EOS is a very popular cryptocurrency in 2022 and 2023, but it may grow a bit in 2022. Learn more about this cryptocurrency.
According to data presented in a video on the YouTube channel Captain Gizmo, the EOS cryptocurrency remained in the top 10 tokens with the largest market capitalization from its release in June 2017 until January 2020. That was two and a half years of consolidation and growth, on par with the market.
However, since then it has lost positions in the cryptocurrency rankings by market capitalisation. It is currently ranked 51st. Why has this happened? And more importantly, can it recover in the coming months and reach the top positions again? These questions will be answered here.
A brief history of EOS
The EOS.IO white paper was released in May 2017. This Blockchain protocol had among its goals to offer scalability and economy for the crypto ecosystem. This involved processing a large number of transactions per second and at a very low cost. EOS uses the Proof of Stake consensus protocol, unlike the Proof of Work protocol used by Ethereum and Bitcoin. This type of consensus requires block tokens to participate as a validator (rather than a miner), process transactions and earn token rewards. EOS would make cryptocurrency exchange more flexible than ever before.
Initially the tokens were sold through Ethereum’s ERC20 network (its main competitor) and it was not until 31 January 2018, in the middle of the Alt-Season, that the Dawn 3.0 version was released. By then the price per token was at an all-time high of around $15 per token. It was not until late April 2018 that it reached an all-time high of $21 per EOS token, according to data provided by Coinmarketcap.
With the onset of the cryptowinter, EOS lost much of its value, but remained at an average of $3, peaking at $8 in April 2019. In March 2021 it began an upward spiral, as an update was due to be released in the coming weeks.
By 4 May it reached a price unheard of since 2018: it hit $14 per unit. However, when EOS version 2.1 was finally released, the price had already been in free fall for several consecutive days, trading at $5 by then. This coincided with the ups and downs of Bitcoin over the same period.
Want to have this cryptocurrency in your portfolio? You can buy eos on Changelly, a buy, sell and exchange platform where you can pay in fiat money and receive tokens directly to your EOS wallet without making expensive withdrawals from a centralized exchange. You can also find an overview of the cryptocurrency on Changelly.
Competitors don’t let up
EOS was one of the first coins to propose Proof of Stake (PoS) as a more viable, greener and cheaper alternative to Proof of Work. The exponential rise of Ether, Ethereum’s network token, also drove up the gas fees that miners must be paid for operating on the blockchain.
This looked like a golden opportunity for EOS, and was one of the reasons why it did not lose positions in the ranking by market capitalization in 2018 and 2019. However, in 2020 newer PoS competitors established themselves as a better alternative to EOS.
This happened with Binance Coin (BNB), the native cryptocurrency of the Binance exchange, which despite being highly centralized was able to offer users good scalability and security.
The same also happened with other projects such as Terra, a protocol that is increasingly growing in terms of adoption, especially for its Staking programmes on the stable UST currency, which allow high interest rates to be earned from Spain or any other country in the world without being affected by market volatility.
Solana also consolidated itself as a likely Ethereum-Killer in 2021, thanks to its great scalability, which allows up to 50000 transactions per second and has powerful decentralized exchanges that allow you to buy cryptocurrencies very easily.
Although EOS remains in the top 100 of the most valued cryptocurrencies on the market, it needs a recovery if it wants to recover in terms of price. Its Foundation needs to think of alternatives to offer more than just scalability.
In a world where decentralized finance, Play-to-Earn games and NFTs exist, an exclusively scalable solution has little to offer. A bull-run or a season of altcoins could drive up the price of the token, which due to its backwardation could be in a very good buying zone.