The turbulence in the crypto market made many assets lose their value during the last year, including the EOSIO network native token. The project was created to allow developers and businesses to deploy the dApps with more ease and fewer expenses. The announcement of the upcoming hard fork made the price of the EOS token go up, but the experts don’t see the token rising for a long time, and even more, the price of the token is expected to go down before surging. Read our EOS token price prediction to understand if you should invest in the asset.
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EOS Fundamental Analysis
EOSIO is an open-source blockchain platform that helps developers, investors, and businesses build large-scale decentralized applications. As stated in the project WhitePaper the network is capable of supporting thousands of dApps without suffering from the slow confirmation times and high fees. The project aims to be fast, flexible, and forward-driven with the goal to allow developers, institutions, and entrepreneurs to build with confidence.
The distinguishing advantage of EOSIO is the absence of transaction fees if users want to send and receive the native EOS token. The network is highly configurable, allowing developers easily program them according to their needs with simple and common languages like Python, C++, and Java. It also has a settlement speed of fewer than 0.5 seconds with 99% certainty. The network provides end-to-end authentification, while also maintaining data integrity and security by verification standards. Thanks to the smart contract capabilities, the networkenables developers to create their own dApps
The architecture of the EOSIO network is designed to mirror the performance of a real computer. To power the network. three types of resources are needed: bandwidth — for transmission of information across the network, computation to run a dApp, and state storage — to store data on the blockchain.
The history of EOSIO started in 2017 when Daniel Larimer and Brendan Blumer cofounded the Block.One company that became the parent organization for the EOSIO blockchain. Larimer is a known blockchain developer that has run three companies before EOSIO. He developed the delegated Proof-of-Stake consensus mechanism used by the network back in 2014. Blumer is closer to the entrepreneurship world and before starting this project founded one of the largest property agencies in Hong Kong.
Before the official launch of the project, the ICO was held that became the largest to date, raising a record 7.12 million ETH, valued at $4.2 billion at that time with over 900 million tokens sold.
The network utilizes a delegated Proof-of-Stake consensus mechanism. It generates the EOS tokens through the staking rewards to fund transactions and pay block users. The mechanism is set to 5% of annual inflation, meaning that no more than 5% of the total supply can be issued each year.
The EOS blockchain is more scalable than most contemporary blockchains. It is able to process around 4000 transactions per second. The smart contract functionality on EOSIO is more friendly allowing developers to get technical resources directly from the blockchain.
EOS is the native utility token of the blockchain and its cryptocurrency. It is required to purchase all the resources mentioned above, meaning that to run the deployed dApps developers need EOS tokens. The coin is also used for governance and its holders can vote for proposals, thus making the community a real authority over the project. At first, EOS tokens were issued as ERC-20 standard assets, because the network was not launched once the ICO was held. In June 2018 the ERC-20 tokens were frozen and then replaced by the native EOS coins via token swap. EOS is an inflationary asset, with an uncapped supply.
In 2021 the Block.One company stopped supporting the project, and ENF (EOS Network Foundation) pursued legal action against Block.One for malpractice concerns. After it ENF started to explore coordinating EOSIO-based blockchains.
The EOSIO network is going to be hard forked on September 21. After the event, the community-driven Antelope protocol will be used as an underlying protocol for EOSIO-based blockchains.
EOS Live Price Chart
After the season of the bears during the summer of 2021 the price of the EOS token has recovered, reaching the level of $4.3 by the end of September. The overall sentence was positive and after a short recovery to $3.6 on September 29, the token went surging going along with the overall tendency for the altcoins. On October 3 the price went up to $4.6 and continued growing. It could only reach $4.9 on October 9 and then went back to the level of $4.6
For almost a month EOS stayed at around the same level bouncing within $4.7-$4.8 and only on November 9 managed to break the resistance and hit $5.2. That was the apogee of the autumn bull rally for the EOS coin and in the second half of November, the price dropped to $4.2 and started to decline moderately for the next weeks. At the beginning of December, the price of the EOS token lost around 25% and fell to $3.0. Till the end of 2021, the value of the EOS coin stayed down, bouncing between $3.0 and $3.6.
For the EOS token, 2022 started in the downtrend. Till the middle of January the price stayed at around $2.7, but from January 17 started to decline more significantly. On January 24 the asset was traded for $2.2. It recovered to $2.6 at the beginning of February, but just for a couple of days, and then continued declining till the middle of March when it reached $1.9.
At that time the crypto market started to recover from the hard winter that most tokens went through, and by the end of March the value of EOS reached $2.8, and the uptrend was broken again. The EOS crypto price went to $2.1 at the beginning of April, and after a short recovery to $2.7 established a downtrend.
On May 7 the situation got even more serious. The bears were hitting the crypto market and together with most of the crypto assets, the EOS token dropped by over 50% establishing the price of $1.3 for the next month. With the nest market collapse, EOS also dipped, stabilizing at $0.9.
For the next 1,5 months, the EOSIO network native token was slightly going up without much success. After the announcement of the upcoming hard fork, the price of the EOS token surged and has risen over 40% from the end of July till the end of August, showing the biggest gain in the last year.