Cosmos concluded September with an announcement which may set the tempo for an attention-grabbing future. The blockchain community plans to roll out USDC natively on its interchain platform.
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Native #USDC is coming to the Interchain in January 2023, leveraging @cosmoshub’s Interchain Safety!https://t.co/aurx2EQN3G pic.twitter.com/FGgoWQa5ZD— Cosmos – Web of Blockchains ⚛️ (@cosmos) September 29, 2022
Cosmos revealed that the event was a part of its plan to develop the Interchain ecosystem. Based on the replace, the USDC rollout natively on the Interchain will benefit from Interchain Safety.
Cosmos additional acknowledged that it expects the rollout to facilitate a better switch of worth inside its interconnected ecosystem.
As per the announcement, working USDC natively on Interchain will allow dapps to function extra effectively. The community additionally expects the stablecoin rollout to drive migration into Interchain and facilitate favorable liquidity circulation.
This may translate to extra utility and demand for the community and for the ATOM cryptocurrency.
A nudge for ATOM bulls?
USDC’s native rollout on Cosmos might yield a optimistic long-term impression on ATOM. Moreover, it might even have a short-term optimistic impression contemplating ATOM’s present place and that 2023 is only a few weeks away.
At press time, ATOM was buying and selling at $13.0 and was down by 0.12% within the final 24 hours.
Nonetheless, the chart from 30 September confirmed that ATOM was inside an ascending worth channel since mid-June and it simply retested its present help.
Supply: TradingViewCo
Moreover, ATOM’s $13.09 worth on 30 September additionally indicated that traders have been accumulating after the help retest. There have been extra components that pointed in direction of an upside forward as a part of its aid rally.
Such an end result could possibly be thought-about extremely possible after ATOM’s bearish efficiency within the final two weeks.
Moreover, quite a few on-chain metrics supported the bullish outlook as Q3 got here to an finish. ATOM’s weighted sentiment metric registered a pointy uptick from 26 September to its highest month-to-month stage on 30 September.
Supply: Santiment
The weighted sentiment confirmed that almost all traders have been bullish on ATOM’s worth motion after the help retest.
Social quantity was already catching on given the above observations, in addition to the USDC announcement.
Supply: Santiment
Cosmos’ social quantity metric recorded a pointy uptick on 26 June, the identical day that the weighted sentiment pivoted. The amount metric maintained elevated exercise between 27 September and 30 September. These components collectively demonstrated optimistic adjustments in ATOM’s on-chain demand.
It’s at present unclear how large of a restoration rally ATOM will obtain after the help retest. A robust rally would require sturdy demand not simply from the spot market but in addition from the derivatives market.
Luckily, the present circumstances within the derivatives market align with the beforehand talked about observations.
Supply: Santiment
Notably, ATOM’s Binance and FTX funding charges each dropped from their four-week highs within the second week of September. They retested their decrease month-to-month vary earlier this week however have each pivoted since then. This end result confirmed demand restoration within the derivatives market.
The above mixture of things elevated the percentages of a bullish restoration particularly if the bullish volumes comply with via. Nonetheless, traders ought to maintain watch on the general market outlook within the first week of October.
Sudden market occasions might set off a adverse end result, inflicting one other sentiment shift in favor of the bears.