Despite its large market capitalization, EOS has gained by 100X and its newest staking reward program is to blame.
As the blockchain industry evolves, periodic application upgrades are required to keep programs current with the recent advancements or to provide people with the optimum user experience.
Major Signals
- EOS's price has soared over 100% since the 5th of May.
- The probability of higher yields has brought in a new set of users.
- The estimate for the trading pair is also positive on the possibility of a rally.
- The 24-hour volume was $15 billion in trading volume.
- The token soared to peak at $12.85 on the 6th of May.
After yet another protocol update that raises the program's rate of inflation, the price of EOS has risen now over 100% since May 5. So, what might have caused this? Let's take a look at a few of these variables.
The most important changes for the network in the last month, have been linked to resource distribution and staking rewards. Block commissioned a report recently. To raise financial incentives for voters and block manufacturers, one study concluded that the protocol's inflation rate should be increased from its current rate of 1% to a rate of 1.2 percent to 3.8 percent.
Although the group must also agree on the precise scale of the inflation rate rise, the possibility of higher yields for community engagement has added to the project's enthusiasm.
It allows users to pay a fee to power up their account for 24-hours of network transactions rather than charge a transaction fee for each transaction, which is the protocol's second major development.
This model provides an additional means for token owners to gain a return by placing unspent tokens in exchange for a portion of the network's power-up fees.
Most traders are looking for more ways to escape the Ethereum network's high transaction fees and congestion, so this has become a progressively appealing choice.
The current EOS price rise occurs at the crossroads of two distinct price patterns. The EOS/USDT trading pair is at the top of its revised estimate for 2021, while the token's price against Bitcoin dropped to its lowest point in three years in early March.
It broke a nearly three-year downtrend, indicating the possibility of a breakout.
Also, with Bitcoin's supremacy beginning to erode in the face of huge altcoin increases, the business cycle appears to be favoring large-cap tokens. Indeed, the prices of big alts have skyrocketed.
These altcoin gains have been fuelled even further by the fact that Ether has reached new all-time highs.
EOS is following the trend, gaining enough traction against Bitcoin to demonstrate considerable price action strength. The EOS/BTC trading pair is up 76 percent in the last 24-hour trading period as of this writing.
Conclusion
These are some of the reasons for EOS's recent rally in the market. Although it was well-known during the last bull run he quickly fell off the popular crypto Trader and since then has attracted little or no attention. But it has been performing so well this bull run and eyes are on it.
As we head further into the altcoin season, we expect to see more from EOS and other altcoins like it. EOS is currently trading up 59% in the past seven days and over 80% over the past two weeks.
Question of the day
What do you think of EOS's rally? When would it reach $20? Let us know what you think in the comments.
