Altcoins
Osmosis Crypto Price Pumps and then Dumps: Here’s Why
Osmosis crypto price went vertical during the weekend as investors cheered the positive developments in its ecosystem. OSMO, the network’s token, soared to an all-time high of $5.15, which was much higher than this week’s low of $0.9088. It has become one of the best-performing coins in the industry.
Why did OSMO soar?
Osmosis is a leading decentralized exchange built on the Cosmos ecosystem. For starters, Cosmos is a smart contract platform that pioneered the concept of Interchain Communication. This means that DEXes built on its ecosystem can easily communicate with other chains like Ethereum, Solana, and Avalanche. IBC was recently upgraded to IBC v3.4.0.
Osmosis has numerous features. Like with Uniswap and PancakeSwap, the network allows users to swap tokens across multiple chains. It has significantly low slippage and transaction costs. Transactions in its ecosystem are significantly cheap.
Other features in Osmosis are staking and pools, where people can deposit funds and earn returns. According to DeFi Llama, Osmosis has a total value locked (TVL) of more than $176 million. At its peak, its TVL was over $1.34 billion.
Osmosis crypto price jumped after the developers unveiled a new stableswap. A stableswap is a protocol where users can trade stablecoins and earn returns. It will support stablecoins like USD Coin, Tether, and Binance USD.
Stableswap will leverage a new technology known as curve algorithm, which concentrates tokens in asset pools. As a result, traders will be able to exchange large amounts of stablecoins with minimal price fluctuations.
Osmosis price jumped after the introduction of ICNS, a nameservice within the Cosmos ecosystem. With ICNS, users will be able to own a single name that represents their identity across the Cosmos ecosystem. It is similar to Ethereum Name Service. All name resolutions in ICNS will take place in the Osmosis ecosystem.
Osmosis crypto price forecast
The chart below shows that the OSMO price went parabolic and then pulled back sharply as the initial momentum waned. After soaring to over $5, the token has crashed to less than $2. This spike signals that the coin could have experienced a pump and dump following the positive news in the ecosystem.
Osmosis price remains slightly above the 25-day moving average, which does not matter a lot at the moment. Therefore, since Osmosis is thinly traded, I suspect that it will experience another round of pump before getting dumped again.
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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