- Osmosis improved his protocol but his TVL went down.
- Despite the decline in TVL and sales from Osmosis, Cosmos Hub was unaffected
On March 2nd, Messari revealed Osmosis’ plans to integrate Bitcoin [BTC] into its network for added security. Osmosis is an important part of the cosmos [ATOM] ecosystem, and improvements in the osmosis protocol could potentially be reflected in the Cosmos Hub.
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[email protected] integrates #Bitcoin security! How?
+Checkpoints are sent to @babylon_chain via IBC
+A single checkpoint from Babylon is then sent to Bitcoin
+Bitcoin timestamps the received checkpoint, which can then be read by participating @Cosmos zones https://t.co/58djE304gA pic.twitter.com/4o3NWlAA7z
— Messari (@MessariCrypto) March 1, 2023
read cosmos [ATOM] Price prediction 2023-2024
increase in security
Osmosis security would work through network checkpoints. These checkpoints would be sent to Bitcoin via the Babylon chain, which would then be timestamped by the network. Eventually other Cosmos zones will read these timestamps.
Despite Osmosis’ attempts to improve its ecosystem through security, the network’s TVL continued to decline. Over the past week, the total value locked by the Osmosis protocol has dropped from $214.19 million to $190.6 million, according to DeFi Llama. Osmosis’ declining TVL impacted the revenue generated through the protocol, which ultimately declined.
Source: Defi Llama
Cosmos remains strong, but ATOM takes a hit
While Osmosis did not report growth in terms of revenue collection, the Cosmos Hub protocol revenue was unaffected. According to data from Token Terminal, Cosmos Hub revenue increased by 51.03%.
Despite the struggles of its most prominent DEX, activity on the Cosmos Hub increased massively. This could be why Cosmos saw 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. Its price fell 4.93% over the past month. As a result, ATOM’s volume also declined as it fell from 502.11 million to 119.91 million last month, according to Santiment.
Realistic or not, here is ATOM’s market cap in BTC terms
Another worrying indicator for ATOM was declining development activity, suggesting that there were no new upgrades and updates on the network en route to Cosmos Hub.
Source: Santiment
A drop in development activity would make it difficult for ATOM to see growth in the near future, although its protocol is showing success in several areas.
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