EOS Price Weekly Analysis: EOS Bulls are Back?

EOS price has soared more than 35 percent this week, compared to other cryptos. Whereas Bitcoin has risen only 4 percent and Ethereum, the main competitor has posted 11 percent fall, as per CoinMarketCap. EOS, which is trading at $7.01 level, is one of the top 10 cryptocurrencies trading higher over the last 24 hours.

Use of EOS

EOS is like a decentralised operating system, and the developers can build applications on EOS with which the end users will easily interact with. Therefore, a developer requires EOS coins to use the EOS blockchain and have a claim on server resources. EOS’s main competitor is Ethereum, but EOS offers better adaptability which Ethereum cannot.

Block.one, developing EOS.IO software, will enable vertical and horizontal scaling of decentralized applications. EOS.IO software will be used for authentication, databases, accounts and asynchronous communication. It has the potential to increase millions of transactions per second, eliminates user fees and greater adoption of blockchain technology.

EOS Price Chart

EOS is trying to break its downtrend as it surged above $7 level after falling to $3 level in 2018. The first resistance is at around $12 level, which EOS can likely reach.

The regulators fear for the fall of the cryptocurrencies from the news that Japan Financial Services Agency, has issued a warning for Binance, which is the largest cryptocurrency exchange by volume, for operating in Japan without a license.

Reason for EOS Price to fall Initially

In an episode of HBO’s “Last Week Tonight,” talk show on March 11^th, the host John Oliver gave the warning about EOS to be “speculative mania” and highlighted the risks of investing in it. Around 5.98 million viewers saw this on YouTube.

Further, he raised concern about Block.one, which has raised $1.5 billion, not yet launched and even do not plan to sell any software like  established tech giants such as Facebook. As per CoinMarketCap, EOS plunged to a low of $3.95 one week later.

Reasons for EOS to surge in a week

Block.one, announced a $100 million joint venture with German fintech incubator FinLab AG to develop projects that use the EOS blockchain. Further, there is speculation of EOS to be listed on Upbit, which is one of the biggest cryptocurrency exchanges in South Korea. According to CryptoCompare, approximately, half of the trading volume of EOS comes from the South Korean platform Bithumb. In addition, the North American and Western traders follow the lead of South Korea’s volume.

Moreover, the cryptocurrency start-up Everipedia is also planning to distribute its coins to EOS holders, through the “airdrop” method. The method involves the owners of an existing cryptocurrency to receive a set amount of a new coin. This will lead to increased demand for EOS and therefore EOS price rose.

Meanwhile, former Fortress hedge-fund manager Michael Novogratz’s Galaxy Digital entered into a joint venture with EOS developer Block.one for a $325 million fund. In February, the fund invested $30 million in Everipedia.

Conclusion

The EOS platform is expected to go live this summer, which the investor believe will add value to EOS and may lead to EOS price rise beyond $12. However, EOS price recovered above $7 but it is still just over a third of its all-time high of $18.71.