The OSMO +11.28% token gained over 11% in the past 24 hours, amid muted performance from most major cryptocurrencies.
The native token of the Osmosis DeFi hub network was changing hands for $1.32at 9:28 a.m. ET today, according to The Block’s Prices Page.
Over the past month, the token has posted a significant rally of over 100%. This coincides with a notable surge in trading volume and increased network activity, according to analysts.
Onchain data from the Osmosis Data Interface shows a spike to over $241 million in trading volume on its flagship DEX during the past week alone.
The OSMO price has rallied by over 11% in the past 24 hours.
Osmosis trading volume surges
Nansen analyst Jake Kennis noted that although the protocol had implemented significant updates throughout 2022 and early 2023, “the missing pieces were the volumes and users, but now that is starting to pick up.” Kennis added that trading volume on the largest dapp within the Osmosis protocol, the Osmosis decentralized exchange, has been steadily rising through November and December. “Volumes have been reaching new highs of $60 million per day,” he added.
Osmosis DEX trading volume has spiked in the past month.
Nansen analyst explained the impact of the increased trading volume on OSMO price dynamics. “As volumes increase, so does the inherent value capture of OSMO through its value capture mechanisms such as taker fees, proto rev module and transaction fees,” Kennis added.
He further added that Osmosis is the “de-facto DEX of all Cosmos assets and is a fully-fledged Layer 1 chain with many DeFi apps built on top of it.”
Kennis pointed to a recent uptick in the adoption of the Osmosis protocol by multiple DeFi apps. “Osmosis is being repriced as a fully fledge decentralized finance chain and not just a DEX,” Kennis said. He pointed to DApps such as Mars Protocol, Margined, Membrane Finance, Levana, Namada, and Milkyway that have either deployed on Osmosis or are planning to launch on the protocol.
This comes as Osmosis recently proposed a merger with lending project UX Chain — signaling a major consolidation in the Cosmos ecosystem. Upon approval, this merger may see the integration of the lending logic and algorithms of the UX Chain with Osmosis’ DEX and create a comprehensive DeFi hub.
Sourced from cryptonews.net.
