$ATOM is very soft, but the Cosmos ecosystem is very strong.
Current Status and Trends of the Cosmos Ecosystem
The launched Cosmos chains include:
Injective
dYdX
Celestia
Saga
Dymension
Sei
Initia
Berachain
etc.
The once extremely popular $LUNA and $OM were also Cosmos chains that later faced issues.
Future Trend:
In the next 12 months, over 10 new Cosmos chains are expected to launch.
Structural Dilemma of $ATOM Price Performance
The problem lies in the current state of the Cosmos ecosystem, which operates independently and in a fragmented manner, making it unlikely to significantly boost the price of $ATOM.
Reasons for Weak Price Performance:
Insufficient value capture mechanism: The Cosmos token economic model has not effectively captured the growth dividends of other chains within the ecosystem.
Fragmentation of decentralized governance: Cosmos chains operate independently, lacking a unified economic incentive or coordination mechanism.
Competitive Pressure: Competition in the modular blockchain space is intensifying.
On the flip side, within the Cosmos ecosystem, modular liquid staking protocols (like MilkyWay) are becoming important nodes for value capture.
MilkyWay's Positive Flywheel
MilkyWay converts ecosystem growth into economic benefits for the protocol by providing liquid staking services for Cosmos chains, and its positive flywheel effect is reflected in:
Growth Drive: The continuous launch of new Cosmos chains increases staking demand.
TVL Amplification: More staked assets flow into MilkyWay, driving the protocol's TVL growth.
Fee Accumulation: The growth of TVL brings higher staking fee revenue.
Token Value Enhancement: $MILK, as the native token of the protocol, captures dual premiums from fee distribution and market expectations.
Data Support:
MilkyWay has completed integration with chains such as Celestia, Initia, and Babylon.
Short-term Catalysts and Long-term Potential of $MILK
Short-term Positive Factors:
Possibility of Binance Spot Listing: $MILK has been listed on the Binance Futures market, and historical data shows that projects listed on Binance Futures have a high probability of being listed on the spot market within 6-12 months (Binance itself is also an investor in $MILK).
Price Dynamics: After an early surge, $MILK has experienced a pullback, with the current price stabilizing at $0.1, demonstrating market recognition of the protocol's fundamentals.
Long-term Potential:
Industry Leverage Exposure: As the primary staking entry point in the Cosmos ecosystem, theoretically, the value of $MILK is positively correlated with the growth of Cosmos ecosystem's TVL, rather than being limited to a single chain.
First-mover Advantage: Data indicates that first-mover liquid staking protocols (like Lido in the Ethereum ecosystem) typically capture 60-80% of market share. MilkyWay is in a leading position in the Cosmos ecosystem staking race.
Disclosure of Interests
I hold $MILK.
