EOS price, transaction volume, and dApp activity in the last several months saw a significant drop. Analysts seem to believe that the reason is the approaching hard fork, as well as the recent announcement of EOS social platform, Voice.
According to research published by a cryptocurrency and blockchain analysis firm, Brave New Coin, EOS has seen one of the most significant downward trends in its history. The drop did affect not only EOS’ price but also its transaction volume, as well as overall activities within its ecosystem. Even EOS’ dApps are seeing a significant drop.
The research that got published this Monday, August 19th, indicates that the cause of the drop might be the approach of the next hard fork of EOS’ blockchain. The hard fork itself was scheduled for September 23rd. In addition to that, the ecosystem recently saw an announcement of its soon-to-launch social platform, known as Voice.
The result is an 84% drop in EOS price, which kept going down ever since its historical maximum, reached back in April 2018. Back then, EOS exceeded $21. At the moment, however, its price stands barely above $3, with a market cap of $3,42 billion and a trading volume of $1.27 billion in the last 24 hours. EOS is currently ranked as 8th largest cryptocurrency, sitting between Tether (USDT) at 7th place, and Bitcoin SV (BSV) at 9th.
Further, it appears that EOS’ exchange volume in the last 24 hours ended up being dominated by EOS/USDT trading pair, with pairs with Bitcoin and Ethereum being close behind. Even so, analysts estimate that EOS’ trading pairs against USDT and Bitcoin have dropped by over 60%, and transactions per day continue to decline.
Not only that, but researchers believe that the real number of transactions might be even lower than reported, likely only one-fifth of the estimated 5 million.
EOS still leads over NEO
The number of transactions has been on a sharp rise since December 2018, mostly due to increased activity among EOS’ dApp users. The value of the average transaction is estimated to be at around $75, while the reported maximum was $38,000, likely also related to the increased activity within dApps.
On the other hand, the number of active addresses related to EOS transactions is currently at around 52,000. This was nearly half of the number of active addresses from January of this year when that number was near 95,000. Even so, EOS still sees significantly more activity than its primary competitor from before, NEO.
Speaking of the higher number of users, another report, issued by the company called AnChain.AI earlier this year, seems to indicate that 51% of EOS users were bots. They executed 75% of EOS operations in January, the report claims, thus allowing EOS to be one of the leaders in term of dApp activity. The bot activity was estimated to be responsible for $6 million worth of EOS’ daily volume from January 2019.
However, in recent months, the average volume of transactions seemingly went down. Analysts remain convinced that gambling and dApp exchange are still among the most popular activities; more likely since gambling is highly regulated in the majority of countries around the world.
The new reports only add to EOS’ troubles, which initially started last June, with the departure of EOS NY as a block producer. Not to mention the degradation by the Weiss agency’s rating, which made people wonder whether or not EOS is truly decentralized as it claims.
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