EOS has surpassed $9 billion in market valuation for the first time in history, recording a daily gain of over 40 percent as the South Korea cryptocurrency exchange market recovered from the trading ban FUD.
Over the past 48 hours, the global cryptocurrency market struggled to rebound from a major correction triggered by South Korea Ministry of Justice head Park Sang-ki’s premature statement on a cryptocurrency trading ban, which was refuted by the country’s Ministry of Strategy and Finance, and the Blue House, the executive office of President Moon Jae-in.
Upon the fallout of the cryptocurrency trading ban proposal by the Justice Ministry, cryptocurrencies heavily concentrated in the South Korean market in terms of daily trading volume and user base have increased in value. Cryptocurrencies like Zcash, Qtum, Monero, and EOS that have nearly 50 percent of their daily trading volumes processed on South Korean cryptocurrency exchanges have increased significantly in value.
In the South Korean market, EOS has gained popularity due to its relatively cheap tokens and Ethereum-like ecosystem. Built on top of the Ethereum protocol, EOS powers decentralized applications with a flexible and scalable network. Each EOS token is worth about $11, which is substantially lower than that of Ethereum’s Ether, which is valued at $1,260.
Newcomers and beginner traders in the cryptocurrency exchange market often tend to evaluate the potential growth capacity of cryptocurrencies based on their price, not market cap. For instance, many investors in the South Korean market believe that Litecoin is worth more than Ripple, because Litecoin costs more than $250, while Ripple costs less than $3.
“For new investors in crypto, think in market cap. Not price per coin. Market cap gives an estimate of the potential growth. Price per coin doesn’t mean anything as the supply for each altcoin differs. $0.1 per coin doesn’t mean it’s cheap. $100 per coin doesn’t mean it’s expensive,” explained cryptocurrency trader Squeeze.
But, the vast majority of investors in emerging markets like South Korea still have not grasped the concept of market valuation and evaluate cryptocurrencies based on the price of individual tokens. As such, the popularity of EOS increased in South Korea because it functions and operates similarly as Ethereum and Cardano but is cheaper in price.
Currently, Bithumb, the second largest cryptocurrency exchange in the global market based in Seoul, is processing $1.3 billion worth of EOS, as the second most traded cryptocurrency in the South Korean market. The EOS trading volume on Bithumb is larger than bitcoin, Ethereum, Bitcoin Cash, Litecoin, Monero, Dash, and Zcash combined.
In the short-term, cryptocurrencies with a strong consumer base in South Korea such as Monero, EOS, ZCash, Qtum, Ripple, and Ethereum will likely surge in value, as the entire cryptocurrency market recovers from the recent correction.
Ripple and Ethereum have also large communities and followers in the South Korean cryptocurrency exchange market, which has been driving the price of most of the abovementioned cryptocurrencies up over the past several months.
Featured image from Shutterstock.
Last modified: May 20, 2020 9:11 PM UTC