ATOM, ONE and DeFi 2.0 Tokens Challenge the Market Bearish

Cosmos (ATOM), Harmony (ONE), and several DeFi 2.0 projects have posted double-digit gains over the past 24 hours despite a broader market slump.

ATOM and ONE increase in price

ATOM and ONE are nearing all-time highs.

The ATOM price has risen over the past month despite the weakness of the top coins. The token of blockchain layer 0 Cosmos gained 45% over a 7-day period as Bitcoin dropped 10.4%. Today, ATOM is up nearly 20% and is near all-time highs of $44.42 in September.

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ATOM 4-hour chart | The source: Tradingview

An increased focus on interoperability will likely spur interest in Cosmos. Some layer 1 blockchains like Terra and Binance Smart Chain are built using Cosmos’ software developer toolkit, making it easy to build bridges between them. Cosmos is also pioneering the Inter-Blockchain Communication Protocol (IBC), an interoperability standard that allows independent blockchains to exchange and transfer data and assets.

The token price of Osmosis Hub, the first decentralized exchange for IBC-connected coins built on top of the Cosmos SDK, recently surpassed previous all-time highs, up 19% in the past 24 hours. The OSMO token is currently trading at $9.23 and price discovery is starting.

Harmony, a layer 1 chain compatible with Ethereum, is also growing amid market volatility. The network’s token ONE is up 15% on the day, breaking the psychological barrier of $0.30. ONE is currently trading at $0.316, just $0.06 below its all-time high.

DeFi Kingdoms, a gamified DeFi play-to-earn application built on top of Harmony, has skyrocketed in recent weeks, drawing more attention to this layer 1. The protocol’s JEWEL token is up over 175% since early December as users flocked to Harmony to play DeFi Kingdoms (gamers need JEWEL to access the game).

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JEWEL/USD chart | The source: CoinGecko

DeFi 2.0 shows power

Elsewhere, nascent decentralized finance protocols are also growing rapidly.

Frax Share (FXS) and Dopex Rebate Token (RDPX) are up double digits on the day, while Redacted Cartel’s BTRFLY token (OlympusDAO fork) is up 25% to over $3,400.

All of these projects play a central role in the “Curve war” – DeFi protocols competing to lock up voting-winning CRV tokens on the Curve Finance stablecoin exchange. Locking more tokens gives protocols more power to vote on which Curve pool gets the most yield, meaning they can vote for their preferred pool for more rewards. In return, the pool provides a higher yield to the users, creating a flywheel effect to acquire and lock in even more CRV tokens.

Other notable projects in the Curve Wars include Convex Finance and Yearn.Finance. While these protocols have not shown as much resilience as Frax or Dopex tokens over the past 24 hours, they have outperformed many other assets and appear to be maintaining an uptrend.

Much of the value of the tokens above comes from stablecoin profits. This may explain why the recent drop in the market has had little effect on their prices. The increased demand for voting rights on Curve also affects the CRV token price. CRV has increased 24% over the past month and hit a new local high of $6.71 on Jan. 4. Due to the recent volatile market situation, it has cooled down and is currently trading at $5.13.

CRVUSDT 2022 01 08 00 42 35

4-hour CRV chart | Source: Tradingview

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Minh Anh

Theo Cryptobriefing

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