In a wide-open subject of crypto contenders, the place does EOS (CCC:EOS-USD) stand? The native token of the EOS.IO blockchain, to this point it hasn’t grow to be as large as a number of the trending altcoins not named Ethereum (CCC:ETH-USD).
With whales like Mike Novogratz and Peter Thiel backing its developer, Block.one, it’s comprehensible why some buyers have grow to be enthusiastic about this extra obscure crypto’s prospects. Its token value surged final month, as information broke of Block.one launching its Bullish Global crypto change later this yr.
Yet, this run-up in enthusiasm rapidly pale. Coupled with the “crypto meltdown” final month, costs have fallen again from highs above $14, to round $5.10 at present. So, what’s it going to take to maneuver the needle as soon as once more? Likely, one thing better than this oblique catalyst.
It has many benefits over the cash/tokens extra utilized in DeFi (decentralized finance), however it nonetheless must differentiate itself from the remainder of the pack. Otherwise, it might find yourself getting misplaced within the crowd.
EOS Needs More Than Just Billionaire Backing
Novogratz and Thiel aren’t the one acquainted names concerned with this crypto’s developer. As InvestorPlace’s Ian Bezek mentioned on June 2, hedge fund billionaires Louis Bacon and Alan Howard have invested in Block.one as effectively.
This is a novel function of the EOS narrative. To make sure, this isn’t the one blockchain mission the so-called sensible cash have taken a liking to. Other cryptos have Wall Street and Silicon Valley heavyweights backing behind them as effectively. But, few have similar to concentrated involvement from the funding and tech areas as this token’s developer. Yet, this comparatively greater quantity of enterprise institution backing doesn’t by itself make the bull case right here.
Billionaire backing could present some social proof. But, it’s going to wish greater than this to considerably rise in worth over time. What does it want? Critical mass. Given its options, it has a shot of gaining extra widespread utilization. In different phrases, it has the potential to grow to be an “Ethereum killer.”
The drawback? Rival altcoins have most of the similar benefits. This is what provides them a shot at taking a shot at DeFi chief Ethereum. Those benefits? These embrace better scalability, quicker transaction occasions and decrease charges. Not solely that, the main DeFi blockchain’s upgrades are simply across the nook. Both elements could make it robust for EOS to increase its person base.
It May Fail To Become an ‘Ethereum Killer’
EOS could have a smaller market capitalization ($4.8 billion) than most of the different names taking over Ethereum’s DeFi dominance. But, as I discussed above, this blockchain has its fair proportion of “Ethereum killer” bona fides.
To start with, this platform was constructed particularly for the internet hosting of commercial-scale dApps, or decentralized purposes. Another is that EOS.IO presents quicker transaction speeds and doesn’t have transaction fees. Add in its better scalability, and also you’re in all probability questioning why this platform hasn’t caught on, given its clear-cut benefits to the established DeFi platform.
It could have constructed a greater mousetrap. But, that doesn’t imply it’s set to grow to be the last word ETH killer. Other names vying for that moniker have most of the similar benefits. Cardano (CCC:ADA-USD) is moving ahead with upgrades that would additional make it a greater model of Ethereum. Solana (CCC:SOL-USD) is coming near having transaction pace on par with legacy payment systems, which might give it an edge.
Yet, what’s the most important problem to EOS changing into an Ethereum killer? The widespread blockchain itself could handle to remain forward of the pack that’s gaining on it. The upcoming Ethereum 2.0 upgrades could also be sufficient to maintain these rivals at bay. With the competitors heating up, and little to distinguish itself from the remainder, this platform, and its native token, could have a tricky time rising above their present also-ran standing.
Still Not a Stand-Out From the Crowd
The EOS.IO platform could have billionaire backing on its facet. Its blockchain could have many benefits over the present high canine within the area, Ethereum, as effectively. But, whereas it’s not missing by way of scalability, pace and transaction charges, this fails to distinguish itself from the remainder of the gang.
Add in that Ethereum’s 2.0 upgrades might assist it preserve its lead, and it’s laborious to be assured that it’ll find yourself breaking out in value within the near-future. If extra developments, like additional platform upgrades, or information such because the Bullish Global change information that despatched it hovering briefly final month, play out, we may even see one other pop in costs.
Until we see extra progress with EOS, nonetheless, it could be finest to carry off on this token, and focus extra on the remainder of the pack.
On the date of publication, Thomas Niel held a protracted place in Ethereum. He didn’t have (both immediately or not directly) any positions in another securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock evaluation for web-based publications since 2016.