EOS rallies past Litecoin and became the fifth largest crypto.
Every crypto investor is pretty excited with the recent resurgence of the virtual currency market. Yesterday, major digital currencies posted substantial gains leading some to believe that the bear market could be finally over and that the long-awaited rally is about to happen.
However, each digital coin performed differently from each other; some cryptos gained way much more than the others. One such winner is the digital coin EOS, which posted a 45 percent price increase in just two days.
In fact, the cryptocurrency briefly breached the $9 mark during Thursday’s trading. The price is considered to be a two-month high, the highest price the coins traded since February this year. However, its price retracted a bit and is now trading in the $8.85 area.
Of course, the 45 percent surge in price for the digital coin also meant an equivalent increase in its market capitalization. During the two day surge, EOS’ market capitalization soared to $7.1 billion. Trading likewise picked up tremendously. Thursday’s trade volume alone stands at a staggering $2.5 billion, which is around six times bigger than the previous week’s $422 million.
EOS’ price rally even affected the ranking of the world’s largest cryptocurrencies in terms of market cap. Last March 18, 2018, EOS ranked ninth behind Litecoin (5th), Neo (6th), Cardano (7th), and Stellar (8th). However, with EOS’ updated market cap taken into account, the digital coin was able to dislodge the four coins mentioned and is now ranked fifth.
Valued at $7.1 billion as of April 12, 2018, EOS surpassed Litecoin’s $6.8 billion market cap and took over its fifth ranking. Meanwhile, the top four remain unchanged with Bitcoin still leading the pack followed by Ethereum (2nd), Ripple (3rd), and Bitcoin cash, which is still ranked fourth.
EOS’ recent price surge is attributed to its upcoming airdrop where developers promise to give additional tokens for free to existing holders of the cryptocurrency. This trend was likewise observed in the past where the coin’s price rose ahead of previous airdrops. This time, developers will be giving away one EOSDAC token to all accounts with at least 100 EOS balance at cutoff.
According to developers involved with the project, the cutoff will be at 1 a.m. UTC or 9 p.m. ET this coming Saturday, April 15. 2018. Given the approaching deadline, investors scrambled to increase their EOS holdings to meet the required amount and received the free coin.
In addition, the rally could likewise be a result of investors’ bullish stance on the crypto especially with the upcoming launch of the eos.ios platform this summer. Proponents say that the platform is even better than Etheream, which may result in a greater blockchain technology adoption.
Another positive development for EOS that might have contributed to the investing public’s positive sentiment on the currency is the multimillion deal with former Fortress hedge-fund manager Mike Novogratz. In January, a joint venture between EOS developer Block.one and Novogratz’s Galaxy Digital was announced, a deal valued at $325 million which will be used to put up a fund.
Of course, analysts warn that EOS might not be able to sustain the price surge. It is possible that digital currency’s post-airdrop price might not be as high as it is today.
Will Litecoin be able to take back the fifth spot for largest crypto soon?