Osmosis price prediction: OSMO slides following March record

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Osmosis is down almost 90% from its all-time high six months ago, but can it rebound?

The Osmosis (OSMO) cryptocurrency logo showing a science experiment beaker behind a magnifying glass on dark purple background                                 
Osmosis is currently ranked number 216 on CoinMarketCap – Photo: Alamy.com
                                

Contents

Built on the Cosmos blockchain, Osmosis purports to be an advanced automated market maker (AMM) protocol. The network focuses on customisable AMMs, including token swaps, liquidity pools staking and governance.

The developers of Osmosis explained on Medium that, using the Cosmos SDK, they wanted to create a protocol that would let users “design, build and deploy their own customised AMMs”.

Launched in late 2021, Osmosis was the eighth blockchain on the Cosmos network to enable inter-blockchain communication (IBC), and the sixth platform to connect to the Cosmos Hub.

The Cosmos token, OSMO, has performed well since its launch and has gained significant market traction – but what are the consequences of this for an Osmosis price prediction?

First, let’s take a look at the token’s background before examing what forecasters are predicting. 

What is Osmosis (OSMO)?

Osmosis claims that unlike other AMMs, such as Bancor or Uniswap, Osmosis uses a “process of experimentation and rapid iteration”, whereby the “wisdom of the crowd” is leveraged in order to create bespoke solutions to liquidity pools.

Rather than having to adhere to a one-size-fits-all approach when developing AMMs, designers are able to render highly-customised AMMs to ensure they are suitable for their function. Not only are parameters like swap fees or token weights customisable for each liquidity pool, so are curve algorithms and time-weighted average price calculations, according to the project’s official literature.

The governance mechanism in the ecosystem enables AMM stakeholders, also called liquidity providers, to vote on how the various pools will be managed.

According to a blog produced by the platform, governance is an integral part of the Osmosis ecosystem. “To make such a progressive, adaptable protocol work, governance will be a key factor to Osmosis’ success,” it stated.

“Almost every element of the protocol is intended to be upgraded as necessary to keep Osmosis on track to becoming the most innovative AMM platform operating today. Stakeholders will vote and help plan to implement new features for the protocol, like front-running protection, validator-backed oracles and more.”

Furthermore, with built-in IBC, the platform can connect with the Cosmos chain ecosystem. According to its vision statement, the protocol claims that “after integrating native Cosmos assets, Osmosis will integrate with non-IBC enabled chains, including Ethereum-based ERC-20s (using the Althea gravity bridge), a variety of chains including Bitcoin-like chains, and alternative smart contracting platforms by leveraging custom pegs”.

The project also outlines its liquidity provider incentives, claiming that third parties will be able to add incentive mechanisms to their liquidity pools.

The OSMO token is used as a governance token, a token for distributing liquidity mining rewards, and for setting the base network fee.

Founders

Osmosis was established by Osmosis Labs, which in turn was founded by Sunny Aggarwal and Josh Lee.

Aggarwal started studying engineering and computer science in 2015 at the University of California, Berkeley, USA. However, he didn’t complete the course and dropped out in 2017. From there, he started working as a research scientist at software company Tendermint and within a year was also co-hosting the weekly blockchain podcast, Epicenter. Before co-founding Osmosis Labs in January 2021, he had also co-founded blockchain infrastructure business Sikka in November 2018.

Lee, who is based in South Korea, started his university education at Anderson University, in Indiana, USA, according to his LinkedIn page. He subsequently worked for a variety of blockchain companies, including as project manager for Lunamint, which published Cosmos-focused updates, and as an ecosystem development analyst for Tendermint from 2019 to 2021.

Before co-founding Osmosis Labs, Lee also co-founded Chainaspsis, a blockchain start-up based in South Korea, where he is also the start-up’s CEO. But what is the effect of this information on an Osmosis price prediction for 2022? 

Before looking at that, let’s examine the performance so far of OSMO.

Token’s performance

The OSMO coin, according to CoinMarketCap, dropped soon after its release from an opening price of $5.12 on 5 October 2021 to an intraday low of $4.02 on 18 October 2021. OSMO subsequently rose to an intraday high of $6.65 on 9 November 2021, before falling away to a daily low of $4 on 15 December 2021.

From there, OSMO rapidly began to rise again to a near-record high of $10.81 on 17 January 2022, before dropping more than 31% in five days to an intraday low of $7.36 on 22 January 2022. It bounced back to a $9.22 high on 25 January before tumbling to a $6.85 low on 31 January. The coin rose soon after until it reached an intraday high of $9.49 on 7 February 2022, only for it to slip to the intraday low of $7.97 on 14 February 2022.

OSMO coin has subsequently traded up and down again before reaching its all-time high of $11.21 on 4 March 2022. A steep decline followed from that price point, aggravated by multiple market crashes. In the 30 days leading up to 17 June, the OSMO token had lost over 50% of its value, and a further 94% since the token’s all-time high. 

As of 18 August, the token is currently trading at $1.22, and CoinMarketCap recorded an OSMO market cap of around $269m.

Osmosis has a maximum supply of 1,000,000,000 OSMO tokens and a circulating supply of 282,464,369 OSMO (28%).

So how does this information impact an OSMO price prediction?

Osmosis coin price prediction: Expert opinion

While price predictions have some use as an indicator of which direction a particular asset’s price may move in, you must remember that these indications are possibilities and not certainties. This is especially the case when looking at long-term forecasts, as these can frequently be completely off the mark. One reason for this is the inherent volatility of the crypto market, but there are also numerous unknown factors that could influence future prices.

With this in mind, let’s look for the latest Osmosis crypto price prediction.

At the time of writing, DigitalCoinPrice had forecast that this year OSMO could achieve a value of $1.83 in September, and $1.63 in December. The site forecasts an average value of $1.74 in 2023. The forecaster’s Osmosis price prediction for 2025 stands at $2.39, but $2.13 in 2026. The site then forecasts a general year-on-year uptrend, making an Osmosis price prediction for 2030 of $5.56.

WalletInvestor thinks OSMO is a “bad long-term (one-year) investment” and will be worth $0.17 in a year’s time.

Gov Capital has a similarly bearish sentiment. The site forecasts the coin will be worth nothing within the next 12 months.

FAQs

How many Osmosis are there?

Osmosis has a maximum supply of one billion OSMO tokens and a circulating supply of 282,464,369 OSMO (28%).

Is Osmosis a good investment?

Potentially. DigitalCoinPrice thinks it could reach $5.56 within the decade, but other forecasters are wary.

It is important to understand, however, that cryptocurrencies are highly volatile assets and analysts’ forecasts can often be wrong. You should always carry out your own research before deciding to make any investment.

Will Osmosis go up?

It could go up however it could also go down. 

Remember, cryptocurrencies are highly volatile assets and forecasts from analysts can be wrong. Never invest any money you cannot afford to lose.

Should I invest in Osmosis?

Investing is a highly personal endeavour. Do your own research and keep up-to-date on any developments in the Osmosis ecoystem that could boost or harm its prospects.

Remember, investing can be risky – that’s why you should always conduct your own research. And never invest money that you cannot afford to lose.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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