Key Projects in the Cosmos Ecosystem: An Overview

*Forward the Original Title：Ecosystem Development: Ethereum Leads, with Neither Bitcoin Nor Solana Ranking the 2nd

Beyond the Ethereum ecosystem, which ecosystem do you think is the most powerful one?

According to CoinGecko, among the top 100 projects by market cap, projects within the Ethereum ecosystem account for 25 (including Layer 2 and related ecosystems), Cosmos ecosystem has 12, Bitcoin ecosystem has 4. In addition to BNB, there are only 2 stablecoins in the BSC ecosystem, and none in the Solana ecosystem.

For those who haven’t paid attention, the Cosmos ecosystem has been consistently dominating. Several discussed projects in the community, such as Celestia, Injective, and Sei, all come from the Cosmos ecosystem. Quality projects clustering in an ecosystem is worth our attention and exploration. Today, let’s break down the Cosmos ecosystem in plain language.

Why Projects Choose Cosmos?

The choice of Cosmos as the platform for projects is a recurring topic. Dydx’s move to the Cosmos ecosystem has been discussed before. We will make a brief overview:

Performance: Cosmos chain is designed to enhance scalability and throughput, handling more transactions with faster confirmation times compared to other blockchains.

Interoperability: The Cosmos ecosystem employs a multi-chain architecture, allowing multiple independent blockchains to coexist and interact with each other. This means applications can run on their own independent chains without being affected by activities on other chains.

Autonomy: Cosmos chain adopts a modular design, enabling developers to choose and combine different modules to build their application chains. This flexibility allows developers to customize and extend easily, providing greater autonomy and flexibility based on specific needs. Developers can design and manage their chains according to the requirements of their applications.

Choosing the Cosmos chain for projects offers better performance, autonomy, flexibility, and independence. These advantages enable developers to construct application chains more effectively. For further insights into the benefits of choosing the Cosmos chain, refer to the previous article “Attracting Ethereum’s Layer 2 Leader and Others, Why Choose Cosmos?“

However, despite these advantages, the issue of capturing value within Cosmos itself has always been a concern. While ecosystem projects are thriving, their impact on Cosmos itself is relatively small.

Launched Projects in the Cosmos Ecosystem

In our exploration of the Cosmos ecosystem, we’ll introduce projects in two parts – those already live on trading platforms and those yet to release tokens. In this section, let’s dive into the first part:

• Injective

Injective, initially positioned as a derivatives project on Cosmos, evolved into a DeFi and derivatives Layer 1 solution through iterative development. Offering plug-and-play modules like order books and derivatives trading, Injective facilitates easy initiation of financial applications for developers.

Additionally, it features smart contract capabilities empowering developers to build sophisticated applications. The unexpected strong performance of Injective last year propelled its market cap to rank 35th, making it a notable competitor to dydx. However, its ecosystem and derivatives data performance have been relatively modest, with most positive aspects revolving around collaborations between institutions and market makers.

• Celestia

Celestia, as the first modular blockchain network project, focuses on Data Availability (DA) by separating core blockchain functions, thereby enhancing scalability. Upon its initial launch, discussions within the industry were widespread regarding modular blockchain concepts. Recently, following the introduction of its token, Celestia’s market cap soared to 38th, showcasing an impressive performance. This resurgence has reignited discussions around DA, with notable figures such as Vitalik Buterin even sharing thoughts on DA through multiple tweets. EigenLayer has also ventured into EigenDA, highlighting the potential threat Celestia’s DA poses to Ethereum. This elevated interest is evident in the community.

Celestia emphasizes a data availability network and boasts a 99.9% reduction in data costs compared to Ethereum’s DA layer. However, despite its high valuation, Celestia’s current data utilization stands at a mere 0.1%, indicating a minuscule market share and weak profitability. On the other hand, while current usage fees are low, as the network expands, users might find themselves engaged in bidding wars, leading to increased fees with a growing user base.

• Cronos

Cronos, developed by Crypto.com, is an EVM (Ethereum Virtual Machine) compatible chain built on Cosmos SDK technology. It allows the porting of applications and cryptographic assets from other chains, offering high throughput and low transaction fees. The relationship between Cronos and Crypto.com is similar to that of BSC and BA. Token CRO token can be considered as the utility token for Crypto.com. Currently, the market capitalization of CRO is around 46th.

• Sei Network

Sei Network is a public chain built on the Cosmos SDK and Tendermint core, specializing in the field of cryptocurrency asset trading. It features an integrated Central Limit Order Book (CLOB) module, allowing other Cosmos-based blockchains to utilize Sei’s CLOB as a shared liquidity center, creating markets for various assets.

Recently, Sei Network gained significant attention by introducing the concept of “Parallel EVM,” with some top institutions even proclaiming 2024 as the “Year of Parallel EVM.” Currently ranked around 49th in market cap, Sei Network experienced a pivotal shift in its price trajectory following Circle’s strategic investment announcement on November 15 of the previous year. Circle declared its support for the native USDC launch on the Sei Network, marking a crucial turning point for Sei’s price dynamics.

For your reference, Parallel EVM is an improved technology aimed at enhancing the performance and efficiency of the Ethereum Virtual Machine (EVM). Traditional EVM processes transactions sequentially, handling only one transaction at a time, leading to slower processing speeds. Parallel EVM allows multiple transactions to be processed simultaneously, thereby improving overall processing capabilities. The goal is to enhance blockchain scalability and performance to address higher transaction loads and achieve faster transaction confirmations.

• THORChain

THORChain is a cross-chain decentralized exchange (DEX) protocol within the Cosmos ecosystem. During the last bull market, it suffered substantial losses, influenced by the collapse of Luna and issues with code vulnerabilities, resulting in millions of dollars in losses. In the current bear market, THORChain languished in a semi-dormant state. However, with the rise of the Bitcoin ecosystem, THORChain, as an early supporter of native BTC cross-chain transactions, has experienced a resurgence in this wave. Trading volumes have surged, and its current market cap ranks around 56th.

• Dymension

Dymension is a modular settlement layer based on the Cosmos ecosystem. It aims to address the fragmentation between Layer 2 solutions, providing a unified way to build and manage Rollups. Introducing the concept of “enshrined rollups,” Dymension standardizes different Layer 2 solutions and offers liquidity integration, simplifying and enhancing interactions between Rollup applications.

Dymension’s goal is to reduce the complexity of developing and deploying Rollup applications while providing improved interoperability and shared security. Recently, it gained attention by airdropping to a total of 520,000 addresses across ecosystems such as Celestia, Ethereum, and Cosmos, generating significant interest. Currently, it is listed and trading on a certain exchange, with a market cap ranking around 80th.

• Manta Network

Manta Network originally started as a privacy protocol for DeFi on Polkadot but later shifted its focus to become an Ethereum Layer 2 public chain utilizing Celestia’s modular technology. It is dedicated to providing modular blockchain support for zero-knowledge proof (ZK) applications. Recently, with the launch of liquidity staking events like Blast by Blur causing TVL to surge, Manta Network introduced a similar event called New Paradigm, attracting significant capital inflow. Currently boasting a TVL of $1.7 billion, its Layer 2 TVL ranking has rapidly risen to third place. Following its recent listing on Binance, Manta Network has demonstrated favorable price performance, currently ranking around 97th in terms of market capitalization.

• dYdX

As the first decentralized derivatives trading platform, dYdX initially gained substantial attention but has faced challenges in recent years. Originally built on Ethereum, the platform encountered issues with rising gas costs due to the DeFi boom, impacting user trading experiences. In April 2021, dYdX began migrating to the more scalable Ethereum Layer 2 Starkware platform. In June 2022, dYdX plans to migrate its V4 to the Cosmos network, creating its independent L1 blockchain called dYdX Chain with a fully decentralized off-chain order book and matching engine. Currently, it ranks around 91st in market capitalization.

• Osmosis

Osmosis is a prominent DEX in the Cosmos ecosystem, focusing on providing cross-chain trading services. On Osmosis, users can engage in token trading and swaps across different Cosmos blockchains. There are currently 62 chains connected via IBC to the Cosmos ecosystem, with Osmosis having the highest number of connections at 59. Presently, Osmosis ranks around 81st in market capitalization, and it is integrated into the Keplr Cosmos wallet, offering a built-in swap feature.

• Kava

Kava, established in 2017 as a cross-chain payment project, later pivoted towards the DeFi sector amid the DeFi boom. In 2022, Kava transformed into the Cosmos-Ethereum interoperable public chain, Kava Chain, based on the Ethereum Virtual Machine (EVM). With substantial collaborations between Kava and its partners, the tokenomics was updated earlier this year, and starting from January 1, 2024, Kava Token will cease inflation. Presently, it ranks around 83rd in terms of market capitalization.

• ZetaChain

ZetaChain is the first Layer1 with built-in cross-chain interoperability, compatible with EVM, and possesses the capability to connect all blockchains, including non-smart contract chains such as Bitcoin and Dogecoin. With ZetaChain’s comprehensive toolkit, developers can build truly Omnichain decentralized applications (DApps) without the need for dispersed development across different blockchains.

ZetaChain provides a convenient way to connect and manage multiple blockchains, offering users a more seamless cross-chain interaction experience. The goal of ZetaChain is to establish blockchain interoperability standards, enabling users to manage all assets and data on-chain from a single platform without the need for bridging or token wrapping. Currently valued around 85th in market capitalization.

• Fetch.ai

Last year, the skyrocketing popularity of ChatGPT ignited the AI landscape in the blockchain industry. In the absence of other projects incorporating AI concepts, both Fetch.ai and SingularityNET emerged as pioneers and experienced a surge. The recent release of Sora once again brought attention to the AI race, and Nvidia’s financial report added fuel to the AI sector. This has led to favorable performances for Fetch.ai and SingularityNET. Additionally, BN has been consistently investing in the AI sector, with several recently launched projects related to AI. It can be said that the AI sector in the crypto space is gradually becoming one of the mainstream concepts, akin to the metaverse.

Fetch.ai is an AI application chain built on the Cosmos-SDK. Its vision is to create a decentralized intelligent world, achieving functions such as intelligent self-organization, smart contracts, and intelligent agents through blockchain technology and AI algorithms. Currently, Fetch.ai has developed a series of ecosystem applications based on its own AI technology, including Resonate (social + AI feed), MOBIX (Move to Earn), Atomix (DeFi protocol), among others. Its current market valuation is around 73rd.

• Neutron

Neutron is a permissionless smart contract platform built using the Cosmos SDK. It aims to facilitate the deployment of smart contracts and DApps on the Cosmos Hub, streamlining settlement coordination, data availability, and execution. Incubated by the Lido core team, Neutron collaborated with Lido in September last year to launch liquidity staking for Ethereum wstETH on Cosmos. It has shown promising performance since its integration with BN, currently ranking around 151st in market capitalization.

• Axelar

Axelar is dedicated to providing secure cross-chain communication for web3, enabling interoperability between different blockchain platforms. Axelar utilizes smart contracts to manage and execute rules and logic for cross-chain interactions, offering automated processing for complex cross-chain transactions while ensuring consistency and predictability. Currently, Axelar has connected to over 50 chains, including Ethereum, Polygon, Avalanche, Arbitrum, and many other mainstream chains, as well as various Cosmos-based chains, establishing itself as a leader in the field of cross-chain interoperability.

• Secret Network

Secret Network is a privacy-focused public chain built on the Cosmos SDK. Collaborating with NEAR Protocol, Secret Network plans to achieve cross-chain interaction with NEAR in the first quarter of this year.

• Stride

Stride is a staking protocol on Cosmos, aiming to bring liquidity-staking market share to the Cosmos ecosystem. Currently, it holds the largest market share in the Cosmos LSD track.

It is evident that there are numerous high-quality projects within the Cosmos ecosystem, and many of them have generated considerable discussion and interest within a certain timeframe.

Unlaunched Projects

For investors, the most efficient way to assess the worthiness of a project is to consider its funding status, involvement of top-tier institutions, and whether team members have experience in reputable projects. Here, we introduce a few highly anticipated projects.

• Berachain

Berachain, originating from the NFT project Bong Bears, has transformed into a high-performance EVM-compatible chain utilizing the Proof-of-Liquidity (PoL) consensus mechanism. Addressing a common issue in current Layer1 networks, the team established Berachain to enhance the network’s incentive mechanism by strengthening collaboration between Berachain validators and the project ecosystem.

In April 2023, Berachain secured $42 million in funding with a valuation of $420 million, led by Polychain Capital, with participation from OKX Ventures, Celestia founder, and others. This indicates robust project resources and background strength. On January 11, the official announcement of the public testnet launch attracted over 1 million testnet users and more than 70 ecosystem DApps in just over ten days.

• Saga

Saga is a modular blockchain project providing developers with tools and services to build dedicated chains for the metaverse. The project aims to lower the barriers to blockchain development, allowing developers to easily construct their own dedicated Web3 application chains. Saga focuses on offering a simplified blockchain deployment and management solution for applications in the diverse metaverse, emphasizing interoperability, with a particular focus on the gaming and metaverse sectors.

Team members have experience from projects such as Skuchain and Tendermint. After two funding rounds, Saga raised $13.5 million with a valuation of over $100 million. In early January, the official airdrop standards were released.

• TABI

TABI is a gaming chain on Cosmos, providing various functions including NFT trading, issuance platforms, and gaming platforms. Additionally, TABI converts user activities on the chain into experience points for future rewards. The testnet went live in February this year.

TABI completed two funding rounds, raising a total of $11 million. Animoca Brands led the investment, with participation from Binance Labs, Draper Dragon, and other institutions.

• Initia

Initia is a Move Layer1 on Cosmos, dedicated to building a highly interconnected modular Rollup network. Its architecture comprises Layer 1 (L1), Layer 2 (L2), and communication layers, enabling developers to effortlessly launch application-specific blockchains based on Initia L2 without the need to understand complex chain-level infrastructure or run validator sets.

Additionally, Initia leverages Optimistic Rollups as a specific L2 solution. By integrating L1, L2, and communication layers, it achieves seamless messaging and bridging between different virtual machines (such as EVM, WasmVM, and MoveVM). This positions it as the first MoveVM computation framework compatible with the Cosmos IBC protocol, facilitating seamless interaction with other blockchain networks within the Cosmos ecosystem.

In October of the previous year, Initia received investment from Binance Labs, with the specific amount undisclosed.

Conclusion

In this article, we provide a comprehensive introduction to projects within the Cosmos ecosystem. Do you have a positive outlook on the future development of the Cosmos ecosystem? If there are any other high-quality projects that are not covered here, feel free to comment and contribute.

Disclaimer：

1. This article is reprinted from [白话区块链], forward the original title “Ecosystem Development: Ethereum Leads, with Neither Bitcoin Nor Solana Ranking the 2nd”. All copyrights belong to the original author [Day]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
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