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In the Cosmos ecosystem, the native token of the Osmosis DeFi hub network, OSMO, has gained over 10% in value within the last 24 hours amid the ongoing calm market conditions in the cryptocurrency market, including Bitcoin. According to TradingView data, OSMO was trading at $1.37 at the time the article was written.
OSMO Impresses with Its Performance
OSMO, experienced an increase of over 100% in November, attracting the attention of many investors. According to analysts, this increase coincided with a significant rise in transaction volume and increased network activity. Onchain data obtained from the Osmosis Data Interface indicates that just last week, there was an increase of over $241 million in trading volume on the flagship DEX.
Nansen analyst Jake Kennis stated that despite the protocol having significant updates throughout 2022 and into early 2023, there was a lack of volume and users; however, during this period, these metrics began to recover. Kennis also added to his statements that the trading volume in the Osmosis protocol has been steadily rising during November and December:
“Volumes are reaching new peaks of around $60 million per day.”
The Nansen analyst also addressed the impact of the increasing trading volume on OSMO price dynamics, making the following statement:
“As volumes increase, OSMO’s natural value capture also grows through value capture mechanisms such as buyer fees, the proto rev module, and transaction fees.”
What’s Expected for Osmosis?
Kennis noted a recent increase in the adoption of the Osmosis protocol by numerous DeFi applications. According to Kennis, Osmosis is being repriced not just as a DEX but as an entirely decentralized finance chain.
These developments come shortly after Osmosis signaled a major consolidation in the Cosmos ecosystem with a merger proposal with the lending project UX Chain. If approved, this merger could integrate UX Chain’s lending logic and algorithms into Osmosis’s DEX and create a comprehensive DeFi hub.
