvements to the protocol, but TVL rejected.
- Despite Osmosis’ decline in TVL and revenue, Cosmos Hub remained unaffected
On March 2, Messari revealed Osmosis’ plans to integrate Bitcoin [BTC] into the network for added security. Osmosis is a big part of the cosmos [ATOM] ecosystem, and improvements in the Osmose protocol could potentially be reflected in the Cosmos Hub.
.@osmosiszone be integrated #Bitcoin Safety! How?
+Checkpoints sent to @babylon_chain via IBC
+Single checkpoint from Babylon is then sent to Bitcoin
+Bitcoin time stamps the received checkpoint, which can then be read by participating @Cosmos zones pic.twitter.com/4o3NWlAA7z— Messari (@MessariCrypto) 1 March 2023
Read Cosmos’ [ATOM] Price prediction 2023-2024
Increasing security
Osmosis’ security would be to work through checkpoints on the network. These checkpoints will be sent to Bitcoin through the Babylon chain, which will then be time-stamped by the network. Eventually, other Cosmos zones will read these timestamps.
Despite Osmosis’ efforts to improve its ecosystem through security, TVL to the network continued to decline. Over the past week, the total value locked by the Osmosis protocol fell from $214.19 million to $190.6 million, according to DeFi Llama. The decreasing TVL of Osmosis affected the revenue generated by the protocol, which ended up decreasing.
Source: Defi Llama
The Cosmos remains strong, but the ATOM is affected
Although Osmosis was unable 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, activity on the Cosmos Hub increased massively. This may be why Cosmos experienced growth in revenue collection.
Source: token terminal
Although the Cosmos Hub protocol showed growth, the same could not be said for its native cryptocurrency, ATOM. The price fell by 4.93% in the last month. Accordingly, ATOM’s volume also fell, falling from 502.11 million to 119.91 million in the past month, according to Santiment.
Realistic or not, here is ATOM’s market cap in BTC terms
Another worrying indicator for ATOM was the slowing development activity, which suggested that no new upgrades and updates on the network were on their way to the Cosmos Hub.
Source: Sentiment
A slowdown in development activity will make it difficult for ATOM to see growth in the near future, despite the protocol seeing success in various areas.
