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- While most cryptocurrencies are facing a dip in their total value locked, Cosmos’s first decentralized exchange on the contrary has experienced a spike in its TVL.
- According to the coinmarketcap, the native token of Osmosis reached $10.46, its all-time high exceeding its November ATH of $6.80.
- Osmosis is a peer-to-peer blockchain and uses smart contract technology to perform users’ transactions without the interference of middlemen. Its value proportion depends on its plans.
In this quite early phase of 2022, some cryptocurrencies are still experiencing a drop in their total value locked and native token prices. However, Osmosis, a decentralized peer-to-peer blockchain is on the other side of the story.
Trackers disclosed on Monday that Cosmos’s first decentralized exchange records a rise in its TVL or total locked value.
Osmosis Reached Its All-Time High
The start of 2022 can further help the already booming Osmosis. The network has also expanded exponentially to attract more attention in blockchains. It however excludes Ethereum due to its expensive costs and slow transaction rates.
Osmosis grows its average trading volume according to Token Terminal, an analytical tool. In December, the platform recorded about $46.6 million in comparison to its July value of $4.1.
Osmosis is up 1.56% in the last 24 hours. As per the coinmarketcap’s data, the Osmosis native rose to $10.46. This is token’s all-time new high outperforming its November ATH of $6.80.
In addition, when a user holds OSMO, he gains rewards and yields through the staking of his tokens. Furthermore, the user can also participate in the governance of protocol and get a chance to contribute to its expansion measures.
How Does Osmosis Work?
Osmosis leverages smart contract technology for performing the users’ transactions. There is also no interference of middlemen whatsoever. Depending on its plans, its value proportion varies. A protocol’s part also expands to other blockchains such as Ethereum and others that are adaptable to the Inter-blockchain Communication (IBC) protocol.
The exchange and sharing of data among several blockchains are also possible using IBC. The purpose of establishing the IBC protocol is to ease the connection of blockchains through Tendermint. The software also backs developers in generating similar copies of applications on networks developed on its platform.
The flag-off in the operations of IBC got assistance from the activities of Osmosis. For instance, in July 2021 as an IBC developer’s tweet reads that Osmosis generates over 19,500 transactions daily after its release.
Source: Tradingview
The value indicates a notable surge in comparison to the earlier 236 transactions that were processed before the launch of IBC. Through a token sale in October 2021, Osmosis made around $21 million.
To be customized as the internet of blockchains, Cosmos is the first and prominent Tendermint network. The developers aim to set up an ecosystem where applications will be present on separate blockchains. However, the applications still have to maintain unrestricted communication between each other.
Cryptocurrencies and Blockchains can turn into the mainstream faster with this operability. The reason behind it is that the users can leverage multiple blockchains using a single platform.
To move through them all by logging into applications one by one is also not required. According to coinmarketcap, Cosmos is the 24th-largest blockchain network.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
