Cosmos Ecosystem Thrives: ATOM Surges 87% from 2023 Low, TIA, INJ & OSMOS

The Cosmos ecosystem shows remarkable performance despite the overall market downward. Like many altcoins, it is on the rise.

Cosmos Hub (ATOM) is currently trading around $11,17, up 4.91% in the last 24 hours. The cryptocurrency hit $12,29 on December 12, up 87% from its 2023 low. In addition to ATOM, some cryptocurrencies rallying today are Internet Computer (ICP), Aptos (APT), and Hedera (HBAR), with increases ranging from 2.15% to 3.7%.

With prices rising, it looks like 2024 may be a strong year for tokens. Some tokens will clearly do better than others. What will drive prices in 2024, and which themes are going to be market drivers going forward?

ATOM Surges 87% from 2023 Low

Cosmos-based projects like Celestia (TIA), Injective (INJ), and Osmosis (OSMOS) have been performing strongly. This strong performance has been a driving force behind the overall ecosystem’s resilience

On-chain data indicates that OSMOS has surged by 380% from its 2023 low and currently stands at $1,02. Osmosis recently announced its upcoming merge with Umee, a cross-chain lending protocol within the Cosmos ecosystem. The partnership enables Osmosis to tap into Umee’s lending features and other valuable functionalities.

Additionally, the merge will combine the total value locked (TVL) of both platforms, bringing together Osmosis’ $142 million with Umee’s $17 million, further solidifying their position within the DeFi landscape.

Other pieces of the Cosmos ecosystem that recently gained traction and are expected to experience future growth include Celestia (TIA) and Injective (INJ). Celestia’s modular framework has gained significant momentum, with a16z anticipating modularity to take a center stage in 2024. Meanwhile, Injective reached a new record high of $28.6 per token yesterday.

Bitcoin ETF Update and FOMC Meeting

Bloomberg ETF analyst James Seyffart confirmed that BlackRock just had the third meeting with the U.S. Securities and Exchange Commission (SEC) on Tuesday to discuss the firm’s spot Bitcoin ETF proposal. Following the meeting, BlackRock updated its proposal, making significant changes to address regulatory concerns.

One key change is the creation of new fund shares based on fiat currency instead of just cryptocurrencies. This opens the door for regulated U.S. banks, who are currently prohibited from directly holding crypto, to participate in the Bitcoin market through the BlackRock ETF.

To achieve this, BlackRock will need to become an authorized participant (AP) in the market. This allows them to interact with the ETF as an AP, enabling banks to exchange their fiat shares for bitcoins through an intermediary. These bitcoins will then be securely stored with the ETF’s custodial provider.

Bloomberg ETF experts, James Seyffart and Eric Balchunas, remain steadfast in their prediction that the SEC will approve at least one spot Bitcoin ETF by January 10, 2024, giving it a 90% chance. However, despite this optimistic outlook and other positive developments, Bitcoin’s price has shown little to no significant reaction.

After last week’s rally, the crypto market entered a correction earlier this week, with prices dropping across cryptocurrencies. Following the sudden drop on Monday, Bitcoin (BTC) currently hovers around $41,195, down 1.37% in the last 24 hours.

Ethereum (ETH) is also down below $2,200 after breaking $2,400. Avalanche (AVAX) showed a strong performance earlier this week amid the market correction, but the cryptocurrency is now experiencing a 12% decline.

All market eyes are now on the final FOMC meeting. The Federal Reserve is scheduled to announce its decision on interest rates tomorrow, December 14, 2023.

The Federal Reserve has been raising interest rates to combat inflation. However, the agency paused this strategy in its last two consecutive meetings.

Despite November’s inflation data falling to 3.1%, it remains above the Fed’s target of 2%. This has analysts divided, with some expecting the Fed to slow the pace of future rate hikes, while others believe they will continue aggressively raising rates until inflation is under control.