Osmosis and UX Chain Merger May Boost ATOM Token Value
ATOM in Focus: Cosmos Plans Merger of Two DEXes
The decentralized exchanges (DEXes) Osmosis and UX Chain are planning a merger that could potentially benefit the price of ATOM, the native token of the Cosmos network. The announcement was made on December 3rd and has since drawn attention to ATOM.
The Merger of Osmosis and UX Chain
Osmosis, known as an inter-blockchain communication protocol for Ethereum and Polkadot, also serves as a DEX on Cosmos. UX Chain, formerly known as Umea, was designed as a cross-chain DeFi hub in the Cosmos network.
The idea for the merger came from Osmosis, which sees itself as the dominant DEX in the Cosmos ecosystem. The choice fell on UX Chain due to its dominance in the credit sector. According to the published statement, the collaboration could drive the Total Value Locked (TVL) of both protocols to new heights and improve mesh security, which is considered an important part of chain development.
How ATOM Could Benefit from the Merger
The ATOM token is expected to benefit from the collaboration, as the tokens of UX Chain and Osmosis have recently performed well. At the time of the press release, the price of OSMO was at $0.74, representing a 30-day increase of 70%. UX also recorded a double-digit 30-day high. If the merger is successful, ATOM could rise higher than its current market capitalization.
Implications for Cosmos’ Development Activity
Another aspect that could be influenced by the merger is Cosmos’ development activity. At the time of writing, the development activity was at 2.08, suggesting that the Cosmos development team has recently delivered important features. Should Osmosis and UX Chain be added, this situation could change. A recovery in development activity could be bullish for the price of ATOM.
Outlook for ATOM
At the time of the press release, the 4-hour Relative Strength Index (RSI) was at 62.62, indicating good buying momentum. If the buying pressure for ATOM increases, ATOM could reach the $10 mark. It is not yet confirmed when the merger will take place, but it seems almost certain that it will.
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Please note that this is not investment advice. It is always important to do your own research before making decisions.
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