While the overall crypto market has been on the rise for the last few days, EOS has outperformed when compared to other major cryptos. So what is driving this bull-run? There are some in crypto circles who feel that this is a pump, and it will end pretty soon. However, a deeper analysis of this crypto reveals that there are some strong fundamental factors driving its value. Let’s go through some of them.
One of the most probable reasons behind this rise is the recent partnership between EOS (EOS) and FinLab AG, a European financial technology company. Under this deal, FinLab will provide $100 million to help in the development of new projects on the EOS blockchain. This is a big deal and could open the EOS ecosystem in coming days, and consequently shore up its value. That’s because the primary factor behind the value growth of a smart contracts platform is the development of Dapps. This could be the reason why investors are flocking into EOS as they anticipate an explosion of Dapps on the EOS ecosystem, and the future growth of its value.
Another probable factor that could be pushing up EOS is the release of a new whitepaper. The EOS team has released a new whitepaper and everything about it is promising. In this whitepaper, the EOS team explains in detail how they will deal with the issue of scalability as the number of Dapps increases on the ecosystem. This is probably getting investors excited considering that scalability is one of the problems that faces many smart contract platforms, such as Ethereum. Investors may be anticipating a surge in the value of EOS if it can clearly demonstrate how it will deal with the issue of scalability once and for all.
There is also the possibility that investors perceive it as highly undervalued. With the two factors we have analyzed above, investors may be under the impression that at under $10, EOS (EOS) is highly undervalued. This could be driving demand, and the same is translating in the current price surge. It’s the same thing that happened to Bitcoin a few days ago. When bitcoin hit lows of $7600, buyers started jumping in, since the general impression was that it had hit its lows, and that price was a great entry for speculative buying. It could be a similar thing for EOS. This crypto recently hit lows of $5, which might have triggered a buying frenzy from speculators.
Of all the above possibilities, the most likely driver of EOS’s current price rise is the partnership with FinLab AG. That’s because this deal is a signal to buyers that big money sees potential in this project, even though it’s yet to launch its main net. This may be causing buyers to buy up this crypto, with the expectation that once the main-net is launched, this project will moon.
Whatever the case, EOS (EOS) comes across as a sound project that has a good future!