EOS Price Back on the Defensive as New Alliance Emerges

EOS succumbed to fresh selling pressure on Tuesday, as bitcoin continued to eat away at the market share of altcoins following a minor corrective rally last week.

EOS Price Update

The EOS price fell 6.1% on Tuesday to $4.77, a new five-day low. With the decline, EOS was the worst performing cryptocurrency in the top ten with losses that more than tripled the broader market. EOS was down 5.7% against bitcoin, which now accounts for 53% of the entire market capitalization.

Twenty-four hour trade volumes were $432 million, according to CoinMarketCap, with OKEx and Binance processing the largest share of transactions.

EOS continues to hold fifth spot on the crypto market leader board with a total capitalization of $4.3 billion. However, Stellar Lumens is quickly rising in the rankings and now trails EOS by less than $300 million.

Despite the decline, EOS has rebounded from its most recent low and now sits with a gain of 9.5% over the past week. By comparison, the bitcoin price has gained 5.6% over the same period.

EOS: World’s #1 Blockchain, According to China

A widely read blockchain index developed by the Chinese government has once again named EOS the world’s top cryptocurrency. According to China’s Center for Information Industry Development (CCID), EOS edged out Ethereum for top spot in an index that prioritizes technology, application and innovation. In addition to topping the overall rankings, EOS finished first in the technology sub-index.

CCID’s rankings can be viewed as a vote of confidence for EOS’ developers, who have endured multiple controversies since botching their mainnet launch back in June. This came to a head when Daniel Larimer, EOS founder and visionary, confirmed he wants to scrap the platform’s constitution in favor of a new one.

“I have learned a lot about human nature by watching the disputes, the witch hunts, the ‘bring everything before the ECAF mindset,” he said, referring to the EOS Core Arbitration Forum.

The company’s arbitration body came under fire after EOS’ executives froze as many as seven public keys without consulting with ECAF.

Block.one, the company behind EOS, has proposed a constitution overhaul in the wake of Larimer’s comments. Version 2.0, as it has become known, would put an end to protocol-level arbitration orders, thereby relying on block producers to function as jury in any dispute.

Although there haven’t been any new updates on the revised constitution, a group of EOS developers last week banded together to create a new alliance for collaborative decision making. According to the official website, the Alliance will be independently funded and “will be held accountable to the community under the EOS Constitution.”

Additionally, “Its Board members shall be elected by the community (replacing the named interim board). Funding for the Alliance shall be a combination of donations and possible allocation from the EOS Membership.”

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi

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