Will OSMO Pump or Die? A Quick Exploration of Osmosis Ecosystem

By Bfab | Good vibes | 18 Feb 2022

As you may know, OSMO is the coin of Osmosis blockchain, which is built with Cosmos SDK, like Cosmos, Terra or Binance chain. Osmosis allows to earn DeFi yield farming rewards through multiple liquidity pools, with APYs up to 100% or more. Using Osmosis is quite easy with the IBC transfers allowed in the Cosmos ecosystem. Cosmos has in fact managed to built an internet of the blockchains faster than Polkadot which competes in the same category.

Will OSMO pump or die?

Although this question looks provocative, it makes sense in the crypto world. Most of the projects which have no utility will die sooner or later. The point is that OSMO has some utility since it allows to easily bet on liquidity pools in order to earn yield farming rewards. Therefore, it is quite unlikely that it will die soon. Regarding a possible rally, it is a possibility since this coin is not listed on any major centralized exchange yet. As Binance use Cosmos SDK for its own blockchain, we can assume that sooner or later they will list OSMO which is part of the same ecosystem. However, OSMO is an inflationary coin. The circulating supply is progressively growing, with a growth pace which is decreasing. Therefore, the inflation is progressively decreasing, but is still high. That's why it makes no sense to just hodl OSMO without doing anything: to compensate inflation, it has to be staked on Osmosis blockchain, or used in a liquidity pool vs. another token in order to earn yield farming rewards.

What's next?

Nobody can really say if OSMO will increase or decrease in the short term. It mostly depends on Bitcoin, like usually in crypto. However, taking into account the rewards that you can earn through staking or farming, it makes sense to keep it for a while, at least until it is listed by a major exchange.

Below a few referral links to earn more cryptos...