Bullish Signals Push DeFi Token ATOM Up 90% in the Past Month

January 14, 2022, 9:30 AM AEST - 3 days ago

The Cosmos blockchain (ATOM), one of the OGs in the space, has seen exceptional growth in the past month through the sea of red washing over the market, thanks to its cross-chain approach and new decentralised exchange (DEX).

A Cross-Chain Future for Cosmos

Cosmos is a community-owned and operated blockchain, and one could say it functions as a layer 0 on which other blockchains can be built and liquidity shared between chains. Cosmos can connect and exchange data and assets with other sovereign blockchains; this is made possible by using the Inter-Blockchain Communication protocol (IBC).

This technology is now being used to connect various blockchains and is considered “the safest and most secure and decentralised way to move assets across different blockchains, unlocking interoperability across multiple chains”.

ATOM Price Spike

During the past month, the ATOM token has soared close to 90 percent from just over US$21 on December 14 to around $40.83 at the time of writing. With an estimated US$162 billion in digital assets under management and 262+ dApps and services, the chain is poised for further growth.

As more chains are bridged, the total trading volume will increase. Since the release of cross-chain bridges that connect the Cosmos (ATOM) ecosystem with other Ethereum (ETH) Virtual Machine (EVM) compatible networks, the trading volume has expanded considerably.

OSMO price and DEX trading volume. Source: Token Terminal

Ups and Downs for Osmosis

Osmosis (OSMO) is one of the first DEXs to service chains connected through the IBC, and has already begun benefiting from its position. One week ago it was in the top 3 DEXs, however, at the time of writing, the exchange had gone down to rank 12th.

OSMO’s massive increase in trading volume has also been one of the factors causing the price to surge 81 percent from a low of US$4.05 on December 17 to a new all-time high of US$9.57 on January 12.

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