In the last 24 hours, the EOS price has surged from $2.71 to $3.06 by more than 10 percent against the U.S. dollar, reclaiming its position as the 4th largest crypto behind Bitcoin, Ethereum, and Ripple.
Last week, Litecoin overtook EOS following a strong 30 percent increase in price. The surge in the price of Litecoin was mainly attributed to fundamental factors that include active development of privacy solutions Mimblewimble and Confidential Transactions.
Fueled by the momentum demonstrated by several major crypto assets in the likes of EOS, Ethereum, and Ripple, the valuation of the crypto market rose $2 billion from $120 billion to $122 billion.
EOS Showing Exceptional Strength, is Crypto Market Up For a Short-Term Rally?
On February 11, a cryptocurrency technical analyst with an online alias “DonAlt” said that EOS has been showing exceptional strength.
While the price of Bitcoin has declined from $6,000 to the mid-$3,000 region since November, EOS has recovered to its November levels when Bitcoin averaged at around $6,200.
“EOS is back at the level it was before BTC broke 6k. (!) Showing exceptional strength. A bit more confirmation and I’ll jump in,” the analyst said.
Traders generally foresee EOS slightly retracing in the near-term subsequent to a strong 10 percent rally. But, in the days to come, EOS is expected to maintain its momentum against both Bitcoin and the U.S. dollar.
The short-term recovery of EOS was mainly triggered by technical factors and was supported by an overall increase in the valuation of the cryptocurrency market.
On the fundamentals side, the EOS blockchain protocol has demonstrated decent growth in terms of active users of decentralized applications (DApps).
Earlier this month, Weiss Ratings, an independent U.S.-based provider of cryptocurrencies, stocks, and mutual funds ratings, said that EOS is ahead of TRON in DApp usage and adoption.
“EOS has a DApp called Dice, and it’s beating another DApp, TronBet by about 60% in volume and 30% in transactions. People shilling TRON need to understand that EOS is still way ahead,” the Weiss Ratings team said.
Similarly, in January, analysts at digital assets and regulation trade publication Diar explained that numbers from EOS including on-chain transactions and DApp activity dwarfed that of Ethereum, the largest smart contract protocol in the global market.
The scalability-focused smart contract protocol of EOS has given DApps with more flexibility in processing large chunks of information on the blockchain, offering a more favorable ecosystem to developers.
The researchers wrote:
While Ethereum alone transacted over $7.6Bn on-chain for Decentralized Applications (Dapps) in 2018, largely coming from Decentralized exchanges (DEX), adoption has been dwarfed by rival platforms. EOS and Tron Dapps now account for 94% of US Dollar volume across the three major blockchains having won over gamblers.
Both technical and fundamental indicators of EOS point toward a solid short-term price performance. If Bitcoin continues to climb up to a major resistance level at $4,000, it could allow other assets like EOS to maintain its momentum to the upside.
Near-Term Outlook of Crypto
On Tuesday, CCN.com reported that Morgan Creek secured $40 million from public pensions.
Fairfax County’s Virginia’s Police Officer’s Retirement System and Employees’ Retirement System led a new round in Morgan Creek’s crypto fund participated by a hospital, a university endowment, and an insurance company.
Anthony Pompliano, a general partner at Morgan Creek, said that the deal represents the entrance of the first wave of pensions into the cryptocurrency market.
Investors and analysts such as Woobull founder Willy Woo and Placeholder VC CIO Ari Paul expected institutional investors to engage with crypto by the third quarter of 2019.
The investment of two public pensions in the U.S. could fuel the confidence of both reteail investors and institutions in the upcoming months.
Last modified: March 4, 2021 2:53 PM