A Cosmos-based DeFi altcoin project has raised $10 million amidst turbulent market conditions. Investors include giants like Bitfinex and CMS Holdings.
Cosmos-based DeFi altcoin project raises $10 million from giants
The negative conditions that have continued since the beginning of November have not been able to keep investors away from the DeFi market. In the midst of the ongoing bear market, giant companies continue to pursue their potential projects. In the latest development, Cosmos-based DeFi project Onomy has secured $10 million for the development of its protocol. The project is building a Blockchain that brings together DeFi and the foreign exchange market. Bitfinex, Ava Labs, Maker Foundation, and CMS Holdings were the companies that supported this effort.
1/ We're thrilled to announce that we've closed a $10M round, getting Onomy closer to its goals of converging DeFi & Forex while rearchitecting the Web3 user experience. https://t.co/RwLOhyBtjr pic.twitter.com/m4OT9IVIVS
— Onomy Protocol (@OnomyProtocol) November 23, 2022
DeFi and personal storage solutions remain hot topics due to the FTX bankruptcy that occurred in November. Some experts have said that the most important lesson to be drawn from here is the importance of DeFis rather than central platforms. Forecasts for the near future of the sector signal another challenging year, while investors still maintain their interest.
Institutional investors continue to be interested in altcoin projects
Institutional investors are still keen on the market, according to a survey conducted by Coinbase Oct. 21-27. 62% of institutional investors surveyed reported increasing their positions in the past year. On November 9, just days after the FTX scandal, ARK Investment’s Cathie Wood added another $12.1 million to the company’s existing stake in Coinbase. Also, banks continue to show interest in the industry, with JP Morgan using DeFi for cross-border transactions and BNY Mellon launching its own Digital Asset Custody Platform.
Still, some research says it will remain under difficult conditions for the blockchain industry until next year. The cryptocurrency market has a long way to go before it regains its former volume.
How about Bitcoin?
As adverse conditions continued to add to the pressure, the Bitcoin price dropped below $16,000 on Nov. 21. Thus, it traded at $15,800 for the first time since November 2020. The drop in price caused many investors to exit the market or sell BTC. According to analytics firm Santiment, many investors have chosen to sell at a loss to hedge further declines. This caused BTC to record the most loss movement in the last three years.
According to data from Coinglass, Bitcoin liquidated meanwhile totaled $110.54 million. BTC liquidations of $46 million accounted for 42% of the total sums removed from the market.
The profit/loss ratio of BTC’s daily on-chain trading volume recorded the lowest profit since November 2019. According to Santiment, “jumps usually occur when this measurement is severely negative.” cryptocoin.comAs you follow, Bitcoin is currently trading at $16,451.89.
