Cosmos-based DEX Osmosis hit $1.121 billion in monthly volume in December 2023, based on DefiLlama facts.
The DEX’s native token OSMO has risen sharply due to increased activity and is currently trading at $1.51, up 121.97% in the last 30 days, based on CryptoSlate data.
It is the first time trading volume on the DEX has exceeded $1 billion since May 2022, before the collapse of Terra Luna, which wiped out billions of dollars of liquidity from the Cosmos ecosystem.
Revival
Osmosis operates as both a DEX and an automated market maker (AMM) within the Cosmos network. It stands out by allowing users to create and manage their own liquidity pools with customizable parameters.
It runs on non-custodial infrastructure and is part of the larger Cosmos SDK universe, supporting more than 47 chains within this ecosystem. The platform is known for its interoperability, facilitated by the Inter-Blockchain Communication (IBC) protocol, and provides an advanced infrastructure for creating native interchain applications and smart contracts.
With the resurgence of bull activity in the crypto markets, many blockchain ecosystems are seeing renewed interest amid the launch of new projects. Cosmos is one of the leading blockchains in terms of investor interest due to its unique technology.
Osmosis has similarly seen a resurgence in activity amid increased interest in Cosmos and its surrounding ecosystem due to new token launches such as Celestia (TIA) and numerous airdrops on the horizon.
Airdrop frenzy
Airdrop farming in the Cosmos ecosystem has been a major driver of activity in recent weeks, attracting users and contributing to the growth of the network.
At its core, airdrop farming involves users staking specific tokens to earn rewards, with the potential to receive additional tokens in the future. This practice has become increasingly common and numerous protocols have launched their tokens via airdrops both in the past and in recent months.
This activity is made possible by the interoperability of the Cosmos platform, which enables various participation and reward mechanisms. Wallets that stake DEX’s native token OSMO are automatically eligible for many of the Cosmos airdrops.
Airdrops have become one of the primary ways Web 3 protocols attract new users and activity by promising future rewards.
