Osmosis Trading Surges: OSMO Price Doubles in a Month

Osmosis' token OSMO has doubled in value over the past month, alongside a significant increase in trading volume and network activity.

Trading on Osmosis "Surges" - OSMO Price Doubles in a Month

OSMO token has more than doubled in value over the past month, coinciding with a notable increase in trading volume and network activity.

Trading volume and liquidity fluctuation on the Osmosis network

According to on-chain data, trading volume on Osmosis' leading DEX has surged to over $241 million in the past week. This marks a remarkable turnaround following a chain halt incident in late November.

Jake Kennis, an analyst at Nansen, noted that despite the protocol implementing several crucial updates throughout 2022 and early 2023, user adoption has only recently surged. Kennis stated that trading volumes on Osmosis' largest dApp, the namesake DEX, have steadily increased since November, averaging $60 million in daily trades.

Thanks to this vibrant activity, Osmosis' OSMO token has also seen a significant acceleration, doubling compared to the previous month. However, in the past 24 hours, OSMO has experienced a decline of over 12%, amidst a strong market correction.

4-hour chart of OSMO/USDT pair on Binance at 11:40 AM on 18/12/2023

Jake Kennis likened Osmosis to a DEX for all assets on the Cosmos network and as an independent layer-1 with numerous DeFi applications.

Nansen's analyst emphasized that Osmosis is being "re-evaluated" as an official decentralized financial chain, moving beyond its previous identity solely as a DEX. He also highlighted DApps such as Mars Protocol, Margined, Membrane Finance, Levana, Namada, and Milkyway, which either rely on or are planning to deploy protocols on Osmosis.

Earlier this month, Osmosis proposed a merger with the lending project UX Chain, marking a significant step forward for the broader Cosmos ecosystem. If approved, integrating UX Chain's algorithm into Osmosis' DEX could create a comprehensive DeFi hub, offering users extensive opportunities and DeFi utilities.