Journalist
Posted:
- Cosmos’ network activity has decreased over the past week.
- ATOM’s open interest has declined over the same period.
Proof-of-Stake (PoS) sovereign blockchain Cosmos Hub [ATOM] has witnessed a decline in network activity since November 18, data shows Artemis showed.
AMBCrypto found that as of November 23, the number of unique wallet addresses that completed at least one transaction on the chain was 17,000. This represented a 60% decline from the 43,000 daily active addresses recorded on November 18.
Due to low user activity on the network, the number of daily completed transactions on the network has also decreased. As of November 23, Cosmos’ daily transaction count was 52,140, marking a 39% drop in on-chain transactions over the past week.
Despite decreased demand for the chain, Cosmos’ decentralized finance (DeFi) ecosystem continues to see a sharp increase in total value locked (TVL). At the time of writing, the network’s TVL was $1.96 million, up 73% since early November.
At this value, Cosmos’ TVL is currently at an all-time high.
Source: DefiLlama
State of ATOM
In the ATOM futures market, open interest started falling on November 19 and remained in a downward trend at the time of writing. At the time of writing, ATOM’s open interest is $106.31 million and is down 10% over the past seven days.
When an asset’s open interest decreases in this way, it means traders are closing their positions as they become less and less confident in the asset’s future direction.
The drop in open interest at ATOM coincides with the price consolidation of the past week. Interestingly, market participants opened more long positions than short positions during that period.
However, as prices remained within a narrow range, long traders were forced to liquidate their positions.
When an asset’s long liquidations exceed its short liquidations, it can be interpreted as a sign of strong selling pressure and a possible reversal in the market trend.
How many Worth 1,10,100 ATOMs today?
This is because more and more traders are being forced to sell their long positions, indicating a loss of confidence in the assets’ ability to continue rising.
Source: Coinglass
In the token spot market, accumulation continues among daily traders. ATOM’s key momentum indicators, observed on a 24-hour chart, showed that the market continued to favor accumulation despite sideways price movements.
Source: ATOM/USDT on TradingView
