Why is EOS (EOS) so Cheap?
Why is EOS so cheap, and will its prices ever rise? More importantly, should you be buying EOS when it is this cheap?
Well, a number of both internal (EOS network-based) and crypto market factors have played a key role in keeping EOS trading at relatively low prices. These range from its run-ins with the authorities, poor management of both the network and its parent company Block.One, and a poorly performing crypto market.
The low price shouldn’t, however, be mistaken for low value because EOS is currently the 28th most valuable cryptocurrency project with a market capitalization of close to $3.5 Billion. Currently trading at $3.66, EOS is more valuable than the MAKER token that is currently trading around $2,559. It also has double the market cap of DASH Coin - which is currently trading at $144. This is because crypto valuation is a game of numbers and EOS currently has more coins in circulation (1 Billion) than both MAKER (1 million MKR tokens) and DASH (18.9 Million Dash coins).
In this EOS investment guide, we will be digging deeper into why EOS is cheap, looking at some of the factors that keep it trading at relatively low prices and helping you decide if EOS is a good investment.
But before going into details on what is keeping EOS prices low, we first need to take a look at its price history.
EOS (EOS) Price History
EOS coins started trading in mid-2017, and CoinMarketCap records the altcoin’s earliest price as $2.7 on 2nd July 2017. It started by dipping and falling to $0.5 by October that year before being swayed by the 2017/18 crypto market-wide rally and rising to $16 in the first week of January 2018.
As the rest of the market took a hit in the early months of 2018 and shed most of the 2017 gains, EOS did the opposite. It rallied and set the current all-time high of $22.89 at the end of April 2018 before eventually being pulled down by the sinking crypto market and ended the year trading around $2.
In 2019 and 2020, EOS performed dismally and had a rough time sustaining its token prices of $8. It was not until early March 2021 that it started rallying again and reached $14.88 before the crypto market rally that carried it this high reversed suddenly on 19th May.
In the last 30 days, EOS prices have been ranging between $3.16 and $4.41.
So, why is EOS trading at these relatively low prices?
Why is EOS (EOS) so Cheap?
At the moment, EOS is trading at relatively low prices because the entire crypto market is currently stuck at the dip. This was occasioned by China’s reiteration of the Bitcoin ban in the Asian country and Elon Musk’s criticism of the energy intensiveness of the proof of work consensus mechanism used on the Bitcoin blockchain.
And in acknowledgement of the fact that the definition of the word cheap is relative, we add that EOS is considered cheap because it has done much better in the past. It is classified as trading cheaply because the crypto market knows how high it can reach.
This then begs the question; before the current crypto market crisis, what was keeping EOS prices low?
What is keeping its prices low?
Low demand for EOS coins: Since its launch, EOS has dipped below its launch price countless times. And though it has a net positive ROI, it has only managed to grow its listing price by around 254% to date. In the year to date, it has only earned its investors about 143%. Most speculative investors consider this growth rate to be quite low and, therefore, choose to keep away from EOS investments.
Controversial past: EOS’s past is riddled with controversies that are also believed to have contributed greatly to keeping the altcoin prices low. It started with a $24 Million fine from the SEC before deep cracks within Block.One (the company that developed EOS blockchain and token) emerged.
Different factions of this management team held varied visions of the blockchain’s future, which delayed its launch and forced investors to sue the company - asking for refunds. And just when everyone thought the management wars were over - EOS co-founder and of the leading crypto and blockchain technology innovators in the world - Danial Larimer resigned from Block.One and abandoned the EOS project in January this year.
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Should I Buy EOS (EOS) While it is Still Cheap?
Despite the many challenges facing EOS, it has always maintained positive ROI, and the crypto market is convinced that it will continue posting profitable price movements that make it a good investment.
But to better answer this question, we have to look at the likelihood of EOS coin prices rising again in the near future - the chief trait that makes the altcoin worth buying at the current prices.
First, we must observe that its current total token supply allows the EOS price to rise as high as it possibly can without being limited by a market capitalization. This implies that with a supply of 1 Billion tokens, EOS can easily reach $100 and not take 10% of the crypto industry market share.
The fact that it is one of the most widely used blockchain technologies tells us that it has a huge potential of escaping these low prices. And this makes a good buy as it sets you for massive profitability when it starts gaining.
Is EOS (EOS) Worth Buying?
EOS is worth buying because it currently is one of the most promising blockchain technologies around. It is faster and more scalable than Ethereum or Bitcoin and is more established and, therefore, more trusted than most of the other blockchains fighting to replace Ethereum.
EOS is also worth buying because it maintains an overall positive return on investment. Further, it has always found a way to bounce back to profitability, even after the most disastrous controversies, and analysts expect it to carry on with this resilience.
Will EOS (EOS) Bounce Back?
It is highly likely that EOS prices will eventually bounce back and rise to unprecedented heights. Most crypto analysts and price prediction websites are especially convinced that EOS has all it takes to resume its May 2021 uptrend and stretch it above $100 in the next few years.
Among the factors that they believe will play the biggest role in driving this rebound and pushing EOS token prices to these highs include the maturity of the crypto industry, which they then believe will incite a spike in demand for EOS coins. They also expect the recovery and possible rally of the crypto market to also play a key role in pushing up EOS token prices.
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Conclusion: Should You Buy EOS (EOS)?
EOS is only cheap now because the mid-May Bitcoin crash disrupted its price rally. And despite the fact that it is trading above its listing price, it is perceived as being cheap because the crypto community understands its potential and know-how high up it can reach.
Moving forward, crypto analysts and price prediction websites expect EOS token prices to rise and possibly break above $100. EOS is currently one of the most used blockchain technologies, and crypto industry observers expect the coin to attract even more users with its unmatched scalability and transaction speeds. And these are the factors that make EOS worth buying in 2021.
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