The Cosmos Hub is reaping the benefits of the new Terra update — here’s how

  • Terra’s launch of the Mars protocol enhances the Cosmos Hub’s DeFi capabilities.
  • However, there was a decline in revenue and shareholders for Cosmos Network despite TVL’s growth.

In a message dated Jan. 20, Tira [LUNC] It has stated that it will launch its own lending protocol, known as the Mars Protocol, on the Cosmos Hub network. This movement can have a positive effect on the universe [ATOM] The presence of the network in the DeFi sector, as this will bring a new lending protocol to the network.

The Mars Protocol will launch its own standalone Cosmos application series on January 31, 2023, and will have its own native token, MARS.

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DeFi’s impact on the universe

According to DeFi Llama, the total value locked (TVL) on the Cosmos Hub has been steadily increasing, from $376,543 to $720.2303. The new Mars Hub development can add to this growth and significantly boost Cosmos Hub’s presence in the DeFi space, attracting more users and increasing the total value locked on the network.

Source: Devi Lama

But despite the increase in TVL, revenue from Cosmos has been steadily declining. Based on data from the Token Terminal, Cosmos Hub’s revenue is seen to have decreased by 11.6% in the last 30 days.

This decline in revenue may be a concern for the Cosmos network, as there may be a lack of interest in it, which may affect its overall sustainability.

In addition to the revenue decline, players have also lost faith in the Cosmos network, with player numbers down 78.82% according to Staking Rewards.

Source: Staking Rewards

All of these factors also affected the ATOM token. According to Santiment data, ATOM volume decreased from 611 million to 225 million in the last month. This decrease in volume may indicate a lack of interest in the token, which affects its overall value.

Source: feeling

On the lighter side

However, ATOM development activity increased during this period. The number of developer contributions on Atom’s GitHub has increased. This could mean that new upgrades and updates could be made to the Atom network in the near future, which could renew interest in ATOM.

Additionally, according to Coinglass, the majority of large traders are bullish on the future of ATOM, with 51.2% of traders deciding to go long on the token at press time.

Read Cosmos [ATOM] Price forecast 2023-2024

Source: Coinglass

At the time of writing, the ATOM price is at $13.37, having gained 2.38% in the last 24 hours. While the launch of the Mars Protocol may bring new opportunities to the Kosmos Network, it remains to be seen if it will be enough to overcome the decline in revenue and interest and revive interest in the ATOM token.

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