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Cosmos Ecosystem: An In-Depth Analysis of Upcoming Catalysts
Jake Kennis
Key Takeaways
28 min read
  • The introduction of Noble Chain is set to alleviate liquidity issues in the Cosmos ecosystem by issuing native USDC, mitigating bridge risks and fragmentation. Additionally, Axelar Network's General Message Passing (GMP) enhances cross-chain functionality, which can increase application growth and interoperability between the Cosmos ecosystem and beyond.

  • Stride Zone, a leading LSD provider with $272 million in 30-day IBC volumes and over $35 million in TVL, offers STRD stakers 10% of staking rewards, a figure expected to grow with platform expansion. Shared security with the Cosmos Hub in June 2023 and more DeFi integrations hint at further growth in Stride's annualized estimated fees of $7.8m, benefiting STRD and ATOM stakers.

  • Neutron Chain, the first consumer chain secured by Cosmos Hub, plans to airdrop 7% of NTRN to ATOM stakers and will share 25% of transaction fees and MEV revenue with stakers/validators. They are a general-purpose chain, backed by many strong teams such as the team behind Lido and have many apps on testnet.

  • Injective Protocol, a Cosmos app-chain focused on creating a scalable order book, has seen its INJ token grow following a $150m ecosystem fund in January. Despite daily volumes being lower compared to competitors, there are catalysts poised to increase activity such as their integrations with Elixir Finance, Astroport and the many other dApps launching there.
  • Sommelier is currently the 9th largest Cosmos chain by TVL [$17.4m]. Notably, it has released its ‘Real Yield USD’ and ‘Real Yield ETH’ strategies that are outperforming most other competitors at the time of writing (measured in base APR and no incentives).

The Cosmos ecosystem is filled with nearly 50 independent chains that are interconnected. Cosmos, or what can be called the ‘IBC Ecosystem’, is simply a set of open-source tools that has sparked a Cambrian explosion of creativity and experimentation in the form of sovereign Layer-1 chains. The Cosmos ecosystem has been around since 2014 and the vision is just starting to come together, with the end game being a world with millions of chains.

Up until today, this diverse set of developer talent and vision of the Cosmos ecosystem has brought us to some of the most notable technological and political experiments in crypto today:

  • The first secure implementation of a PoS chain {{Jae Kwon invented Tendermint, which delivered PoS by using a...