Recently, InCel entries have appeared frequently in the encryption community, referring to the Cosmos-based Layer 1 blockchain Injective and the modular blockchain Celestia. Many people even believe that InCel will become the SoLunAvax of this cycle.
The reason why InCel appears is because Injectives native token INJ and Celestias native token TIA have been very impressive in terms of price performance recently.
On December 12, INJ exceeded $25, with a 24-hour increase of 20.02%, and the price as of press time was $26.57; while TIA rose to exceed $11.5, with a 24-hour increase of 14.9%, a record high, and the price as of press time was $11.7.
According to CoinGecko data, INJs current market value is US$2.246 billion, ranking 36th in the cryptocurrency rankings; TIAs current market value is US$1.296 billion, ranking 45th in the cryptocurrency rankings.
In+Cel: New and old Layer 1 of Cosmos
Injective and Celestia are both L1 blockchains based on the Cosmos ecosystem.
Launched in November 2021, the Injective mainnet provides a decentralized order book trading infrastructure for accessing cross-chain spot and derivatives markets with zero gas fees.
Specifically, Injective is an application-specific blockchain built using the Cosmos SDK and aims to be an interoperable decentralized transaction infrastructure layer. The architecture is different from DEXs running on Ethereum or other Layer-1 in that the protocol provides trading services on its own execution layer and allows third parties to build trading platforms on Injective without permission. All trading platforms built on Injective share the same order book to maximize capital utilization.
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Although Injective Chain is built using the Cosmos SDK, it uses a custom Ethereum account, and its application-generated wallet, to parse EIP-712 type data.
In terms of value accumulation, Injective essentially consumes 60% of all exchange fees managed by community-led auctions, thereby creating deflationary pressure on the entire token supply. The remaining 40% is taken by relayers to incentivize the depth of liquidity on the exchange. In other words, the INJ token’s value accumulation is a function of transaction volume, not transaction count like other alternative protocols.
INJ tokens can also be used as collateral backing for derivatives and, unlike other derivatives markets, can serve as an alternative to stablecoins. In addition, Injective integrated with Skip Protocol to return MEV earnings to stakeholders and strengthened the value accrual case in early February this year.
In August this year, InjectiveupgradeIn addition to its token economics, all dApps built on Injective can contribute to the INJ burn auction and there is no limit on how much they wish to burn. This can make the on-chain economy powered by INJ even more powerful, with burn auctions now able to capture value from all dApps in the rapidly growing Injective ecosystem.
Injective ecological dApp; image source Injective official website
As a strong project of the new generation of the Cosmos ecosystem, Celestia is comparable to the old L1 chain Injective in terms of technological innovation and market attention.
Celestia is also a Layer 1 chain built based on the Cosmos SDK that focuses on modularity. Its basic layer consists of consensus and data availability, that is, the consensus and data availability layer, which is referred to as the DA layer by the project party. Two key functions of the DA layer are data availability sampling (DAS) and namespace Merkle trees (NMT).
Compared to monolithic blockchains that independently perform execution, settlement, consensus, and data availability, modular blockchains decouple these functions between multiple dedicated layers as part of a modular stack, similar to a Lego structure. Each module provides better flexibility and scalability.
Related Reading:A quick look at the design advantages of modular blockchain Celestia and the market value potential of TIA tokens in one article》
On September 26 this year, Celestia announced the launch of the Genesis Drop. Qualified participants can claim up to 60 million TIAs on October 17. Subsequently, Injective ecological DEX Helix launched a pre-release token futures trading service, allowing users to trade upcoming tokens before they are officially released or listed on the trading platform. Celestia (TIA) is the first futures token supported by the market.
On October 31, the Celestia mainnet was launched, and then its native token TIA was listed for trading on many mainstream CEXs. Within 10 days after the launch, it fluctuated slightly around 2.5. After a strong rise on November 11, it started to rise, with the highest price rising to $7.40. On December 12, TIA price exceeded $11.5, reaching a record high.
What other popular projects are in the Cosmos ecosystem?
Recently, with the increasing popularity of public chain sectors such as Solana and Avalanche, the community is also curious whether Cosmos will be next.
In November this year, the Cosmos Hub community launched the ATOM Production Reduction: Set the Maximum Inflation Rate to 10% proposal code-named #848 and called on the community to vote. According to official document information, the proposal aims to reduce the ATOM inflation rate from approximately 14% to 10%, which will reduce its Stake annual interest rate from approximately 19% to approximately 13.4%. In the following days, Cosmos ecological tokens saw a general rise, with ATOM tokens rising by 12% on the 7th.
Injective and Celestia have performed well recently. What other projects in the Cosmos ecosystem are worthy of attention?
Osmosis
Osmosis is the leading DEX in the Cosmos ecosystem. It mainly provides cross-chain transactions. Users can earn income through Staking or Liquidity Pool. In October 2021, Osmosis announced that it had raised US$21 million in private token transactions, led by Paradigm Ventures.
According to DeFiLlama data, Osmosis’ current TVL reaches US$157 million, with an increase of 18.67% in the past month. The current price of its native token is US$0.9, with an increase of 22.9% in 7 days.
Kujira
Kujira is a Cosmos Layer 1 platform that creates an ecosystem of dApps and infrastructure. According to official statistics, as of November 14, Kujiras ecological matrix currently contains 22 protocols/products, including collateral clearing, DEX (margin trading, limit orders, etc.), liquidity income farming, lending market, Launchpad, wallet, Strategic trading, OTC trading, P2P trading, NFT trading market, LST, on-chain ETF and other tracks
According to DeFillama data, the TVL of the Kujira ecosystem has grown significantly since September. As of now, its TVL is US$95.39 million, an increase of 13.35% in the past seven days. The current price of its token KUJI is US$4.26, with an increase of 28.9% in 7 days.
Neutron
Neutron is a permissionless smart contract platform built using the Cosmos SDK that allows developers to deploy applications once and scale them across the entire IBC network of interconnected blockchains without having to deploy or maintain multiple custom versions of their protocols .
Neutrons native token is NTRN. On November 14, Binance launched the NTRN 1-50 times U-based perpetual contract. As of press time, the price of NTRN was US$0.81, with a 24-hour increase of 38.3%.
Related Reading:A brief analysis of Neutron: Promoting Cosmos to achieve inter-chain growth and innovation》
Sei Network
Sei Network is an L1 blockchain built using Cosmos SDK and Tendermint Core specifically to serve order book infrastructure, on which high-performance DeFi products can be built. In August 2022, it completed a US$5 million financing led by Multicoin Capital. .
On November 15, Circle announced a strategic investment in Sei Network to support the network’s launch of native USDC. Subsequently, the price of its native token, SEI, briefly exceeded $0.29, with a 24-hour increase of 32.96%. On November 29, Sei Network released its V2 strategic plan to create the first parallel EVM. After the review is completed, the upgrade will be released in the public testnet in the first quarter of 2024 and deployed to the mainnet in the first half of 2024.
Its native token is SEI with a price of $0.24, an increase of 91.4% on the 30th.
Fetch.ai
The AI+Crypto concept has received a lot of attention this year. Fetch.ai is an AI application chain built based on Cosmos-SDK. Its vision is to build a decentralized intelligent world and realize intelligent self-organization and intelligence through blockchain technology and artificial intelligence algorithms. Contracts, smart agents and other functions.
Fetch.ai has its own AI agent framework and algorithm, which can be applied in different fields and scenarios. Currently, Fetch.ai has built a series of ecological applications based on its own AI technology, mainly including Resonate (Social+AI Feed), MOBIX (Move to Earn), and Atomix (Defi protocol).
Its native token is FET, and its current price is $0.51, up 2.20% in 24 hours.
