Tokens that remain strong amid the downturn: Cosmos ecosystem rises against the trend, gaming and L2s perform well
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Tokens that remain strong amid the downturn: Cosmos ecosystem rises against the trend, gaming and L2s perform well
By referencing these rapidly rebounding tokens, investors can gain better insight into market trends and inform their decision-making.
Navigating Web3 tides with focused insightsWritten by: TechFlow
High volatility is normal during bull markets. Behind every market pullback, certain tokens tend to stand out and lead subsequent rallies, often driving their entire sectors upward. Tracking these rapidly rebounding tokens can help investors better identify market trends and inform investment decisions.
On December 11, BTC experienced a sharp correction with a 5.8% drop. Which tokens quickly recovered from the downturn caused by this BTC selloff? This article will list those tokens, examine their key backers, and explore potential catalysts behind their performance.
Cosmos Ecosystem
Injective (INJ)
Injective ($INJ) is a blockchain built using the Cosmos SDK, offering modules such as decentralized order books that enable developers to build DeFi applications, including decentralized spot and derivatives exchanges, prediction markets, and lending protocols.
Currently, INJ has a market cap of approximately $2.23 billion.
As shown in the chart, INJ was barely affected by the BTC correction, forming only a short lower wick before resuming its strong uptrend, already surpassing its previous all-time high.
Potential Catalysts:
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Avalon mainnet upgrade bringing higher scalability, faster block times, and improved trading experience.
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Broad rally across the Cosmos ecosystem.
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Token launch of Talis, an NFT marketplace built on Injective, offering airdrop rewards for staking INJ.
Funding History:
The most recent funding round occurred on August 10, 2022, raising $40 million led by Jump Crypto.
Celestia (TIA)
Celestia enables next-generation scalable blockchain architecture—modular blockchains. Celestia scales by decoupling execution from consensus and introducing data availability sampling as a new primitive.
TIA, the native token of Celestia, plays a crucial role for developers building the first modular blockchain network. Rollup developers must submit PayForBlobs transactions on the network to access data availability services, paying fees denominated in TIA.
Currently, TIA has a market cap of approximately $1.766 billion.
As seen in the chart, TIA quickly rebounded after the BTC correction and has since broken through to new all-time highs.
Potential Catalysts:
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Listings on major exchanges;
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Broad rally across the Cosmos ecosystem;
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Growing interest in modular blockchain architecture.
Funding History:
On October 20, 2022, Celestia raised $55 million in a Series A round at a $1 billion valuation, led by Bain Capital Crypto and Polychain Capital.
Neutron (NTRN)
Neutron is a permissionless smart contract platform built using the Cosmos SDK. Developers can deploy applications once and scale across the entire IBC network of interconnected blockchains without needing to maintain multiple custom versions of their protocol.
Neutron brings cross-chain security sharing to Cosmos, allowing other chains to benefit from Cosmos-level PoS node security.
Currently, NTRN has a market cap of approximately $206 million.
As shown in the chart, NTRN absorbed the pressure from the BTC correction gradually but has since reached new all-time highs, though its momentum is slightly weaker compared to TIA.
Potential Catalysts:
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Strong investor lineup;
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Broad rally across the Cosmos ecosystem;
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Incubated by the core team behind Lido.
Funding History:
On June 21, 2023, Neutron raised $10 million in a funding round led by Binance Labs and CoinFund, with participation from Delphi Ventures, LongHash Ventures, Semantic Ventures, and Nomad Capital.
Osmosis (OSMO)
Osmosis is an AMM application-specific chain built with the Cosmos SDK, allowing developers to create customized AMM liquidity pools using sovereign liquidity. $OSMO is the governance token of Osmosis, enabling holders to vote on protocol development.
Currently, Osmosis has a market cap of approximately $446 million.
As seen in the chart, OSMO remained strong despite BTC’s correction, recovering losses and continuing its uptrend with a 7-day gain of 27.11%.
Potential Catalysts:
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Broad rally across the Cosmos ecosystem;
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Largest DEX on the Cosmos ecosystem, benefiting from leader effects.
Funding History:
On October 28, 2021, Osmosis raised $21 million in a funding round led by Paradigm Ventures.
Kuji
Kujira is a decentralized Layer 1 ecosystem built using the Cosmos SDK, focused on developing sustainable fintech solutions and tools. Its expanding DeFi product suite includes:
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Liquidity engine
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DEX
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Money market
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Liquidations
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Stablecoin
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On-chain order book
The KUJI token is used for network and dApp fees, with fees and rewards distributed to KUJI stakers.
Currently, Kuji has a market cap of approximately $540 million.
As shown in the chart, although Kuji was affected by the BTC correction, the decline was limited, and it quickly rebounded to near its all-time high.
Potential Catalysts:
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TVL grew by 50% in one month, with no signs of slowing down;
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Broad rally across the Cosmos ecosystem;
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Full token circulation;
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Rise of RWA (Real World Assets).
Gaming
Big Time
Big Time is a multiplayer action RPG developed by Big Time Studios for PC. It combines fast-paced combat with an open game economy where players can create and trade in-game items.
Currently, Big Time has a circulating market cap of $104 million.
As seen in the chart, Big Time was indeed impacted by the BTC correction on December 11, briefly dropping low ("wicked down") but quickly recovering and now consolidating near its all-time high.
Potential Catalysts:
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Recent surge in attention toward gaming sector, with Big Time being a newly launched game;
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Reduced token emission rate;
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Anticipated listing on Binance Spot.
Funding History:
On May 12, 2021, Big Time Studios raised $10.3 million in a Series A round, with investors including North Island Ventures, Digital Currency Group, Blockdream Ventures, Alameda Research, Circle, and Sound Ventures.
Immutable X (IMX)
Immutable X is the first Ethereum Layer-2 scaling solution dedicated to NFTs and blockchain gaming. Leveraging zk-rollups, Immutable X aims to solve the issues of high gas fees and scalability when minting and trading NFTs.
Currently, Immutable X has a market cap of $2.825 billion.
As shown in the chart, although IMX was significantly impacted by the BTC correction, it quickly recovered and is currently in a steady uptrend.
Potential Catalysts:
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Blockchain gaming infrastructure aligned with industry-wide demand;
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Renewed market interest in gaming sector;
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Potential Starknet airdrop (IMX uses its technology);
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Impressive investor lineup.
Funding History:
On March 7, 2022, Immutable raised $200 million at a $2.5 billion valuation, led by Temasek, with participation from Mirae Asset, ParaFi Capital, Declaration Partners, and Tencent Holdings.
AI
RNDR
Render Network is a decentralized GPU rendering solution that connects users who need rendering power with individuals who have idle GPUs. GPU owners connect their hardware to the Render Network to receive and complete rendering jobs using OctaneRender. Users send RNDR tokens to those performing the work, while OTOY receives a small portion to support network operations.
Currently, RNDR has a market cap of $1.468 billion.
As seen in the chart, RNDR recovered from BTC-driven losses and surged upward, recently pulling back to find direction, with a 7-day gain of 9.89%.
Potential Catalysts:
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Ongoing hype around AI narratives;
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Strategic partnership between RNDR’s parent company and Apple—Render Network provides Apple with high-performance GPU computing, enhancing efficiency in AR content rendering and processing.
Funding History:
On December 21, 2021, Render raised $30 million in a strategic funding round.
Layer 2 Ecosystem
OP
Optimism is an Ethereum Layer 2 solution utilizing optimistic rollup technology, significantly reducing transaction costs and time while maintaining Ethereum's security benefits.
Currently, OP has a circulating market cap of $2.155 billion.
As shown in the chart, the BTC correction actually fueled OP’s momentum. It has performed exceptionally well recently, gaining 32.96% over the past seven days. After a long dormancy in the L2 space, OP may be signaling the beginning of a broader L2 resurgence.
Potential Catalysts:
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ETH ecosystem underperformed during this mini-bull run and could regain focus;
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Cancun upgrade.
Funding History:
On March 18, 2022, Optimism raised $150 million in a Series B round at a $1.65 billion valuation, co-led by a16z and Paradigm.
Synthetix (SNX)
Synthetix is a decentralized synthetic asset platform offering on-chain exposure to real-world currencies, commodities, stocks, and indices. These synthetic assets (Synths) are backed by SNX tokens locked as collateral in smart contracts. Synths track the prices of various assets, enabling crypto-native and unbanked users to engage in P2C (peer-to-contract) trading on the Synthetix exchange without liquidity constraints.
Synthetix V3 has been deployed on both Optimism and Ethereum.
Currently, SNX has a market cap of $1.424 billion.
As shown in the chart, after being impacted by the BTC correction, SNX quickly rebounded and continued making new highs in the following days, demonstrating strong momentum.
Potential Catalysts:
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Improved economic model reducing inflation to zero;
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Buyback and burn mechanism for SNX;
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With Synthetix V3 deployed on OP, the arrival of "L2 Season" may bring significant benefits to Synthetix.
Funding History:
On March 20, 2023, market maker DWF Labs invested $20 million into Synthetix.
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