Key Takeaways

• Osmosis fell to an all-time low in the middle of June 2023, as the market was shaken by the news that the SEC was suing the Binance and Coinbase exchanges.
• OSMO carried out a reworking of its tokenomics in July.
• Can Osmosis finally turn the corner after a disastrous year?

OSMO, the native token of the cross-blockchain Osmosis decentralized exchange, has made a small recovery after reaching an all-time low in June.

Although the coin had not been accused of being an unregistered security by the United States Securities and Exchange Commission (SEC), a cynic might well have claimed it might as well have been.

The crypto’s holders will be hoping that the news  that Osmosis changed OSMO’s tokenomics, slowing down the rate of release and reducing the rate of inflation, would give the coin some impetus.

CCN reached out to Osmosis for commentary, but did not receive a reply at the time of publishing.

But what is Osmosis (OSMO)? How does Osmosis work? Let’s see what we can find out, and also take a look at some of the Osmosis Price Predictions that were being made as of August 3 2023.

From the Whitepaper

In its technical documentation  Osmosis points out that it can be used by developers and traders, with a command-line interface (CLI) feature that makes working with the platform accessible.

It says: “The Osmosis blockchain is a decentralized network, ran by 100+ validators and full nodes, with many front-ends and development teams on it.”

Advantages and Disadvantages of Osmosis 

Blockchain analytics company Messari recently released its quarterly usage report on Osmosis . It highlighted that April and May were the busiest months in terms of crypto transfers since early 2022, and outlined some key advantages and disadvantages of the blockchain.

It said that between April and June 2023, Osmosis had

• A trading volume of a little below $1.3 million, down from $9.2 million year-on-year and $2.29 quarter-on-quarter.
• Liquidity of $123 million, down from $153 million year-on-year and $165 million quarter-on-quarter.
• $1.4 million paid fees, down from $11.2 million year-on-year and $2.4 million quarter-on-quarter.
• 8.4 million of transactions. There were no figures for this statistic for the second quarter of 2022, but it was down from 12.3 million quarter-on-quarter.

Advantages of Osmosis

Messari found that Osmosis

• Worked well in preparing for the change in tokenomics.
• Had taken steps to increase the platform’s security.
• Made a commitment to sustainability.

Disadvantages of Osmosis

Messari also found that Osmosis

• Lost users across the three months.
• Could have done better to incentivize long-term stakers, although changes to the platform should help this.
• Was somewhat unbalanced in favour of liquidity providers. Again, proposed changes to the system should fix this problem.

With Messari’s report being broadly positive about Osmosis, what does this mean about the OSMO price prediction?

First, though, let’s talk about what OSMO actually is. 

Osmosis (OSMO) Explained

Decentralized exchanges (DEXes) were set up in response to how traditional, centralized, crypto exchanges only allowed people to trade coins and tokens that the platform’s central authority allowed. 

DEXes allow people to trade whichever cryptos they want at a price set by the market. However, they are not without their downsides.

One problem with DEXes is they often have difficulty trading cryptos that are not based on the same blockchain as them.

Osmosis , which was founded in 2021 by blockchain experts Sunny Aggarwal, Dev Ojha, Josh Lee and Tony Yun is an attempt to solve this problem. It allows people to create markets in cryptos on separate blockchains. 

The Osmosis coin, known by the ticker handle OSMO, supports the Osmosis DEX and its online ecosystem.

How Osmosis Works

Osmosis is linked to the Cosmos (ATOM) blockchain network. Using a Proof-of-Stake (PoS) model, people can add blocks to the blockchain based on how much OSMO they hold. 

People on Osmosis can use their ATOM to help fund liquidity pools, which help with trading, and the link to Cosmos makes working with different cryptos on different blockchains easier. 

People who hold OSMO have the chance to add blocks to the blockchain every day, and the coin can be staked in return for rewards. Holders can also vote on changes to how the liquidity pools are run. 

OSMO can also be bought, sold, and traded on exchanges. 

OSMO Price History

Let’s now take a look at some of the highlights and lowlights of the Osmosis price history . While past performance should never be taken as an indicator of future results, knowing what the coin has done can help give us some very useful context when it comes to either making or interpreting an Osmosis price prediction. 

When OSMO first came onto the open market in October 2021, it was worth about $5.10. The market evidently considered it overvalued and it dropped to below $4 in the middle of December before recovering to close the year at $6.21.

Things looked good for Osmosis in early 2022, as the coin shot up, breaking past $10 in early January. Although it dropped from that high, it went back up and it reached an all-time high of $11.21 on March 4 2022.

Following that, though, the crypto market collapsed, with a string of market crashes damaging OSMO. The coin fell to a low of $0.68 on June 18, but recovered throughout the rest of the summer. 

In November the FTX exchange declared bankruptcy and OSMO went down with the market, closing the year at $0.685. This meant it had lost nearly 90% of its value throughout the course of 2022.

Osmosis in 2023

So far, 2023 has proven to be, in many ways, just as bad as last year. Although OSMO broke past the dollar in late January, it was back under the buck by the end of February.

The price kept declining, reaching an all-time low of $0.4477 on June 15. This news came after the crypto market was shaken by the announcement that the SEC was suing the Binance and Coinbase exchanges. 

It then made a recovery over the following month. On July 15, it reached $0.5604. This may have been in response to the ruling that Ripple (XRP) was not a security if it was being sold on exchanges.

Since then, though, it has dropped. On August 3 2023, it was trading at $0.4675, perilously close to its record low.

At that time, there were 492.5 million OSMO in circulation out of a total supply of 587.3 million. This gave the coin a market cap of about $230 million, making it the 123rd-largest crypto by that metric. 

Osmosis Price Analysis

OSMO has had a pretty bad time over the last couple of months . Before the SEC announced its lawsuits on 5 June, it was worth $0.5809, already down over the course of the year. Over the next 10 days, it fell more than 20% to reach its record low.

It then climbed 25% over the course of the next month. However, it then dropped by more than 15%. Its price at the time of writing was less than 5% higher than its all-time low.

Osmosis dropped about 75%  from October 28 2022 to June 14 this year.  If we look at the chart below, we can see that the trendline declined consistently. 

The price spiked, according to Binance figures, to around $5.70 on July 14, but soon fell down.

The Moving Average Convergence Divergence (MACD) indicator says another downtrend started on July 24. The Relative Strength Index indicator also suggests that it could become oversold soon. This implies that it might make a recovery in the near-future.  

The last time OSMO was in the oversold zone was on July 14. Before that, it was oversold on New Year’s Day, prompting a comeback at the start of 2023. 

Let’s look at the above chart, which records data on an hourly basis. It suggests that OSMO may have reached a low that it can recover from. 

If we believe that price changes happen in five waves, it looks like we are close to the bottom of the final wave. 

However, we would need Osmosis to spend some time above $0.465 to confirm a new upturn.

Osmosis Coin Price Prediction 

With that all out of the way, let’s take a look at some of the Osmosis price predictions that were being made as of August 3 2023.

It is important to remember that price forecasts, especially for something as potentially volatile as crypto, very often end up being wrong. Also, keep in mind that many longer-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice. 

Firstly, CoinCodex  made a short-term Osmosis price prediction which said it would soon reach a new all-time low. It said OSMO would trade at $0.4365 by 7 August. By September 1, though, it should have recovered to $0.518.

The site’s technical analysis was bearish, with 26 indicators sending negative signals and just four making bullish ones.

Osmosis Forecast for 2023

With regards to other sites making Osmosis price predictions for 2023, DigitalCoinPrice  said that the coin should reach $1 this year, while Bitnation  had it worth about $0.70 and PricePrediction.net  thought it could reach $0.56. 

Osmosis Forecast for 2025

When it came to making an Osmosis price prediction for 2025, Bitnation was out in the lead at $1.64. DigitalCoinPrice followed it at $1.54. PricePrediction.net was more cautious, saying the coin would trade at $1.14 in two years time.

Osmosis Forecast for 2030

Moving on to a more long-term Osmosis price prediction for 2030, PricePrediction.net was the most bullish site, saying the crypto would be worth $7.23 that year. Bitnation had it trade at $3.97. DigitalCoinPrice made an OSMO price prediction that saw it stand at $4.89 at the start of the next decade.

Is Osmosis a Good Investment?

It is difficult to tell. On one hand, the idea of a platform that supports the ability to trade what tokens users want while also allowing them to work across blockchains certainly has its appeal.

On the other hand, it has not performed well lately, and its recent price movements have seen it fall to close to June’s all-time low. 

It is often argued that the best time to buy is during a dip. While it would be hard to say that OSMO was not in a dip, we still do not know when the dip will end, nor what price OSMO can reach if and when it recovers.

It remains to be seen whether changes to the platform can  make a difference to a coin that has been in freefall since reaching a record high in early March 2022.

As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in OSMO.

Will Osmosis go up or down?

No one can really tell right now. While the Osmosis crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up. 

Should I invest in Osmosis?

Before you decide whether or not to invest in Osmosis, you will have to do your own research, not only on OSMO, but on other, related, coins and tokens such as Cosmos or Uniswap (UNI).

Either way, you will also need to make sure that you never invest more money than you can afford to lose.

FAQs 

How many Osmosis are there?

On August 3 2023, there were 492.5 million OSMO in circulation out of a total supply of 587.3 million.

Will Osmosis reach $10?

It could do but, if it does, it won’t happen for some time yet. PricePrediction.net thought it was possible the coin could get to that level  in 2031. 

It is worth pointing out that OSMO has reached that level before, with its all-time high of $11.21 coming in early March 2022. 

What is Osmosis used for?

OSMO is used to reward people who add blocks to the Osmosis blockchain, which powers a decentralized exchange (DEX).

Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.