• Terra’s Mars Protocol launch boosts Cosmos Hub’s DeFi potential.
• Despite increasing TVL, revenue generated by Cosmos has decreased and stakers have lost faith in the network.
• This has also impacted the ATOM token, with its volume declining by 63%.
Terra recently announced the launch of its lending protocol, Mars Protocol, on the Cosmos Hub’s network. This could have a positive effect on the Cosmos Hub’s presence in the DeFi sector, as it would bring in a new protocol to the ecosystem. The Mars Protocol is set to launch its independent Cosmos appchain on 31 January 2023, and it will have its own native token, MARS.
Total Value Locked (TVL) on the Cosmos Hub had increased steadily, from $376,543 to $720,2303. This new development could add to this growth and significantly improve Cosmos Hub’s presence in the DeFi space, attracting more users and increasing the overall value locked on the network.
However, despite the increasing TVL, the revenue generated by Cosmos has declined steadily. Based on data from Token Terminal, it was observed that the revenue generated by the Cosmos Hub declined by 11.6% in the last 30 days. This decline in revenue could be a cause of concern for the Cosmos network, as there may be a lack of interest in it, which could affect its overall sustainability. In addition to the decline in revenue, stakers also lost faith in the Cosmos network, as the number of stakers decreased by 78.82%, as per Staking Rewards.
The declining revenue and staker interest in the Cosmos network has also impacted the ATOM token. According to data from Santiment, the volume of ATOM fell from 611 million to 225 million in the last month. This decline in volume could indicate a lack of interest in the token, which could have a negative effect on its price.
Overall, the launch of Mars Protocol on the Cosmos Hub’s network could have a positive effect on the DeFi sector, as it could add to the TVL on the network. However, the decline in revenue and staker interest in the Cosmos network could be a cause of concern, as it could affect the network’s overall sustainability. The decline in ATOM’s volume could also be a concern, as it could have a negative effect on its price. Therefore, it is important for the Cosmos network to find ways to increase its revenue and staker interest in order to ensure its long-term sustainability.