Over the past three days, the EOS cryptocurrency is up almost 100%. The EOS cryptocurrency has grown less actively since the beginning of the year than other altcoins. But the latest news kicked off growth. At the same time, its price exceeded $ 12 for the first time in the last three years. In addition, the current structure of the altcoin market suggests that there is potential for further growth.
EOS and Ethereum Classic overtook DOGE
Ranked in the top 5 largest assets, DOGE cryptocurrency has traditionally been in the spotlight of the media and traders this week. Despite the excitement in demand, Dogecoin quotes rose 80% over a five-day business, during the same period EOS showed 110% growth, and Ethereum Classic (ETC) an impressive 300%.
The reason for the doubling of the cost of EOS was the protocol changes prepared by the blockchain developers Block.one.
As the blockchain sector continues to evolve, protocol updates required from time to time. To ensure projects keep up to date with the latest developments and provide users with the best possible user experience. So, the price of EOS has increased after the recent protocol update.
The innovations intended to multiply staking rewards and financial incentives for block producers.
The course reacts positively to the news due to the fact that staking can “remove” some of the coins from the market. But this will require an attractive annualized profit percentage.
The network will also increase the level of programmed inflation. From it, payments go to block producers, who add tokens to the stacks. From the current level of 1%, inflation should change by a figure in the range of 1.2% -3.8%. This change is necessary for additional motivation for those who produce blocks and vote on the development of the project. The Prysm development team believes a rise to 3.8% is needed. But in the community there is an opinion that smaller amount will be enough to attract money to the stacks.
The advance payment of an account for developers was another reason for the growth of the EOS course. The implementation of the PowerUP model allows the creators of smart contracts to fix the cost of resources for 24 hours, rather than pay commissions for each transaction. This become an increasingly attractive option as most traders are looking for ways to avoid high transaction fees and network congestion on the Ethereum network.
Improvements to the protocol always increase the price action.
Also, the growth of altcoin was influenced by the fact that the dominance of Bitcoin continues to decline.
With the overall cryptocurrency market heating up and 2016 projects like Litecoin (LTC) and Ethereum Classic (ETC) reaching new heights, EOS is one large-cap blockchain project that could continue to benefit as promoting the cryptocurrency bull market.
Moreover, some analysts admit that the EOS network can compete with Ether. Or even push it out in the ranking of platforms that are most convenient for launching decentralized applications.