EOS Recovery Gathers Pace as Market Cap Returns Above $4 Billion
EOS’ price was in recovery mode on Wednesday, as the seventh-largest cryptocurrency gained against the dollar and bitcoin amid a wider market slump.
EOS Price Update
The EOS price price peaked at $4.41, having gained nearly 8% over the 24-hour trading cycle. It was last seen trading at $4.40 for a total market capitalization of around $4.1 billion.
The Enterprise Operating System is up nearly 16% from last week’s swing low. Its market cap has rebounded by around $600 million over that period. Since peaking in May, EOS is down by nearly half.
For the EOS bulls, the next target is $4.50, a region that previously acted as a fairly strong support.
EOS was the best-performing cryptocurrency on Wednesday. It was up 9.1% against bitcoin, with the EOS/BTC exchange rate hitting 0.00044765.
More than $2.1 billion worth of EOS reportedly changed hands in the last 24 hours, according to CoinMarketCap. OKEx, Huobi and Bit-Z were some of the largest markets for EOS trades.
Has EOS Overcome Bearish Sentiment?
EOS’ performance over the past six weeks is hardly unique. Like other strong performers in the altcoin sphere, EOS is unwinding from a parabolic rally that saw prices more than triple in less than five months. While it’s easy to turn bearish from a technical standpoint, the Enterprise Operating System is up more than 70% year-to-date.
However, for fundamental investors, there’s a strong reason to be concerned about EOS. Last month, a new report from hacker group AnChain.AI suggested that the vast majority of the blockchain’s decentralized applications were driven by malicious bots.
The study showed that 75% of total transactions originated from non-human accounts. More than half (51%) of new accounts were in fact created by bots.
As FXStreet noted, the “study questions the integrity of the existing data supporting EOS…”
EOS is one of the top-three dapp platforms based on users and volume. As of July 24, six of the top-ten decentralized applications by were on EOS, according to dappradar.com. Gambling and games were the two categories with the largest share of the activity.
EOS has also seen some backlash over its apparent centralization. Weiss Ratings drew attention to the centralization problem in June when it released its latest cryptocurrency rankings.
Weiss says Block.one, the parent company of EOS, failed to address these concerns at its latest industry conference in Washington, D.C. It was there that Block.one announced its intent to launch a new blockchain-based social media platform.
The social media project will probably gain traction following Facebook’s string of abuses and Twitter’s apparent shadow-banning of people with alternative viewpoints. Brendan Blumer, Block.one’s CEO, says the current social media paradigm does not benefit users. He certainly has a point:
“Just look at the business model. Our content. Our data. Our attention. These are all incredibly valuable things. But right now, it’s the platform, not the user, that reaps the reward. By design, they run by auctioning our information to advertisers, pocketing the profit, and flooding our feeds with hidden agendas dictated by the highest bidder. Voice changes that.” – Brendan Blumer
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. Chart via TradingView.