The Cosmos [ATOM] network is currently in the spotlight due to a proposed merger of two key decentralised exchanges (DEXes). This merger, if successful, could significantly boost ATOM’s market value.
Recently, Osmosis [OSMO] and UX Chain [UX], two prominent DEXes in the Cosmos ecosystem, announced potential plans to unite.
UX Chain, formerly known as Umea, is a cross-chain DeFi hub in the Cosmos network. Osmosis functions as an inter-blockchain communication protocol for Ethereum [ETH] and Polkadot [DOT], besides its role as a DEX on Cosmos.
The merger idea was initiated by Osmosis, recognising its own standing as a leading DEX in the Cosmos ecosystem. The choice of UX Chain was driven by its dominance in the lending sector.
A joint statement from the L1 network indicated that this partnership aims to elevate the Total Value Locked (TVL) of both protocols. An additional advantage cited was the enhancement of mesh security, a crucial aspect in the evolution of blockchain networks.
The official proposal stated,
“The UX chain will actively collaborate with the Osmosis chain to bolster mesh security. The combined expertise of both projects will contribute to creating a more secure and resilient network, ensuring the safety of user assets and the overall stability of the ecosystem.”
ATOM stands to gain significantly from this merger, especially considering the recent strong performances of UX Chain and Osmosis tokens.
At the time of reporting, OSMO’s price was at $0.74, showing a 70% increase over 30 days. UX has similarly experienced a significant rise in the same period.
Should the merger proceed, ATOM’s market capitalisation could see a substantial uptick. Another aspect potentially impacted by the merger is Cosmos’ Development Activity. AMBCrypto’s analysis using the Sentiment crypto tool indicated a current downturn in development activity to 2.08, suggesting recent major feature releases. The merger could reverse this trend, potentially boosting ATOM’s price.
As per the latest data, the 4-hour Relative Strength Index (RSI) for ATOM stood at 62.62, indicating strong buying momentum. This could suggest a further rise in ATOM’s value, possibly reaching the $10 mark.
The exact timeline for the merger remains unconfirmed, but indications suggest it’s nearing finalisation.