- DEX on Cosmos Hub aided in incorporating IBC technology on Polkadot.
- Activity on the protocol declined while ATOM’s price fell.
Cosmos Hub’s IBC (Inter-Blockchain Communication Protocol) technology has been used by Composable Finance to launch a Polkadot [DOT] – Kusama connection. It is noteworthy that this is the first implementation of the IBC protocol outside the Cosmos network.
#Polkadot is coming to the #Interchain@ComposableFin successfully launched the first Polkadot<>Kusama connection via #IBC
This is the first IBC implementation outside of #Cosmos ⚛️
Meet IBC: The Standard of Blockchain Interoperability! pic.twitter.com/6R5JGNjH4v
— Cosmos – Internet of Blockchains ⚛️ (@cosmos) April 28, 2023
Read Cosmos’ [ATOM] Price Prediction 2023-2024
The Polkadot connection
This connection is expected to improve interoperability between the two blockchain networks. The integration of these two networks is likely to establish a new benchmark for relay chain interoperability in DotSama.
The integration of Cosmos Hub’s technology on the Polkadot network could improve the markets’ sentiment towards the Cosmos Hub network, which was negative during press time.
Source: Santiment
The popularity of dApps on the Cosmos network could also help increase the interest generated on Cosmos. Osmosis, a DEX built on the Osmosis network, witnessed massive improvements as its new technologies gained traction.
ProtoRev for @osmosiszone went live in the middle of March and has accrued ~$50k to date. pic.twitter.com/0hSlSfrbKI
— Delphi Digital (@Delphi_Digital) April 28, 2023
However, despite the increasing interest dApps on the Cosmos Hub witnessed, the overall activity on the network continued to decline. According to Artemis’ data, the number of active addresses on the Cosmos network fell from 29,000 to 19,680 in the last few days. Subsequently, the number of transactions on the network also fell.
The decline in the number of transactions being made on the network impacted the Cosmos Hub network in terms of revenue as well. Token terminal’s data indicated that the overall revenue generated by Cosmos Hub fell by 13.1% in the last week.
However, the Cosmos Hub could soon regain interest from buyers as new developments on the protocol increasingly get made. Over the last month, the number of code commits being made to Cosmos Hub’s GitHub has increased tremendously.
Source: Token Terminal
Taking a look at ATOM
Regarding the native token of Cosmos Hub, ATOM, its prices have experienced significant fluctuations in the past week. Specifically, since 17 April, the price of ATOM has declined by 9.66%. As of now, ATOM is being traded at $11.63. The expanding width of the Bollinger Bands is an indicator of potential volatility for ATOM in the future.
Realistic or not, here’s ATOM’s market cap in BTC’s terms
Moreover, the upper Bollinger Band, which currently stands at $12.01, may act as a resistance to ATOM’s price movement.
Additionally, the increasing Relative Strength Index (RSI) of ATOM suggests that despite a strong momentum, ATOM may be in an overbought position at the current time.
Source: Trading View
