Given all of the cryptocurrency momentum we have seen in the past few weeks, it is not entirely surprising to see most markets cool off a bit. Especially the EOS price is taking a massive beating right now, which is not entirely surprising. The project has seen a massive value increase over the past few days, even though the underpinning technology is far from production ready.
EOS Price Correction was Direly Needed
It has been a crazy end of April for most of the cryptocurrencies out there. With Bitcoin and most altcoins going up in value by anywhere between 20% and 65%, it is only normal a price correction would set in sooner rather than later. For the EOS price, that correction may get pretty steep, as this currency has seen the highest gains or any cryptocurrency on the market. The only logical outcome is how it will also see the biggest correction of all currencies, although the jury is still out on that one.
With the EOS price losing 14.07% in value over the past 24 hours, things are not looking great for this altcoin. At the same time, the EOS price still sits comfortably above $18. Whether or not that is overvalued, remains to be determined, as the testnet for this project is the only major development to date. With no live net, live applications, or real-world use cases for this blockchain and its smart contracts, the current valuation makes zero sense to level-headed cryptocurrency enthusiasts.
It is also worth noting EOS is losing ground against both Bitcoin and Ethereum as of right now. With a 12.44% loss over Bitcoin and a 14.02% loss over Ethereum, the downtrend for EOS is in full effect. If this trend remains in place, the EOS price will undoubtedly drop to $15 and potentially even lower. That would also push its market cap to below $15bn again, which may still be extremely overvalued for the project in its current state of “usability” or lack thereof.
One thing that is rather impressive about EOS is how it generates over $4.7bn in 24-hour trading volume. Although over half of this volume is mainly driven by hype and FOMO rather than genuine interest in what the EOS project has to offer, it is still a noteworthy development regardless. Very few cryptocurrencies can generate such a volume, which certainly makes EOS a currency worth keeping an eye on moving forward.
As one would come to expect, South Korean exchanges play an integral role in the EOS trading market. Both Bithumb and Upbit generate over $650m in 24-hour trading volume, albeit neither of these platforms has the highest volume as of right now. Instead, that title belongs to OKEx’s USDT pair for EOS, which generated just over $782m in 24-hour trades. Huobi and Bitfinex complete the top five, albeit in less spectacular fashion than one might expect.
Whether or not the EOS price will recover quickly or continue to go down, is very difficult to predict as of right now. Both options are more than viable, and most people will agree EOS was due for a price correction at some point. Such spectacular gains can never go unpunished in the cryptocurrency world, for obvious reasons. It is unclear if this is just profit taking or people effectively dumping, but time will tell what the reasoning behind this current bearish pressure is.