The native token of the Osmosis DeFi hub, OSMO, has gained more than 10% in value over the past 24 hours in the cryptocurrency market, including Bitcoin, amid ongoing calm market conditions. According to TradingView data, at the time the article was written, OSMO was trading at $1.37.
OSMO, which saw an increase of more than 100% in November, attracted the attention of many investors. Analysts suggested that this rise coincided with a significant increase in trading volume and network activity. According to on-chain data obtained from the Osmosis Data Interface, there was an increase of over $241 million in trading volume on the flagship DEX last week.
Nansen analyst Jake Kennis noted that despite the protocol receiving significant updates throughout 2022 and into early 2023, there was a lack of volume and users. However, during this period, these metrics began to recover. Kennis added that the trading volume in the Osmosis protocol consistently increased in November and December.
Kennis also addressed the impact of the increasing trading volume on OSMO price dynamics, stating that the trading volume reached new peaks of nearly $60 million daily.
Kennis mentioned that there has been a recent increase in the adoption of the Osmosis protocol by many DeFi applications, noting that Osmosis is being repriced not just as a DEX but as a fully decentralized finance chain. These developments came shortly after Osmosis hinted at a major consolidation with a merger proposal with UX Chain in the Cosmos ecosystem. If approved, this merger could integrate UX Chain’s lending logic and algorithms into Osmosis’s DEX, creating a comprehensive DeFi hub.