ATOM, ONE and DeFi 2.0 tokens are challenging the bearish market
Cosmos (ATOM), Harmony (ONE) and several DeFi 2.0 projects have seen double-digit growth in the past 24 hours despite a broader market slump.
ATOM and ONE price increase
The ATOM price rose last month despite the weakness of the top coins. Blockchain Layer 0 Cosmos’ token gained 45% over a 7 day period while Bitcoin fell 10.4%. Today ATOM is up nearly 20%, near its all-time high of $ 44.42 in September.
ATOM 4-hour chart | The source: Trade view
An increased focus on interoperability is likely to generate interest in Cosmos. Some Layer 1 blockchains like Terra and Binance Smart Chain are created using the Cosmos Software Developer Toolkit, so it’s easy to build bridges between them. Cosmos is also pioneering the Inter-Blockchain Communication Protocol (IBC), an interoperability standard that enables independent blockchains to share and transfer data and assets.
Osmosis Hub, the first decentralized exchange for IBC-linked coins built on top of the Cosmos SDK, recently hit all-time highs and is up 19% in the past 24 hours. The OSMO token is currently trading at $ 9.23 and pricing is beginning.
Harmony, a Layer 1 chain compatible with Ethereum, is also growing amid market volatility. The network’s token ONE is up 15% over the day, breaking the $ 0.30 psychological barrier. ONE is currently trading at $ 0.316, just $ 0.06 from its all-time high.
DeFi Kingdoms, a gamified DeFi play-to-earn application based on Harmony, has skyrocketed in the last few weeks and has drawn more attention to this Tier 1. Protocol’s JEWEL token has increased over 175% since early December as users flocked to Harmony to play DeFi Kingdoms (players will need JEWEL to access the game).
JEWEL / USD chart | The source: Coin Gecko
DeFi 2.0 shows power
The nascent decentralized financial protocols are growing rapidly elsewhere as well.
Frax Share (FXS) and Dopex Rebate Token (RDPX) rose double digits that day, while Redacted Cartel’s BTRFLY token (OlympusDAO Fork) rose 25% to over $ 3,400.
All of these projects play a central role in the “Curve War” – DeFi protocols compete to block CRV tokens won by votes on Curve Finance’s stablecoin exchange. Locking more tokens gives protocols more power to make decisions about which curve pool has the highest return, which means they can vote for their preferred pool for more rewards. In return, the pool offers users a higher yield and creates a flywheel effect to acquire and lock in even more CRV tokens.
Other notable projects in the Curve Wars are Convex Finance and Yearn.Finance. While these logs haven’t shown as much resilience over the past 24 hours as Frax or Dopex tokens, they have outperformed many other assets and appear to be maintaining an upward trend.
Much of the value of these tokens comes from stablecoin earnings. This could explain why the recent drop in the market had little impact on their prices. The increased demand for voting rights on Curve is also affecting the CRV token price. The CRV is up 24% last month, hitting a new local high of $ 6.71 on Jan 4th. Due to the recent volatile market environment, it has cooled and is currently trading at $ 5.13.
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