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- Cosmos Hub’s Liquid Staking Module just went live, bringing new utility to $ATOM.
- $ATOM price has jumped 3% in the past 24 hours after seeing a slight increase on Wednesday.
Cosmos Hub, the interchain service provider of the Cosmos Network and blockchain platform powered by the native token $ATOM, had a major upgrade this week. This is after the platform’s Liquid Staking Module went live on September 12, adding to $ATOM’s utility within the DeFi ecosystem.
Cosmos Hub’s liquid staking model is now live
With Cosmos Hub’s upgrade and unlocking of the Liquid Staking Module, $ATOM holders have fresh access to new yield opportunities. LSM means tgose with $ATOM can now liquid-stake already staked $ATOM tokens without havig to wait for the 21-day unbonding period to elapse.
The v12 upgrade is successfully completed ⚛️
The Liquid Staking Module is live on the Cosmos Hub!
With LSM the Hub unlocks new dynamics within the $ATOM Economic Zone.
Users can now directly liquid-stake their already staked #$ATOM without waiting for the unbonding period. pic.twitter.com/IdIyr8nsdL
— Cosmos Hub ⚛️ (@cosmoshub) September 13, 2023
This is good news for $ATOM holders as it means they can participate more in the DeFi ecosystem and still earn from staking yield. One can unstake $ATOM and directly liquid-stake it, this time with no 21-day restriction.
The community should however note that an initial cap of 25% has been set on the total amount of $ATOM that can be liquid-staked. Other measures to “mitigate liquid staking risks” have also been instituted via governance-controlled parameters.
“As an additional security feature, validators who want to receive delegations from liquid staking providers would be required to self-bond a certain amount of $ATOM,” Cosmos Hub announced.
$ATOM price outlook
The market’s reaction to the upgrade was a bump in the price of $ATOM. Amid the buy pressure, the token’s value rose to highs of $6.80 on Thursday. CoinGecko data shows the cryptocurrency is currently 3% up in the past 24 hours.
While price has seen an upside over the past two days, $ATOM remains largely in a downtrend since the year-to-date peak above $15 in February. The RSI and MACD indicators on the daily chart continue to give bears the upper hand, while price is poised at a key resistance-turned-support zone.
Cosmos Hub ($ATOM) price chart. Source: TradingView
$ATOM needs to bounce off the highlighted horizontal support or risk a nosedive to below $2. The main upside hurdle would be near YTD level.