The coin has reached its best daily performance since May 2021

EOS token has risen 30% in 15 months. We explain the reasons for the growth

17.08.2022 - 13:30


3 min

What’s new? On August 17, the native token of the EOS blockchain project rose 30,7% to $1,83. This is the best daily figure since May 2021, when the price of the asset peaked at $14,9. Initially, the jump in the coin's exchange rate was due to a correlation with leading cryptocurrencies, such as BTC and ETH. However, a number of positive news regarding the EOS ecosystem could also be a likely reason for the growth. As of August 17, 13:20 UTC, the asset is trading at $1,52, having gained 18,54% in a day, according to the crypto exchange Binance.

Information on Binance's website

Probable reasons for the growth. On August 14, the EOS Network Foundation (ENF), the nonprofit organization that oversees the growth and development of the EOS blockchain, opened registration for its upcoming Yield+ incentive program. This is a liquidity incentive and reward program to attract decentralized applications (dApps) that generate revenue for their users. Since Yield+ registration began, total value locked (TVL) in EOS pools has increased from EOS 94,71 million to EOS 99,33 million, indicating a temporary surge in demand for the tokens.

In addition, according to EOS founder Ives La Rose, there will be a rebranding of EOS to EOSIO later this week and a consensus upgrade to version 3.1 called Mandel in September. He noted that the upgrade will happen via a hard fork, which means that the new version will not be backward compatible with the original chain and will follow new consensus rules. The rebranding and upgrade serve as a symbolic parting of EOS from the network's original developer, Block.One.

From the technical point of view EOS rate expects an extended bullish trend in the coming weeks, notes Cointelegraph analyst Yashu Gola. The first important hint comes from the “cup-and-handle” pattern on the EOS daily chart, which is confirmed by the U-shaped price trajectory followed by a downtrend channel. According to the rule of technical analysis, the “cup-and-handle” type breakthrough should raise the price to the maximum height of the figure. As a result, the growth target for EOS is about $2,45, which is 55% higher than the current price.

However, the breakout risks losing momentum near the 200-day exponential moving average (200-day EMA) at $1,79. Such a pullback could cause EOS to test the 50-day EMA at $1,21 as its next downside target, 23% below the current price.

EOS is a smart-contract blockchain network launched in 2018. The platform has a native token of the same name, which is needed to buy computing resources when running dApps. The network uses the Delegated Proof-of-Stake (DPoS) consensus mechanism.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy