Cosmos Hub’s low barrier to becoming a validator could have these effects
According to new data shared by Polkadot Insider, Cosmos Hub has the lowest cost threshold required to become a validator. This, because it only takes 1 ATOM to become a validator on the network – Worth $10.87 at press time.
Read Atom’s Price Prediction 2023-2024
Even though this requirement lowers the barrier to entry for becoming a validator, it comes with a set of problems as well. Due to the low cost of becoming a validator on the Cosmos network, many ATOM holders are able to have a say in the governance of Cosmos.
A high number of users participating in governance can cause delays in passing proposals. Additionally, due to the high number of stakers voting on Cosmos governance, a discrepancy between stakers and developers on various issues has been fueled too.
Despite the low costs of becoming a validator on the Cosmos network, the number of stakers on the network have continued to decline.
In fact, according to data shared by Staking Rewards, the number of stakers on Cosmos Hub’s network fell by 11.03% over the past month.
Source: Staking Rewards
Cosmos Hub’s token ATOM hasn’t been doing too well either.
According to Dune Analytics’ data, the number of ATOM transactions on L2 networks such as Arbitrum, Polygon, and Optimism has declined significantly of late.
Source: Dune Analytics
Due to the decline in the number of transactions of ATOM, the overall volume of the token fell too. Additionally, based on Santiment’s data, ATOM’s volume fell from $302 million to $134 million within the span of 1 month.
Even though interest in ATOM has been declining, it could be regenerated by new additions to the Cosmos Hub network. Over the past few days, development activity on Cosmos Hub has increased, indicating that there may be new
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