that much Osmo
+15.70%
The token is up more than 11% in the last 24 hours amid poor performance for most major cryptocurrencies.
The native token of the Osmosis DeFi hub network was trading at $1.32. According to The Block’s pricing page, it’s 9:28 a.m. ET today.
Over the past month, the token has recorded a significant rise of over 100%. According to analysts, this coincides with a noticeable surge in trading volume and increased network activity.
On-chain data from Osmosis Data Interface shows that trading volume on the flagship DEX has surged to over $241 million in the past week alone.
OSMO price is up more than 11% in the last 24 hours.
Osmosis trading volume surges
Nansen analyst Jake Kennis noted that while the protocol has implemented significant updates throughout 2022 and early 2023, “what was missing was volume and users, but that is now starting to recover.” Kennis added that trading volume for the largest dapp within the Osmosis protocol, the Osmosis decentralized exchange, was steadily increasing through November and December. “Trading volume is hitting a new high of $60 million per day,” he added.
Osmosis DEX trading volume has surged over the past month.
Nansen analyst explained the impact of increased trading volume on OSMO price dynamics. “As trading volume increases, OSMO’s inherent value capture through value capture mechanisms such as taker fees, proto revision modules, and transaction fees also increases,” Kennis added.
He also added that Osmosis is “the de facto DEX for all Cosmos assets and a complete layer 1 chain with many DeFi apps built on top of it.”
Kennis pointed out that there has recently been a growing adoption of the Osmosis protocol by several DeFi apps. “Osmosis is being priced as a full-featured decentralized finance chain rather than just a DEX,” Kennis said. He pointed out DApps like Mars Protocol, Margined, Membrane Finance, Levana, Namada, and Milkyway that have deployed on Osmosis or are planning to launch their protocols.
This comes as Osmosis recently proposed a merger with lending project UX Chain. This marks a major integration into the Cosmos ecosystem. If approved, the merger could integrate the lending logic and algorithms of Osmosis’ DEX and UX chains and create a comprehensive DeFi hub.
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