Trading volume surges
One of the biggest factors helping drive the price of OSMO has been the meaning addition in trade volume on the exchange. According to data from Token Terminal, trade volume hit a read gamey of $ 186.8 million on Jan. 7 and a new all-time high was set on the same day.
OSMO price vs. DEX trading volume. Source Token Terminal The spike in trade book and token price concisely resulted in Osmosis becoming the third graded DEX by market capitalization as highlighted in the succeed pinch from Twitter user Jimmy Yang .
other factors that have helped bolster the price of OSMO as deal bulk increased include the fact that more than 81 million OSMO are presently staked on the network, according to data from SmartStake. Furthermore, a big dowry of the supply is besides being used to provide fluidity in the diverse fluidity pools offered on Osmosis .
Total value locked on the rise
A second development laying out the bullish case for OSMO has been the steadily increase in total measure locked on the protocol, which hit a record $ 1.21 billion on Jan. 11, according to data from Defi Llama .Total value locked on Osmosis. Source: Defi Llama The climbing TVL comes american samoa multiple tokens in the Cosmos ecosystem hit new highs. notably, ATOM, which is the most recognizable asset from Cosmos, hit a casual high of $ 43.64 on Jan. 7, which is barely a dollar below its all-time high. Osmosis ‘ second native token, ION, besides hit a modern high at $ 16,500 on Jan. 11.
Related: 3 reasons why Cosmos (ATOM) price is near a new all-time high
Cross-chain ease the burden for traders
A third reason for the bullish turn in OSMO is the increase attention Cosmos has directed toward EVM compatibility and cross-chain bridges. Evmos is a current project in development that is working on becoming the beginning IBC-compatible EVM-based chain and it is presently supporting ERC-20 tokens on its testnet .
Injective, a L1 protocol, has besides revealed that is developing cross-chain bridges for Cosmos-based projects and it is presently working on corroborate for OSMO.
Sneak peek at the latest Injective Bridge IBC consolidation @ osmosiszone ⚛️ @ InjectiveLabs
The @ universe IBC ecosystem is growing stronger everyday ! pic.twitter.com/rVoRdQxjh0— Injective (@InjectiveLabs) January 4, 2022
As cross-chain bridges come on-line and allow tokens from other EVM-compatible networks to bridge into the Cosmos Hub, Osmosis has the potential to see further increases in trade bulk and TVL merely because it is the chief DEX for the Cosmos ecosystem at this time. If this were to occur, there ‘s besides the possibility that OSMO price could appreciate further. The views and opinions expressed here are entirely those of the generator and do not inevitably reflect the views of Cointelegraph.com. Every investment and trade go involves risk, you should conduct your own research when making a decision .