EOS is a late entrant in the crypto industry that has had a rather interesting past. It was introduced to the crypto community through highly extended and the most successful crypto ICOs. It is also one of the few cryptocurrencies that have had their mainnet frozen – albeit temporarily.
EOS then joins the long list of blockchains with highly divided development teams. Further, the digital currency and its underlying blockchain technology continue to draw praise and criticism in almost equal measure because of its choice of the consensus algorithm.
But how have all these affected its past price performance? Importantly, do they have any impact on the altcoin’s future performance and to what extent? We answer these and tell you everything you need to know about the different factors influencing current and future EOS token prices.
EOS price prediction write-up also highlights several expert views about short- and long-term EOS price performance.
What Is EOS?
EOS is the native currency powering the EOS.IO blockchain. EOS.IO, on the other hand, refers to a smart contract-based network that is specially designed to provide companies and programmers with a platform where they can create, host, and deploy decentralized apps (DApps). It borrows heavily from Ethereum blockchain, but with enhanced usability, faster transaction processing, and reduced fees. Its other competitors include NEO and Cardano blockchains.
The EOS altcoin was developed by BLOCK.ONE company under the leadership of Brendan Blumer (current CEO) and Daniel Larimer (former CTO). The pair met in 2016 and started writing the EOS blockchain whitepaper. They published it in June 2017 and launched the EOS ICO before introducing the EOS mainnet a year later.
The EOS ICO quickly turned into the longest-running coin listing in history, seeing that it lasted 350 days, during which period it raised a record $4.197 Billion. It culminated with the creation and distribution of 1.02 Billion EOS tokens as well the launch of the EOS mainnet on 1st June 2018. EOS developers were allocated 10% of the total EOS coins, with the rest being taken up by investors.
But how does the EOS blockchain work, and what sets it apart from the competition?
How Does It Work?
According to EOS developers, the blockchain is designed to offer all the features of Ethereum. But it also seeks to capitalize on its competitor’s weaknesses by making the EOS mainnet fast, easy to interact with, less costly, and scalable. For instance, while the recently upgraded Ethereum blockchain will only process up to 100,000 transactions per second, EOS has the ability to process one million transactions per second.
Such levels of scalability, according to the EOS developers, make it possible for EOS.IO to accommodate the strenuous demands of thousands of DApps with thousands of users each. To achieve this efficiency, EOS has embraced both parallel execution and modular approaches to transaction processing.
In addition to improved scalability and flexibility, EOS also charts a unique path when it comes to securing the blockchain ecosystem. Instead of the popular proof of work and proof of stake consensus protocols used by major blockchains – led by Bitcoin and Ethereum – EOS uses the innovative Delegated Proof of stake (DPoS) algorithm. It is relatively new, was designed by Larimer, and has become not just EOS blockchain’s biggest selling point but also the center of controversies dogging the coin and network.
Also referred to as technology-based democracy, DPoS is a representative-based consensus algorithm. Here, blockchain users elect – vote for – witnesses/delegates who are charged with the responsibility of confirming transactions and creating blocks. They are also charged with the role of proposing and overseeing updates to the EOS network.
Currently, there are 21 DPoS delegates overseeing the EOS blockchain and having been voted in by platform users who have staked EOS tokens. Each staked EOS coin represents one vote, and anyone can become a delegate by convincing as many EOS network users to vote for you.
The DPoS algorithm was first used on the BitShares – yet another decentralized blockchain developed by Daniel Larimer. He argues that the unique consensus protocol is aimed at addressing the inefficiencies of the classic consensus algorithms – Proof of stake and proof of work.
According to Larimer, the Proof of Work (PoW) algorithm is synonymous with wastage of energy and computing power, while Proof-of-stake (PoS) algorithm creates room for network and token price manipulation by the token whales. Larimer is confident that by giving network users the power to vote delegates in and out, DPoS ensures that the elected delegates act in the network’s best interests.
The consensus algorithm has, however, attracted both praise and criticism from the crypto community. Some hail its innovativeness, while critics argue that it doesn’t live up to the Blockchain’s spirit of decentralization, given that it places the network’s core activities (transaction validation, block creation, and network maintenance) in the hands of just a handful of individuals. The effects of this confusion can be traced back to EOS coin’s shaky price charts.
The DPoS opponent’s fears were confirmed in February 2019 when EOS Tribe – one of the EOS network’s earliest delegates – recused itself from the Block Producer’s panel. Tribe’s Eugene Luzgin cited interference and undue influence of the delegate’s independence from EOS whales as the primary reason for the exit, arguing that:
“We at EOS Tribe have never participated in the game of vote-trading and stayed true to our principles”
To examine the impact that EOS Tribe’s exit and pronouncements had on the price of the token, we have to look at the EOS price performance to date. First, though, we look at where to buy EOS and how you can use the crypto.
EOS Trading And Use
Since inception, EOS has been one of the most popular and a widely used cryptocurrency. These, plus its record-setting ICO, ensured the ERC-20 token also had an easy time listing with virtually all the most popular local and international crypto exchanges. Today, you can buy and sell EOS tokens for other cryptocurrencies or fiat currency on such crypto exchanges as Coinbase, Binance, Huobi Global, Kraken, and even CEX.IO.
EOS was designed to be used within the EOSIO blockchain. Its primary role is powering transactions within the network and facilitating payments between DApps developers and businesses. Like most other cryptocurrencies, however, its deep liquidity and consistent value rise made it highly attractive to the crypto investment community. Today, more EOS tokens are used as tradable instruments and for speculative investment purposes than they are used in facilitating transactions within the EOSIO network.
Check Out: Why EOS Is Going to Explode
EOS in 2021: Everything You Need To Know About EOS Price Surge
On 1st January 2021, the EOS coin closed the day trading at $2.64, representing an 867% drop from its peak price three years ago. At the time, it had a market capitalization of $2.475 Billion. Three and half months later, the EOS token price has increased threefold and currently trades well above $6.
For the first time in close to two years (since June 2019), the EOS price peaked above the $7 mark to trade at a new high of $7.1 on 7th April 2021. The next high EOS reached in 2021 was in May - $14.88. Its market capitalization has also soared to about $6.17 Billion, with the coin’s circulating supply currently standing at 952 million EOS coins. We are quick to observe that even with a 268% price jump in the first 100 days of the year, EOS still fell off the top 20 list of the most popular cryptos based on their market cap.
Despite the three-fold price jump, EOS had had a rough time keeping up with its fiercest competition – Cardano and Ethereum. Both have not only maintained their positions in the list of top 10 popular cryptocurrencies but have gone on to set new all-time-high prices in the least 90 days.
Why did the EOS altcoin price jump in 2021?
Experts attribute the continuing – though meek – EOS price rally to a number of fundamental issues. The most impactful being the ongoing crypto market rally as well the release of the EOS.IO 2.0.11 upgrade.
Throughout the fourth quarter of 2020 and the first few months of 2021, the crypto markets were rallying. The period was marked by an unprecedented increase in demand for most digital currencies that saw most of them set new price records. Some industry observers are, therefore, of the opinion that as the demand for EOS competitor’s coins Cardano and Ethereum peaked, it may have spilt over and excited the EOS token prices.
Other actors that may have influenced an EOS price uptrend include the launch of Wrapped EOS on Ethereum’s DeFi pNetwork, the rumours of a launch of EOS Trust by Grayscale investments, the addition of EOS token to the Revolut challenger bank’s list of supported cryptos in the UK, and its addition as collateral on the BitFinex Borrow platform.
These were enough to help EOS launch a massive bull campaign. However, the coin was dealt a major blow when its co-founder – Daniel Larimer – announced that he was leaving both EOS and Block.One. Following the announcement, the EOS coin price dipped by more than 16%, curtailing the otherwise promising price rally.
EOS Price History
When EOS launched in the crypto markets on 26th June 2017, it had an introductory price of $2.29. Within 24 hours, this price had shot up by more than 235%, and the token closed its second day of trading valued at $5.40. By September and well into late October the same year – around the time the first major global crypto rally was gathering pace – however, the EOS token price had plunged below $0.5.
Image: Screengrab of the EOS price performance on Coinmarketcap.com
But just as it caught the token caught up with the 2020 crypto rally late, it would start gathering momentum in mid-November 2017. By mid-December – when most of the cryptocurrencies like Bitcoin were hitting their peak price – EOS coin was still picking up steam. It hit its first peak on 13th January 2018, trading above $15.50. At the time, the rest of the cryptocurrencies had already started tumbling.
EOS followed suit with a reluctant bearish move that bottomed in mid-March 2018, with the EOS token trading slightly below $5. At the time, the EOS coin was hosted on the Ethereum blockchain and traded as an ERC-20 token. As soon as news about a planned launch of the EOS.IO mainnet hit the market, there was a sharp reversal of the bear price move that resulted in an unprecedented price jump.
Within the first two weeks of April 2018, EOS price broke above the historic high set in January. On 29th April, EOS set its current all-time-high price – at $22.89.
The mainnet, however, didn’t live up to its expectations as it crashed less than 48 hours after launch on 1st June 2018 – in a suspected case of DDOS attacks. The bruised start and misconceptions about its revolutionary Delegated Proof of Stake (DPoS) consensus algorithm saw the token prices plummet in the months that followed.
By December, EOS coins were trading below $2 – having shed more than 900% its value in less than 8 months. The contraction of the crypto market and industry-wide price corrections that were taking place at the time only served to add salt to injury.
In 2019, the SEC accused EOS.IO developers, Block.One, of running an unregistered securities sale campaign in the U.S. The case was settled in September the same year and Block.One forced to pay a $24 million fine – about 0.58% of the total amounts raised during the ICO.
For the last half of 2019 and the better part of 2020, the EOS token would record an uninspired price performance. The coin set a support level within the $2 price range and a resistance level of $5. Not even the several upgrades to the EOS mainnet or the blockchain’s consistent ranking on the list of cryptocurrencies with the largest user base were not enough to force a breakout.
Moving forward, how can we expect the EOS token price to perform? Here are the different expert EOS price predictions for 2022 and beyond.
EOS Price Predictions 2022 – 2023
Barely two months after Dan Larimer’s abrupt exit from EOS and Block.One, Effect Network – the largest DeFi on EOS – announced that it was leaving the EOS network. Its developers said they would be shifting base to the Binance Smart Chain (BSC) and cited concerns about the future of the blockchain and its leadership.
They especially expressed frustrations about unfulfilled promises to address problems rocking the EOS mainnet. Some investors and industry observers have tied the move to a loss of confidence in EOS after Larimer’s exit.
These events have all influenced EOS' price and now investors are wondering about the asset's next moves.
Here are some EOS price predictions for 2022 and 2023:
Going by their price prediction, Long Forecast is confident that EOS will weather Larimer’s exit and win back trader confidence in the brand. Their analysis indicates that the current EOS price is the base of the ensuing bullish rally that continues well past 2025.
By December 2022 Long Forecast expects the EOS tokens to trade around $2.51. This peak performance will continue well into 2023 when it hits the next high of $6.20 before slipping and settling around $4.86 by December 2023.
Wallet investor – a popular cryptocurrency price prediction website – has expressed reservations about EOS short-term price performance. Analysts here, expect the token to end the year 2022, trading at around $6.15 before rising gradually to about $7.35 by December 2023.
EOS Price Predictions 2024 – 2025 and Beyond
Crypto Global website analysts are convinced that the next price direction adopted by EOS will be largely dependent on its ability to win back user confidence. They argue that Larimer’s exit, if not handled well, can deal the relatively new blockchain a big blow and doom its future.
But going by the current price performance, the platform expects the EOS token’s price to continue wobbling and hit $15 by the end of 2025.
CoinSwitch.io is, however, more optimistic about EOS’s future price performance. Analysts on the platform are confident that the blockchain is able to leverage its popularity to draw in more developers and business and sight, which eventually drives up its prices. By the end of 2025, Coinswtich expects the EOS price to hit $106.77.
The Future of EOS: What are Experts Saying about EOS Potential Growth?
Despite the controversies and challenges rocking EOS, expert traders and crypto industry observers are quite bullish about its future. They all agree that there is a reason why developers and blockchain resource users have flocked the EOS mainnet. They are also appreciative of its upgrades and the impact its versatility and scalability have had on the smart contract niche.
Some, like AMB Crypto website analysts, are confident that EOS is in the Buy Zone.’ They are confident that the selling pressure that rocked the coin for the past few months is dying down. They, therefore, expert the altcoin’s price to level for a few months before eventually breaking out and possibly surpassing its previous all-time high.
Ali Ayyash – Lumeous founder and CEO – is confident that EOS will ultimately overtake Ethereum as the preferred smart contract blockchain. Given its extended scalability and faster transaction processing speeds, Ali is confident EOS will beat “Ethereum by a factor of ten” and go on to become the biggest blockchain ever.
Bottom Line: What Direction will EOS Price Take?
Dan Larimer and Effect Network’s exit from the EOS blockchain piled more pressure on a platform that is already bruised from constant criticism of its DPoS algorithm. However, something interesting happened immediately after the two key EOS ecosystem players left, the coin’s price rebounded – fast. Experts see this as proof of the blockchain user’s confidence in the brand.
Some, however, believe that the impact of Larimer’s exit from the blockchain hasn’t manifested fully, especially after the blockchain’s co-founder announced plans to create a rival product. While the blockchain’s popularity may be safe in the short term. Its developers must work harder to guarantee the platform’s sustainability and security if they hope to prevent more developers from shifting base, especially when the upcoming Larimer project launches.
Using some of the EOS price predictions highlighted above by some of the crypto industry experts, this is how they expect the EOS to perform in the next five years:
EOS Price Predictions For 2022-2025:
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