EOS saw a big jump in value in early April, when, within one day, the price of EOS jumped from less than $5 to over $9.00, a price hike of 45%. So, what was the cause of EOS’ biggest jump in value since 2017, and does it indicate this much-hyped crypto is about to live up to expectation?
On April 12, the price of EOS closed at €4.86 euros, but by April 13, its value had climbed to €7.56, leaving experienced crypto-watchers scratching their heads. One possible reason for the price increase could have been the release of the Dawn 3.0, the update was one of the last, yet most important steps from the launch of the Mainnet in June 2018. Dawn 3.0 Alpha Release includes deferred transactions, staking pools, a new currency contract, and a new emerging token standard. Many believe that the addition of Dawn 3.0 will be the final piece of the puzzle that turns EOS into the mythical “Ethereum Killer”.
Airdrop Of New Crypto eosDAC
Another possible reason for the sudden, dramatic increase in EOS valuation could be the highly anticipated free Airdrop of the new cryptocurrency eosDAC to all EOS owners, scheduled to take place on April 15. In the past it has been shown that “free crypto” giveaways often have a significant impact on the price development of a currency, and can often even lead to a “pump”. Considering that the pump took place from 10 to 13 April, at least a “rough” temporal correlation can be established. It is surprising, however, that the course has given way again on 13 April.
It would seem somewhat surprising that the subsequent EOS price decline was relatively small. If the pump was triggered mainly by the free crypto Airdrop, the majority of any increase would soon dissipate. However, over the past few days, it has been revealed that both ONO – a blockchain-based social network from China – and the Bitcoin Mining Pool Antpool (also known as Bitmain) have applied to become “Block Producers” on the EOS network.
EOS’ increased valuation has held firm, and its current coin price is $9.28, with a market cap value of $7.448 billion. EOS’ ranking is sixth.
Block Producers are nodes that play a key role in the Delegated Proof of Stake from EOS. All in all, there are only 21 block producers who generate blocks in EOS Mainnet and receive a reward for their work. Block Producers (BP) can put themselves up for election by the community. In order to operate as BP, some network infrastructure must be provided to process the transactions.
Just because of the rewards, the position as BP is worth aspiring. Because of this, there is a presumption that Antpool and others might have invested a lot of money in the days of the pump. Another rumor concerns EOS itself. Because EOS has transferred some of its ingested ethers, there are voices that suggest that EOS has caused some of the recent increase in demand at the daily auctions themselves.
Of course, the precise contributing factor – besides people suddenly realizing they really needed to purchase some EOS coins – was responsible for the price increase of EOS, cannot be proved. The fact remains that the EOS Network goes live in about two months, and then it’s time for EOS to prove that it really can be the “Ethereum Killer” many experts have preordained it to be. Until that happens and EOS lives up to all of the hype that has been thrown its way, it remains just that – hype. Meanwhile, all of the anticipation and expectation surrounding EOS could actually be the real reason for its value increasing.