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Curious if anyone k knows why the APY% is dropping

on Cosmos? Is it because more ppl are staking?

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Yes!

Because of dynamic inflation model. Let me explain how it works; The inflation has a floor of 7% and a ceiling of 20%. The target percentage of total supply coins staked is 66%. The network uses an algorithm to maintain this level. When the staked percentage of total supply is above 66%, the inflation heads down to the floor of 7%. When the staked rate is below 66%, the inflation starts heading up toward the ceiling, of 20%. For now, the Total staked ratio is 70.50%, and inflation is 15.5% ! After reaching 66% , inflation started to decrease! And heading down to 7% block by block! You can explore Cosmos Hub blockchain data here; https://monitor.bronbro.io/d/cosmos-stats/cosmos-stats?orgId=2&refresh=5s  And Graph; https://monitor.bronbro.io/d/cosmos-graph/cosmos-stats-graph?orgId=2

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