Some cryptocurrencies are still showing a drop in total value locked and native token prices at the start of 2022. Osmosis, on the other hand, has a different story to tell. Trackers disclosed on Monday that the overall locked value of this Cosmos network’s first decentralized exchange has increased (TVL).
The start of 2022 appears to brighten the dazzling light for Osmosis to flourish. The network has recently gained a lot of attention in blockchains. Ethereum is an outlier, with its high transaction prices and slow transaction rates.
According to Token Terminal, an analytics tool, Osmosis’s average daily trading volume is increasing. The platform earned approximately $46.6 million in December, compared to $4.1 million in July.
Furthermore, according to CoinGecko data, the Osmosis native token (OSMO) increased by 13% in the last 24 hours to $7.78. This raises the token to a new all-time high (ATH), exceeding its previous ATH of $6.80 set in November.
Furthermore, while holding OSMO, a user obtains incentives and yields by staking his tokens. He also has a participatory mandate in the protocol’s governance and contributes to its expansion initiatives.
Osmosis uses smart contract technology to execute user transactions. It does not necessitate the involvement of a middleman. Its value proposition is determined by its plans. Part of the protocol extends to other blockchains, such as Ethereum, and those that support the Inter-Blockchain Communication (IBC) protocol.
The interchange and sharing of data between blockchains are feasible using IBC. The IBC protocol was created to make it easier to connect blockchains using Tendermint. Furthermore, this software assists developers in replicating identical copies of apps on networks developed on its platform.
The efforts of Osmosis aided the flag-off in the IBC operations. For example, a tweet from the IBC developers in July 2021 indicated that Osmosis completed over 19,500 transactions each day following its launch.
This figure represents a huge rise above the previous 236 transactions prior to the establishment of IBC. In addition, Osmosis generated $21 million from a token sale in October 2021 under the auspices of Paradigm Capital.
Cosmos is the first and most notable Tendermint network designed to function as a blockchain internet. The creators intend to create an ecosystem in which applications run on various blockchains. However, the applications must continue to communicate freely with one another.
Cryptocurrencies and blockchains would fast become widespread with this functionality. This is due to the fact that users can conveniently access several blockchains from a single platform.
There is no need to go through them all manually by logging into one application after another. Cosmos is the 18th-largest blockchain network by market capitalization.