CosmicValidator
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CosmicValidator

Cosmic Validator Overview 2021

First of all, we would like to wish all of our frens an amazing year 2022 and a warm and happy Christmas holidays. 2021 has been a great year for Cosmic Validator overall and we are very happy to share our key highlights of the year as well as those of the crypto industry and the Cosmos ecosystem.

Cosmic Validator has positioned itself among the leading multi-chain Cosmos validators attracting new Cosmos ecosystem projects and receiving requests to help bootstrap new networks.

With the upcoming Interchain Security model in the Cosmos ecosystem coming in 2022, validators focused on the Cosmos ecosystem and validating in the best Cosmos projects will differentiate themselves from other validators. With the shared security design, delegators in the Cosmos hub will earn rewards from all the Cosmos networks a validator is securing, therefore multi-chain validators like us will provide the most value to delegators.

Moreover, it is mentioned that with shared security validators will have a role of curating, filtering and selecting new projects in the Cosmos ecosystem. We at Cosmic Validator have been doing this curation since the beginning and we are proud to say that we are validating in the most successful, with the highest liquidity and the best overall Cosmos projects. This was achieved through an in-depth due diligence process before joining any new network.

As a multi-chain Cosmos validator, we are currently securing the following networks:

Cosmos hub, Sentinel, Persistence, E-money, Akash, Ki, Terra, Juno, Osmosis, Ixo, Comdex

Also, outside of the Cosmos ecosystem we joined some networks within the Polkadot ecosystem like Kusama or Polkadex.

For 2022, we are aiming to join additional leading Cosmos projects like Agoric, where we joined the waitlist for their testnets, Evmos, Gravity Bridge, Tgrade and others. In particular, we are extremely proud of the progress of our partners OmniFlix Network and are looking forward to join their network as a validator as well.

In 2021 we also launched our new website which was warmly welcomed and received lots of positive feedback. Moreover, we aligned with the projects we validate and launched the new website hosted on Akash which was highly appreciated by Akash founders. In addition, we became the top #2 validator in Sentinel and have remained in that position throughout the year.

Since the beginning Cosmic Validator has been bootstrapping, independent and without any external investors. Following the huge success in 2021, we are planning to expand our team in 2022 with new hirings and we will announce plenty of new projects and surprises. To accelerate this growth we are considering fundraising so stay tuned for further news very soon!

Overview 2021 — Crypto industry/Cosmos ecosystem

The combination of hardware wallet ledger, with Keplr and Osmosis has been a key highlight of 2021. Trading Cosmos ecosystem tokens has become a seamless and secure experience, simply connecting your ledger to Osmosis via Kelpr. The volume and available assets in Osmosis keeps growing and the addition of stablecoins such as UST is quickly positioning Osmosis at the center of DeFi. Many Cosmos ecosystem tokens had almost no trading volume (both in CEXs or DEXs) before the launch of Osmosis, and thanks to Osmosis they now have considerable liquidity and price discovery. Moreover, new projects launching in Cosmos benefit from Osmosis to bootstrap the initial liquidity. It seems the broad crypto industry is hugely overlooking Osmosis and in 2022 Osmosis could become among the largest if not the biggest DEX in crypto.

The launch of Cosmos IBC was a major breakthrough of 2021 and more and more networks are upgrading to IBC to benefit for example with the access to Osmosis and other Cosmos DEXs. While other projects like Polkadot seem to criticize Cosmos for their lack of shared security, this will actually come to the Cosmos ecosystem in 2022 and could even be superior than the upcoming full launch of Ethereum 2.0.

Interchain security and bridges will be a major development in 2022. While 2021 saw important progress and development, 2022 seems that it will be the year of bridges and interchain security, especially within the Cosmos ecosystem. Multi-chain validators in Cosmos securing the best projects will attract more delegations by offering the most value to delegators and acting as curators for the best projects. Once bridges from Cosmos to Ethereum are ready, it will be possible to trade in Osmosis as well erc-20 tokens and therefore the trading volume and liquidity will increase immensely. The volume will further increase once bridges are also ready to Bitcoin, Solana, Polkadot and other major blockchains and ecosystems.

Another major highlight of 2021 has been the huge ‘hidden value’ of ATOM. Basically, throughout 2021 multiple snapshots were taken for airdrops to atom holders. This showed the importance of having atom tokens in your own wallet and not in exchanges to be eligible for the airdrops, as well as the value of staking, participating in governance and other tasks that increased the amount of the airdrops. While many of these airdrops to atom holders had a reasonable value, the highlights were the Osmosis/Ion and Juno airdrops. These airdrops were huge in value and offered additional rewards via high initial inflation staking and LPing pools in Osmosis. While in 2021 the atom price didn’t increase too much compared to other tokens, taking into account the value of the many airdrops received and the compounding from staking/LPing actually the value of atom should be much higher, so once most investors realize this in 2022 the atom price should increase significantly.

Another major development in 2021 has been Luna/UST. The Luna price has raised massively to over $100 bringing Luna to the top 10 tokens by marketcap. Moreover, UST became in 2021 the largest decentralised stablecoin beating even Dai and getting close to $10 billion. In addition, both Luna and UST are interconnected since more demand for UST means less supply of Luna and therefore higher Luna price. Terra implemented IBC as well with the Columbus-5 upgrade and raised staking rewards to close to 10%. In 2022, UST could become the largest stablecoin beating both USDC and even USDT and Luna could raise to the top 5 tokens by marketcap. This will definitely be very positive for the Cosmos ecosystem and DEXs like Osmosis. As this article is being written, it was announced that now Binance has listed UST and Terra has become the second largest DeFi ecosystem by TVL just below Ethereum at $20 billion TVL, above Binance Smart Chain.

In 2021, crypto prices reached ATHs and there was important progress as well for Bitcoin with a soft fork upgrade and Ethereum getting closer to the full switch to PoS with Ethereum 2.0. This year the first Bitcoin ETFs were finally approved, however only futures with spot ETFs being repeatedly rejected. Another major highlight was that Bitcoin became legal tender in the first country of El Salvador, a country which has become a major supporter of bitcoin and crypto.

Regarding the bitcoin hashrate and the mining industry, following the crackdown of China from May 2021, the hashrate shifted to other regions such as the US and within months it had recovered and the outcome was that the major mining country became the US and China lost most of its hashrate. This showed that the policies of a country against crypto and bitcoin are irrelevant since it is a global network and can quickly shift focus from one country to another.

Another major development of 2021 was large corporations deciding to invest part of their treasuries in bitcoin, notably MicroStrategy, Tesla or Square. Saylor has been supporting bitcoin throughout the year and Musk as well, although he also criticized the carbon footprint of bitcoin and he expects more renewable energies. In 2022, it is likely that more large corporations will decide to invest in bitcoin, especially in the current high inflation environment.

Other projects that had important developments in 2021 were Solana and Polkadot. Solana became a top 5 token by marketcap and received important support from FTX and other key industry players. In the Polkadot ecosystem, Kusama auctions started first and then parachain auctions also inaugurated in Polkadot. 2022 will be a very exciting year seeing all these great ecosystems such as Cosmos/Terra, Ethereum, Solana, Polkadot and Bitcoin connecting to each other via bridges.

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