Cosmos Hub (ATOM) Launches New Cross-Chain Protocol Dubbed Valence

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As a researcher with a background in blockchain technology and a keen interest in decentralized finance (DeFi), I am excited about the recent announcement of Cosmos Hub’s new cross-chain protocol, Valence. The potential for increased interoperability and economic relationships between various crypto-native entities is a significant development in the Web3 ecosystem.

The major decentralized hub in the cosmos, Cosmos with a total valuation of approximately $2.56 billion, has unveiled a fresh cross-chain protocol named Valence. As per the Cosmos team’s statement, this new protocol is designed to strengthen connections and collaboration within the interconnected blockchain network.

As a researcher exploring the intricacies of blockchain technology, I’d describe it this way: The Valence protocol, a creation of the Timewave team, collaborates with the Inter-Blockchain Communication (IBC) initiative to strengthen economic interactions in web3. Additionally, this protocol contributes significantly to the IBC ecosystem by fostering a programmatic economic relationship among native crypto organizations.

Valence facilitates various economic interactions, encompassing straightforward token exchanges and adapting treasury configurations based on market fluctuations.

“Valence expands interoperability’s scope by collaborating not just with Cosmos SDK chains but also with any crypto entity that can convey a purpose. This includes Bitcoin L2s (Layer 2), Ethereum projects, Solana decentralized autonomous organizations (DAOs), and various communities in the crypto sphere.”

Valence Utility on Cosmos Network

Introducing Valence protocol’s launch on Cosmos: a fresh economic prospect for current web3 initiatives. Notably, Valence offers increased network transparency, enabling smoother liquid staking processes.

As a researcher studying the Cosmos ecosystem, I’d like to highlight an intriguing feature of the Valence protocol: it enables crypto-native organizations to establish lending protocol-owned liquidity (POL) markets alongside liquid restaking. In simpler terms, this means that these organizations can create their own decentralized lending platforms with Valence, providing an additional source of liquidity and increasing market efficiency.

I have discovered that the Valence protocol can be effectively utilized to enhance the liquidity of altcoins in diverse blockchains. For instance, I came across noteworthy news regarding Cosmos: Neutron and Stargaze recently executed a bilateral Particle-Ordered Market (POL) deal on Astroport.

Market Impact

As a crypto investor, I see the introduction of Valence protocol as a significant step towards boosting the widespread use of Cosmos ecosystem in this era of growing mainstream interest in web3 projects. Cosmos has already managed to draw in numerous web3 initiatives spearheaded by Stride, Stargate, Crypto.com, Regen network, Celestia, dYdX, and Injective, among others. This trend is set to continue with Valence’s addition to the mix.

From my perspective as a crypto investor, the Inter-Blockchain Communication (IBC) of Cosmos has connected over $108 billion worth of web3 projects across various chains by this point. By reducing development costs and enhancing security through the Interchain, Cosmos has become a significant platform for interoperability in the crypto space.

After the introduction of the Valence protocol, the Cosmos network has seen a rise in the usage of its governance token, ATOM. Despite this growth, the value of ATOM has not been immune to the recent cryptocurrency market downturn caused by Bitcoin’s drop below $66k within the last 24 hours.

Based on current market statistics, the price of ATOM has decreased approximately 22% over the past two weeks and was trading around $6.53 on Tuesday. This mid-cap cryptocurrency is presently reevaluating the bottom points of the 2022 crypto bear market, which may potentially provide a strong foundation for the ongoing price downturn.

As a researcher analyzing financial markets, I’ve noticed an intriguing pattern in the price of ATOM against the US dollar. Specifically, there have been three distinct instances where the price has touched a support level and bounced back up, forming what is known as a triple bottom. Additionally, during this same time frame, the weekly Relative Strength Index (RSI) has not followed the same downtrend as the price. Instead, it’s shown signs of bullish divergence, indicating that while the price was oversold, the buying pressure has been increasing. These technical indicators suggest a potential reversal in the downward trend and a possible uptrend for ATOM in the coming weeks.

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2024-06-18 15:40