- Osmosis is the automated market maker (AMM) protocol.
- Its users can earn incentives through liquidity mining.
- The OSMO price rose around 71% in the last three months.
Automated market maker Osmosis (OSMO) on Tuesday made it to the list of top 10 blockchains by Total Value Locked (TVL) on Tuesday. The Osmosis (OSMO) coin gained 2.50% to US$8.9938 at 1:54 pm ET, while its 24-hour trading volume rose by 18.27% to US$98,929,288.
Osmosis is built for liquidity providers who own and governs it. A significant portion of the coins is reserved for liquidity providers for offering them as incentives for their contributions.
It also offers them ownership stakes in the protocol. Liquidity mining is a process to earn liquidity incentives in Osmosis, the first Cosmos project to introduce the liquidity incentives. The protocol aims to provide liquidity and be the AMM across all ecosystems.
The OSMO coin has a market capitalization of US$1.7 billion.
TVL, a metric to measure the value and usage of DeFi on various smart contract-capable blockchains, has been gaining popularity among users.
TVL is a measure to see the absolute value locked in the DeFi protocols. However, it cannot be used alone to compare competing chains directly due to their inherent value for staking, such as tokenized assets.
The measure can be better used with the market capitalization as a ratio. The market capitalization ratio (MCAP) and the TVL give a more precise figure to understand the highest DeFi utilization rate of native assets and tokens on a particular blockchain.
A low MCAP/TVL ratio shows higher DeFi utilization.
Image Description: Osmosis (OSMO) among top 10 chains by TVL, coin gained 71% in three months.
Osmosis’s total value is 1.94647, with only one DeFi protocol, Osmosis DEX. The other chains have more protocols; for example, Ethereum (ETH) has 415 and Polygon (MATIC) has 180 protocols, but their MACP/TVL ratio is higher than OSMO.
OSMO has a self-reported circulating supply of 186.3 million. Its maximum supply is 1 billion, and the total supply is 325,000,000.
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Its price touched an all-time high of US$10.96 on January 17, 2022, and an all-time low of US$1.24 on July 20, 2021. The coin is available for trading on Osmosis and MEXC.
Cryptocurrencies are volatile; hence, investors should exercise due diligence before investing in digital assets.