Frax Finance’s Strategic Leap into the Cosmos Ecosystem

Through this collaboration, we’re taking a significant leap in transferring the FRAX stablecoin and its staked variant, sFRAX, from Ethereum to the Cosmos network, renowned for seamlessly connecting around 80 blockchains.

A Vision for Expansion and Adoption

At the heart of this expansion is the goal to increase the use of FRAX and sFRAX in various applications such as trading, savings, payments, and collateral. Noble’s successful integration, which boasts a USDC circulation supply exceeding $195 million, demonstrates the potential for smooth asset integration on major Cosmos chains like Osmosis, dYdX, Celestia, Sei, and Injective. This partnership portrays a more fluid and interconnected Cosmos ecosystem, providing a decentralized stablecoin option with a bright future for widespread adoption.

Ambitious Targets and Roadmap

Frax Finance intends to build upon its current growth; the company aims to manage a staggering $100 billion in assets by 2026 as part of an ambitious plan. This objective is encompassed in a detailed “singularity roadmap,” which focuses on expanding the TVL (Total Value Locked) within Frax Finance’s layer 2 blockchain, Fraxtal. With a present TVL of only $13.2 million, the strategy involves introducing new assets and revitalizing a scheme to distribute protocol earnings among holders of its native tokens. This bold ambition aspires to fully secure the FRAX stablecoin with sufficient collateral and enhance returns on sFRAX.

The Role of Noble in Frax Finance’s Strategy

In simpler terms, Noble plays a crucial role in expanding the Cosmos network by allowing the inclusion of FRAX and sFRAX as native digital assets. This development not only keeps these assets interoperable within Cosmos but also builds on Noble’s proven success, demonstrated through its integration with Circle’s USDC. By enabling the integration of assets with major Cosmos chains, Noble enhances the versatility and usefulness of FRAX and sFRAX across various applications, increasing their overall liquidity.

Frax (FXS) and Cosmos (ATOM) Chart Analysis

Frax Finance’s Strategic Leap into the Cosmos Ecosystem

Photo: TradingView

The FXS chart shows a small upturn as the price has risen above its 20-day moving average, hinting at a possible change in direction. This upward trend could be driven by positive news about expansion. Nevertheless, the longer-term moving averages of 50, 100, and 200 days remain high, suggesting that the asset is still experiencing a downward trend. The Relative Strength Index (RSI) at 64.86 indicates growing purchasing power, but it hasn’t yet entered overbought territory, leaving space for further gains. Traders might consider confirmed signs of a trend reversal by observing persistent price action above the 20-day moving average while keeping an eye on resistance levels at the higher averages.

Frax Finance’s Strategic Leap into the Cosmos Ecosystem

Photo: TradingView

The Cosmos price is currently in a holding pattern, sitting close to its 20-day moving average (EMA). Although there’s growing excitement about Frax joining the platform, the cost remains beneath major EMAs, implying a downward trend. The Relative Strength Index (RSI) stands at 57.07, signaling modest buying activity that hasn’t yet reached extreme levels. Traders might consider a strong move above the 20-day EMA as a bullish sign, but they should be wary of potential resistance from higher EMAs.

In simpler terms, both projects have experienced slight increases in activity recently, possibly due to investors’ expectations of upcoming integration news. This could lead to greater use of each project in the future.

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2024-04-04 15:57