<ul>
 <li>The Osmosis and UX Chain DEXes are planning to merge.</li>
 <li>ATOM may benefit from it.</li>
</ul>
Because of a proposal to merge two decentralized exchanges on the <a href="https://eng.ambcrypto.com/search/cosmos" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Comsos [ATOM]</a> network, the focus on the blockchain’s native token could increase.
 On the 3rd of December, Osmosis [OSMO] and the UX Chain [UX] revealed that they could come together as one.
UX Chain was known as Umea before it rebranded. The project was designed to be a cross-chain DeFi hub on the Cosmos network. 
Osmosis, on the other hand, acts as an inter-blockchain communication protocol for <a href="https://eng.ambcrypto.com/search/ethereum" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Ethereum [ETH]</a> and <a href="https://eng.ambcrypto.com/search/polkadot" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Polkadot [DOT]</a>. It also acts as a DEX on Cosmos.
<h4>For security and more</h4>
Osmosis was the party that brought up the <a href="https://forum.osmosis.zone/t/merger-between-osmosis-and-umee/780" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">idea</a> of the merger. It based the proposal on the notion that it was the dominant DEX in the Comsos ecosystem. 
It also told its community that its choice of UX Chain was because of its dominance in the lending sector.
According to the statement put out, the L1 network said that the collaboration would also propel the Total Value Locked (TVL) of both protocols to new heights. 
Another benefit it mentioned was mesh security, which is considered an important part of chain evolution. 
The proposal read:&nbsp;
<blockquote>
 “The UX chain will actively collaborate with the Osmosis chain to bolster mesh security. The combined expertise of both projects will contribute to creating a more secure and resilient network, ensuring the safety of user assets and the overall stability of the ecosystem.”
</blockquote>
<h4>OSMO and UX to aid ATOM price?</h4>
The ATOM token could <a href="https://eng.ambcrypto.com/what-cosmos-proposal-848-means-for-atom/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">gain</a> immensely from the collaboration. This is because the tokens of UX Chain and Osmosis have had good performance in recent times. At press time, OSMO’s price was $0.74, representing a 30-day 70% hike.
<div id="attachment_80925" style="width: 100%" class="wp-caption aligncenter"><a href="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165057/UX_1M_graph_coinmarketcap.png" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-80925" loading="lazy" class="size-full wp-image-80925" src="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165057/UX_1M_graph_coinmarketcap.png" alt="OSMO price and UX price" width="696" height="356" srcset="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165057/UX_1M_graph_coinmarketcap.png 696w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165057/UX_1M_graph_coinmarketcap-300x153.png 300w" sizes="(max-width: 696px) 100vw, 696px"></a>
 Source: CoinMarketCap
</div>
UX, like OSMO, also had a double-digit 30-day high. Thus, if the merger goes through, ATOM could move higher than its current market cap position.
Another metric that could be affected by the merger is Cosmos’ Development Activity. AMBCrypto evaluated the crypto analysis tool Sentiment to track the project’s Development Activity. 
At the time of writing, the <a href="https://app.santiment.net/charts/KboqXzLE__sCl" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Development Activity</a> was down to 2.08.
This drawdown implies that the Cosmos development team has shipped out major features lately. Should Osmosis and UX Chain come in, this <a href="https://eng.ambcrypto.com/assessing-the-state-of-cosmos-as-its-network-activity-dips/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">condition</a> might change. 
If the development activity recovers, it could be bullish for ATOM’s price.
<div id="attachment_80926" style="width: 100%" class="wp-caption aligncenter"><a href="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165143/Cosmos-ATOM-12.10.40-04-Dec-2023.png" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-80926" loading="lazy" class="size-full wp-image-80926" src="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165143/Cosmos-ATOM-12.10.40-04-Dec-2023.png" alt="Cosmos development activity and ATOM price" width="2560" height="867" srcset="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165143/Cosmos-ATOM-12.10.40-04-Dec-2023.png 2560w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165143/Cosmos-ATOM-12.10.40-04-Dec-2023-300x102.png 300w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165143/Cosmos-ATOM-12.10.40-04-Dec-2023-1024x347.png 1024w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165143/Cosmos-ATOM-12.10.40-04-Dec-2023-768x260.png 768w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165143/Cosmos-ATOM-12.10.40-04-Dec-2023-1536x520.png 1536w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/04165143/Cosmos-ATOM-12.10.40-04-Dec-2023-2048x693.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 Source: Santiment
</div>
Read <a href="https://ambcrypto.com/predictions/cosmos-price-prediction" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Cosmos’ [ATOM] Price Prediction</a> 2023-2024
At press time, the 4-hour Relative Strength Index (RSI) was 62.62. This reading suggested good buying momentum. If buying pressure increases for ATOM, the ATOM may hit $10. 
As it stands, it is not yet confirmed when the merge will take place. But at the same time, it looks like something that is almost sealed.&nbsp;
The post <a rel="noopener noreferrer nofollow" href="https://eng.ambcrypto.com/all-eyes-on-atom-as-cosmos-prepares-to-merge-two-dexes/" data-wpel-link="internal" target="_self">All eyes on ATOM as Cosmos prepares to merge two DEXes</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://eng.ambcrypto.com" data-wpel-link="internal" target="_self">AMBCrypto</a>.

All eyes on ATOM as Cosmos prepares to merge two DEXes

AMBCrypto

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