All eyes on ATOM as Cosmos prepares to merge two DEXes
- The Osmosis and UX Chain DEXes are planning to merge.
- ATOM may benefit from it.
Because of a proposal to merge two decentralized exchanges on the Comsos [ATOM] network, the focus on the blockchain’s native token could increase.
On the 3rd of December, Osmosis [OSMO] and the UX Chain [UX] revealed that they could come together as one.
UX Chain was known as Umea before it rebranded. The project was designed to be a cross-chain DeFi hub on the Cosmos network.
Osmosis, on the other hand, acts as an inter-blockchain communication protocol for Ethereum [ETH] and Polkadot [DOT]. It also acts as a DEX on Cosmos.
For security and more
Osmosis was the party that brought up the idea of the merger. It based the proposal on the notion that it was the dominant DEX in the Comsos ecosystem.
It also told its community that its choice of UX Chain was because of its dominance in the lending sector.
According to the statement put out, the L1 network said that the collaboration would also propel the Total Value Locked (TVL) of both protocols to new heights.
Another benefit it mentioned was mesh security, which is considered an important part of chain evolution.
The proposal read:
“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.”
OSMO and UX to aid ATOM price?
The ATOM token could gain immensely from the collaboration. This is because the tokens of UX Chain and Osmosis have had good performance in recent times. At press time, OSMO’s price was $0.74, representing a 30-day 70% hike.
UX, like OSMO, also had a double-digit 30-day high. Thus, if the merger goes through, ATOM could move higher than its current market cap position.
Another metric that could be affected by the merger is Cosmos’ Development Activity. AMBCrypto evaluated the crypto analysis tool Sentiment to track the project’s Development Activity.
At the time of writing, the Development Activity was down to 2.08.
This drawdown implies that the Cosmos development team has shipped out major features lately. Should Osmosis and UX Chain come in, this condition might change.
If the development activity recovers, it could be bullish for ATOM’s price.
Read Cosmos’ [ATOM] Price Prediction 2023-2024
At press time, the 4-hour Relative Strength Index (RSI) was 62.62. This reading suggested good buying momentum. If buying pressure increases for ATOM, the ATOM may hit $10.
As it stands, it is not yet confirmed when the merge will take place. But at the same time, it looks like something that is almost sealed.