- Cosmos recorded revenue growth in Q3.
- ATOM’s open interest continues to grow despite price consolidation.
Proof-of-Stake (PoS) sovereign blockchain Cosmos Hub [ATOM] witnessed a slight uptick in quarterly revenue in Q3 despite a decline in key growth metrics, Messari found in a new report.
In its “State of Cosmos Hub Q3 2023” report, the on-chain data provider found that Cosmos’ revenue between July and September totaled $145,343. This represented a 2.4% uptick from the $142,000 recorded in revenue during the year’s second quarter.
The revenue growth occurred in spite of the fall experienced in Cosmos’ network activity during the quarter reviewed.
Messari found that Cosmos recorded an average daily count of 16,000 active addresses in Q3. This was a double-digit decline from the 20,000 the network saw in daily average active addresses in Q2.
As the active address count fell, the chain’s transaction count also plummeted. During the quarter Messari reviewed, it found that Cosmos averaged 41,000 in daily transactions. This marked a 6% decline from the 44,000 daily average transactions recorded in Q2.
Interestingly, while the demand for Cosmos was low in Q3, its transaction fees grew. Messari reported an 8.2% increase in the network’s average transaction fee when measured in dollars, while the fee denominated in its native token ATOM surged by 45% over the same period.
Also, the network’s transaction fee measured in ATOM logged a quarter-over-quarter (QoQ) increase despite the drop in its value in Q3.
According to Messari, the altcoin’s price had fallen to its lowest level this year by the end of September.
“ATOM’s price declined for the second consecutive quarter, down 21.0% QoQ to $7.11. This lagged behind the overall crypto market, which was down 9.2% QoQ. ATOM’s total market cap ranking moved down QoQ from 23rd to 24th.”
Open interest is on fire
Benefitting from the recent market rally, ATOM exchanged hands at $9.14 at press time, having grown by 39% in the last month.
Due to the altcoin’s statistically significant positive correlation with Bitcoin [BTC], which continues to face resistance at $37,000, ATOM’s price has lingered in a narrow price range in the past few days.
Read Cosmos’ [ATOM] Price Prediction 2023-24
However, AMBCrypto’s analysis found that its open interest in the futures market has seen a significant rally during that period. ATOM’s open interest was $114.47 million at press time, its highest level since April.
ATOM’s open interest initiated an uptrend on 21st October and has since climbed by 56%. The growth in open interest signaled that traders have continued to open trade positions despite the token’s price sideways movements in recent times.