Is it worth buying EOS in 2021? Why is the altcoin popular today, and what are the pros and cons of investing in EOS tokens today?
Earlier in the year, EOS token prices rallied and went ahead to peak in May - setting its third-highest price yet. During this period, the EOS daily trading volumes soared from just a few hundred million to posting transactions valued well over $2 Billion daily - even in the current dip. Moreover, experts believe that EOS will rise again and that the sooner the crypto market recovers, the sooner it will resume the early 2021 price rally. So is EOS worth buying in 2021? Yes, all these statistics point to the fact that EOS is still a good crypto investment in 2021.
Having started the year trading at $2.6 EOS pushed this price up 7X within the first four and half months to reach $14.88 by mid-May. Two months later, most of the gains made during the rally have been eroded by the crypto market crash of May 18th, but EOS still records a 130% value gain on the year-to-date gain scale.
But should you buy EOS today? We explain this in detail in this EOS investment guide.
Before that, though, let us try to understand the EOS token and blockchain and how they work first.
What is EOS (EOS)?
EOS is highly decentralized blockchain technology that provides users with a platform on which they can build and successfully launch decentralized apps and smart contract-capable protocols. In most ways, it works as Ethereum and most of the “Ethereum killers” set up to challenge Ethereum’s dominance in the smart contract space.
But EOS is designed to provide blockchain developers with more than is currently being offered by Ethereum and some of its fiercest competitors. It has the goal of maxing network scalability and making the EOS network easier to use than all other smart contract-capable blockchains.
To achieve this, EOS has made its platform as easy to interact with as possible. It has then provided developers with the widest range of free tools and readily accessible educational resources that help them build and successfully launch highly functional DApps and protocols in the shortest time possible.
Has this paid off? Yes, because after launching in June 2018, EOS quickly became one of the fastest-growing blockchain technologies after onboarding a record number of developers in a short time. Three years later, EOS blockchain - developed by Block. One Technology Company has consistently ranked highly among the most widely used cryptocurrency projects in the world.
Whys is EOS (EOS) so Popular Right Now?
EOS is popular today because its ease of use and unmatched scalability make it look like Ethereum’s biggest competition, and its maturity gives it mileage in the ultimate “Ethereum Killer” debate. It should be noted Ethereum blockchain’s failure to reinvent has had the crypto community looking for more affordable and more scalable alternatives.
This means that every new blockchain that claims to dethrone Ethereum or proves to be more scalable and significantly cheaper in transaction processing gets a lot of attention from developers and the crypto community at large. And as the crypto industry matures, a lot of eyeballs from the off-chain technology and conventional companies too. And this slowly steamrolls into the popularity that EOS and others dubbed Ethereum killers are receiving today.
But what really makes the EOS blockchain stand out? Here are three key contributors:
1. It appeals to developers
EOS has the ease of use of its blockchain and appeal to developers as one of its biggest selling points. It has constantly drawn in numerous developers who have created and successfully launched helpful DApps whose popularity, ease of use, and sophistication has, in turn, helped bring in more users and other developers an
2. Scalable and inexpensive
EOS is also popular because it is more scalable than the Ethereum blockchain and maintains incredibly transaction-processing fees. This has helped it eat into Ethereum’s market share as the latter drags its feet over plans to broaden its scalability with the shift from Proof-of-Work to Proof-of-Stake consensus mechanism and the launch of Ethereum 2.0.
3. It is a good investment
The level of influence that speculative investors have on crypto coins and entire blockchain projects is unfathomable. But it manifested clearly with Dogecoin’s 2021 price rally. A significant portion of EOS’ popularity can, therefore, be said to be speculative investor-induced. Its overall uptrending price movement has attracted long-term investors, while its volatile price action has wooed day and short-term traders who have helped spread the word about the altcoin.
Check Out: Pros and Cons of Investing in EOS
Should I Buy EOS (EOS)?
You should consider investing in EOS token because it has an overall positive ROI, has the backing of promising blockchain technology, and every indicator points to the fact that its prices will continue rising in the future.
With a listing price of around $2.7, EOS has repeatedly proved that it has everything it takes to escape the low price level and score its investor’s massive gains. It has even climbed as high as $22, and were it for the sudden and unexpected market crash, some analysts had expected it to break above this all-time high by the end of this year.
Looking at its price chart, you too will see that even after dropping below the listing price countless times, it has always picked itself up and soared - a trait that we expect the coin to carry on moving forward.
These say that it is a good long-term investment. But should we be buying EOS right now?
So, Is EOS (EOS) Worth Buying in 2021?
Most crypto analysts, crypto price prediction websites, and current EOS investors are confident that the EOS price will rise again and possibly break above its current all-time high. They argue that as soon as the crypto market stabilizes, EOS value will go up again and possibly resume their May 2021 highs.
More reasons why EOS is worth buying in 2021 can be traced to its 2021 EOS price rally. It showed that with the right market conditions, EOS would flourish. Looking into the future, there is an upcoming critical Bitcoin upgrade later in the year and a having event in 2024. Both are expected to incite the market and will most likely nudge EOS token prices upwards.
Don't Miss: EOS Price Prediction for 2025 and 2030
Why You Should Buy EOS (EOS)
1. EOS prices could rise again
EOS prices have always fought to escape price dips. It has fallen well below its listing price countless times and has always rebounded. This and the promise of its blockchain technology has the market convinced that it will always be uptrending.
2. Generate double income through staking
EOS can be staked both on the EOS network to validate crypto transactions and on some DeFi protocols. This presents you with the chance of earning doubly - from the token’s value appreciation and staking rewards.
3. Overall positive ROI
EOS has a net-positive return on investment (ROI), and all indicators point to the fact that its token prices will continue rising, which effectively makes it one of the best investments out there.
Risks Associated With EOS (EOS) Investment
- ETH 2.0 upgrade: EOS, like the rest of the Ethereum killers, can trace its origin and acceptability in the crypto industry to Ethereum’s rigidity. But now, there are signs that the more scalable ETH 2.0 network is coming. It is expected to reclaim much of its lost market share - which means loss of market for EOS.
- Stiff competition: EOS is also facing fierce competition from newer, more scalable, and more innovative smart contract-capable blockchains like Polkadot, Cardano, Polygon, Solana, and Chainlink.
Conclusion: Is EOS (EOS) Worth Buying?
Well, YES. Despite the fact that EOS token prices are currently circling, the dip future of EOS is seemingly bright, and crypto analysts expect the EOS altcoin prices to rise again. The coin will face fierce competition from Ethereum and supposed Ethereum killers, but history has shown us that EOS is a resilient crypto asset as it has always risen above each crisis, and that’s how it managed to sustain an uptrending ROI.
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