EOS was the cryptocurrency market’s top performer on Wednesday and has now recovered more than a third of its recent low, a sign that investor confidence was slowly returning.
EOS Price Update
The value of EOS surged 14.6% to $6.17, the highest in three weeks. According to CoinMarketCap, the digital currency has a total market capitalization of $5.6 billion. With the gain, EOS has managed to pare its monthly loss down to 13%. It was down by as much as 40% through the middle of the month.
EOS trade volumes amounted to $741 million, up 40% from last week’s levels. Exchanges with the highest EOS turnover include OKEx, Binance and Huobi.
EOS’ gains far outpaced the broader market. The combined value of cryptocurrencies rose 2.9% on Wednesday to $232.1 billion, the highest since. Aug. 7. Trade volumes are up 11% over the previous day’s levels.
Are DApps the Future?
Decentralized applications (DApps) are widely considered to be the future of internet technology, but a recent analysis of EOS and Ethereum DApp users show limited uptake of these new protocols. According to Kevin Rooke, a Canadian cryptocurrency researcher, Ethereum and EOS have only eight DApps that are actively utilized. To be considered “active,” a decentralized application needs to have more than 300 daily users, according to Rooke.
A further breakdown reveals that, among the eight, only three are hosted on EOS. The most popular EOS decentralized application is EOS Bet with weekly transaction volume of $18.1 million. By comparison, Ethereum’s IDEX (the most popular on the platform) sees more than $7 million in weekly transaction volume.
Dubbed the “Ethereum Killer” by some, EOS officially launched its network back in June to a myriad of issues. However, much of its functionality remains in development, including a governance process that will allow token holders to vote in referenda based on the number of tokens in their possession.
This is vital because EOS currently has $35 million in a savings account to fund future initiatives. That figure is expected to rise to more than $20 million after 12 months, assuming the current price point of $6.17. Without a voting process in place, there’s no way to actually allocate the funds.
EOS founder Daniel Larimer has confirmed that he wants to re-write the system’s constitution to further enhance the EOS arbitration forum. It remains to be seen how the constitution re-write will impact EOS’ governance process. Some EOS developers have banded together to create a new alliance for decision-making. The official website states that the group will be independently funded and “will be held accountable to the community under the EOS Constitution.”
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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