Original Author: Curious J, Crypto KOL

Translation: Felix, PANews

The best investments are the ones no one talks about. The Cosmos ecosystem has been dormant for too long and is the easiest area in the crypto industry to achieve 100x returns. Recent developments indicate that fundamentally strong and sustainable narratives will benefit from the upcoming bull market. Here are 10 reasons to pay attention to the Cosmos ecosystem:

Perpetual Contract Rising

Just this year, the trading volume of derivatives has exceeded $400 billion, with 44% coming from dYdX. The upcoming release of dYdX v4 helps illustrate the immense power of the application chain theory. (Note: The application chain theory refers to the desire of every protocol built on the blockchain to scale. They will seek to transition into sovereign chains, fully controlling their protocols without relying on the underlying L1.)

Native Liquidity

In DeFi, native liquidity is king. Native liquidity not only creates seamless on-chain activity but also eliminates bridging risks. Cosmos doesn't have native stablecoins, but this situation is about to change.

Recently, Tether's stablecoin USDT has been integrated into the Kava blockchain, bolstering Tether's dominant position in the field and introducing new native liquidity to Cosmos.

Additionally, there are native chains geared towards introducing new and more native liquidity to Cosmos. Chains like Agoric focus on expanding their algorithmic stablecoin IST and Noble, issuing native USDC. Liquidity on Cosmos is only a matter of time, not if.

Native Liquidity Staking Module

Through this module, users can automatically unlock 25% of pledged ATOM or unlock Cosmos as a liquidity staking derivative. This innovative feature significantly improves the liquidity of Cosmos assets, especially considering that most assets are currently pledged. (Note: In early May of this year, Cosmos Hub passed a new proposal on liquidity staking, which will replace the existing Cosmos Hub staking, distribution, and slashing modules with a liquidity staking module. ATOM holders are no longer restricted by the previous 21-day lock-up period and can stake their ATOM for liquidity while enjoying staking rewards and using ATOM for other use cases.)

Safety

One of the main advantages of application-specific blockchains is the ability to protect and control their own block space. By leveraging various economic zones, Cosmos can provide security to new or established chains in a cost-effective manner.

There are currently several key security measures being implemented and developed:

• Babylon Chain brings security to POS chains similar to Bitcoin chains

• Cosmos and interchain security

• Osmosis mesh security

These solutions are designed to make Cosmos scalable, secure, and cost-effective.

Token Economy Upgrade

Cosmos tokens have undergone significant changes. The era of high annual return rates is now over, and the focus is on real yield narratives. Osmosis recently upgraded the OSMO token to fully adapt to this market change.

ATOM is the largest market capitalization Cosmos token and has always been actively committed to giving back value to holders and stakeholders. Their focal areas include:

• Reducing inflation

• Increasing the value of ICS

• Liquidity owned by the protocol

• Expanding Subdaos

• Expanding the community pool

Enhanced Interoperability

IBC is expanding its influence beyond the Cosmos ecosystem, such as extending to the NEAR Protocol, Polkadot, and Avalanche ecosystems. This development is beneficial not only to users but also to builders as it makes communication and development easier.

Axelar Network's general message passing has also gained attention across various EVM chains. All of this is aimed at promoting greater liquidity in the entire ecosystem.

Enhanced Composability

Excellent builders are constantly improving the communication experience for users and builders. The following have been launched so far:

• squid: The ultimate cross-chain trading tool

• Skip Protocol: Leveraging MEV

• TFM: DEX aggregator on Cosmos

Inter-chain BD

In many ecosystems, business development is decentralized, and methods to expand market share vary. Cosmos takes a different approach. Through initiatives like Osmosis Grants and ATOM Accelerator, they collaborate to promote the development of Cosmos.

New chain launches

There is continued interest in the theory of application chains and the benefits it brings to users as well as builders seeking greater composability and customizability. Upcoming launches include:

• Bera Chain

• Archway (just launched)

• Duality Labs launched as a consumer chain

Modularity

For those who attended last week's Modular Summit in Paris, modularity is thriving. With Celestia soon to launch on Cosmos, this trend continues. This release will facilitate seamless deployment of numerous chains.

If you thought the Cosmos ecosystem was already dead, you clearly haven't been paying attention to the latest developments in the Cosmos ecosystem. Liquidity is coming, application building is geared towards long-term goals, and users will follow suit. Cosmos offers functionality that dApps on Ethereum cannot provide.