Driven by BTC, the prices of mainstream crypto assets such as ETH and LTC are flying fast. The former “blockchain 3.0” means that EOS is “I will not move.”
As of 1 pm on January 4th, non-small data shows that BTC is quoted at US$33,151, an increase of 364% in the past year, and ETH is quoted at US$1,023, an increase of 687% in the past year. At the same time, EOS quoted at 2.97 US dollars, an increase of 16.1% in the past year.
The EOS market performed poorly. Liu Wei (pseudonym), who used to work for the EOS.IO network super node, believes that EOS has been broken. “In the past two years, EOS-based side chains have continued to appear, which has dispersed community power and failed to attract capital. And user attention, forming a vicious circle.”
Based on EOS’s side chains BOS, Telos, and EOSForce, it is difficult to say that they have achieved success at the landing level in the past two years. This year, DeFi has exploded on Ethereum. Only Defibox and DeFis on EOS are still popular. The lock-up value of the two has increased. Up to only 30 million US dollars. The value of EOS’s entire network of DeFi lock-up is only 308 million, which is not as good as Cream, the sixteenth-ranked lending agreement on Ethereum.
In 2019, EOS became a short-lived in the DApp market, and the high-profile Voice was gone. In 2020, it lost the opportunity of DeFi, and the long-term fluctuation was around $3. EOS is disqualifying from the ranks of mainstream assets.
Liu Wei hates iron and steel. In his opinion, the EOS ecosystem is not good and the founder Brendan Blumer (BM)’s letting go of the ecology is not unrelated. “It is still the same idea as BTS (BitShares). Now, he is going to do other things.”
Liu Wei spit out a prediction, “The ending of BTS is the ending of EOS.”
EOS market value fell out of the top 10
“I found a shocking secret. The price of EOS was $2.6 on January 1, 2019, $2.6 on January 1, 2020, and $2.6 on January 1, 2021.” Some investors discovered that EOS was sold at $1 every 3 years. The price on January 1st stayed at 2.6 US dollars surprisingly similar.
EOS seems to be the EOS of three years ago, but Bitcoin has broken through all-time highs time and time again, and Ethereum has returned to a sharp rise channel.
Non-small data shows that on January 3, BTC rose to 34,762 US dollars, an increase of 73% compared to the high of 20,000 US dollars in 2017, an increase of 364% in the past year, and a circulating market value of 615.96 billion US dollars, surpassing Internet giants. Alibaba.
ETH is also skyrocketing, approaching its all-time high. On January 4, ETH rose to a maximum of 1,160 U.S. dollars, which was a difference of 262 U.S. dollars from the high of 1422 in 2017. It has increased by 687% in the past year and has a circulating market value of 116.6 billion U.S. dollars. According to media comparison statistics, the market value of Ethereum ranks 76th among global assets, surpassing companies such as Citigroup and Sony.
BTC and ETH are often hailed as representatives of blockchain 1.0 and 2.0. When EOS debuted, under the banner of commercial, high performance and scalability, it was regarded as the representative of “Blockchain 3.0”, and the TPS could reach 6000+.
EOS has had a bright moment of currency price. At the end of 2017, EOS had risen to a maximum of US$23, ranking among the top five in circulation market value. However, the current market value of only 2.7 billion U.S. dollars can no longer keep EOS in the top five of the market value rankings. Projects such as Chainlink (LINK), ADA (cardicoin), and Polkadot (DOT) are on the top.
After Stellar Lumens (XLM) and BSV, EOS ranks 13th in market capitalization.
EOS is disqualifying from the ranks of mainstream assets.
After entering 2021, driven by the broader market, EOS prices finally began to fluctuate upwards. Starting from January 1st, the highest rise from 2.59 yuan to 3.04 US dollars, an increase of 17%. Some crypto-asset investors joked, “Holding EOS has emptied the entire bull market” and “EOS has started to rise. Has this round reached its peak?”
Of course, there are also other investors who believe that EOS, which has been trading sideways or always falling all the year round, has risen, indicating that the bull market is more confirmed. The rise of EOS seems to be an accident, and the ridicule of investors also revealed a certain dislike for EOS.
Why did EOS perform poorly?
Liu Wei (pseudonym), who worked for a super node in the EOS network, believes that EOS was broken from the beginning.
He explained that the bubble that was blown during the 2017 Super Node election was too big, leading to excessive expectations from the outside world; in addition, the community was not very united. Developers did too many side chains based on EOS, which distracted the power of the community. Up, there is no user and capital attention, which forms a vicious circle, which ultimately leads to a slack performance in the market today.”
Ethereum uses its own development to prove that only when applications can continue to grow on the blockchain network can it form an ecological effect. When developers are willing to build applications, when users are willing to use these applications, the network can gather value.
DApps have exploded on the EOS network, but applications dominated by games and gambling scenarios are not sustainable. The side chain that is as popular as DApp on this network is the side chain. The side chain Telos that stabilizes fees and eliminates the cost of creating accounts, the corporate and financial side chain Worbli, the BOS that focuses on business applications, and the governance side chain EOS Force ( EOS Force) and so on.
The original intention of the birth of these side chains is similar to the concept of EOS when it first benchmarked Ethereum, and they all claim to be making up for the shortcomings of the network.
Unlike Ethereum paying Gas fees to use the network, EOS needs to be pledged in exchange for network resources such as CPU and RAM. These costs are not low. When users register for an account, they also need to pay a certain amount of EOS to get resources. For example, when registering an account on the TokenPocket wallet, the user needs 2EOS.
The emergence of EOS sidechains, some have solved some of the pain points of network use. For example, there are still BOS sidechains maintained by developers. It went live on the mainnet in January 2019. It is allocated to each user by adjusting parameters. Free resource quota to reduce the cost of using DApp. The side chain also plans to connect DApps on Ethereum and other public chains to the EOS community through cross-chain, to be a free port of DApps.
Currently, BOS has launched the centralized exchange Tiger Symbol, the decentralized exchange Whale Exchange and Newdex. At 2 pm on January 4, BOS was quoted at $0.00184, a decrease of 88% in the past year. Regardless of the price of the currency, the scale of the application and the direction of the network, BOS cannot be considered successful. The cross-chain bridge has not allowed more new forces to “cross the bridge” to the EOS network.
The internal improvement of the order did not attract external developers, and EOS did not seize the new opportunity of DeFi this year.
According to OKLink data, as of January 4, the lock-up value (TVL) of DeFi on ETH was US$26.96 billion, and the lock-up value of DeFi based on EOS was only US$303 million.
At the same time, the lending platform Cream ranked 16th by TVL on Ethereum, with a value of 318 million US dollars. In other words, the TVL of DeFi on EOS is not as good as the 16th project on Ethereum.
Some analysts believe that EOS’s backwardness in the DeFi sector is due to the lack of supporting infrastructure. Taking the stablecoin tool as an example, there is DAI on Ethereum, and USDT issued based on ETH has reached 13.56 billion U.S. dollars. It was not until September 2020 that Tether issued 90 million USDT on EOS. In contrast, another public chain, TRON, has USD 7.8 billion in circulation on the chain.
The EOS-based DeFi protocol is supported by Defibox, the DEX and the mortgage loan agreement Defis. On January 4, Defibox’s locked-up capital was 18.75 million U.S. dollars, Defis’s locked-up capital was 10.46 million U.S. dollars, and most of the rest were less than tens of millions of dollars.
DeFi is dying on EOS, and game applications that were once smashing in the past have not developed. Dappreview data shows that the highest daily active user on EOS is Bluebet or a gambling agreement. According to data on January 4, the application has 117 daily active users and a daily transaction volume of US$1.133 million.
At present, there are a total of 697 DApps on EOS, but only about 200 have more than 50 daily active users. Dappreview data shows that on December 31, the daily transaction volume of the entire EOS network was US$4.11 million, and at the same time, the daily transaction volume of the entire Ethereum network was US$340 million.
The market performance and ecological construction have all fallen, and Liu Wei more attributed the current situation of EOS to the poor operational thinking of BM.
He explained that BM is still engaged in EOS according to the idea of BTS (BitShares). After the mainnet goes online, it will be handed over to the community. “The ending of BTS is the ending of EOS.” He believes that with the departure of the developers, it is not ruled out. EOS has gradually faded out of the market. “Even though the EOS network has been born for more than 2 years, it is still in its early stages, and the public chain community needs a leader to build consensus at the beginning.”
Voice failed to “support” EOS in its high-profile debut
In fact, EOS parent company Block ONE has also struggled. In 2019, the community announced that it would develop a social product Voice on EOS. In February last year, Voice was officially launched.
On Voice, content creators can post text, videos, and pictures to share their work, and community members can communicate and discuss with real people. From a formal point of view, if EOS is a replica of BTS, Voice is like a replica of Steem.
In June 2020, Voice also caused controversy because of requiring users to conduct KYC. At that time, the Voice platform’s statement on strict control of KYC focused on the authenticity and openness of the content. “KYC can screen out robots that release information based on business needs.” After this round of controversy, Voice lost its voice.
According to the official website, Voice currently has 26 communities and the largest crypto writer community has 847 people. As of 5 pm on January 4, the latest news is the “Kaspersky 2021 Security Bulletin Encryption Insights. Voice is currently open to Chinese users.
Voice is still used by some people, but as a social application, it is too small compared to giants such as Twitter, Facebook, and WhatsApp. Although the seal of “blockchain” makes Voice look different, but in the current era of “blockchain and finance are more suitable”, DeFi is very lively, and Voice failed to make enough voices to attract the attention of capital and users. .
From the outside, Block ONE’s investment in EOS is still not enough.
In the early days of the sidechain BOS mainnet, developers complained, “I am a programmer. Although I dare not say how well the code is written, I also want to submit some of my code for EOS, but BlockOne rarely accepts submissions from programmers. Code, not to mention rewards for me.”
Block ONE is not short of funds. When EOS appeared under the title of “Blockchain 3.0” in 2017, under the leadership of the parent company, EOS raised funds for a year, and raised more than 4 billion US dollars in total.
In contrast, Polkadot, whose market value has rushed to the top 6 recently, its founder Gavin Wood has been leading the development of the project, and finally achieved network operation in 2020 after 5 years. In the past 5 years, the Web3 Foundation, which is leading the development of Polkadot, has conducted 3 rounds of financing with a total amount of less than 300 million US dollars.
Where are the funds raised by EOS going? Over time, some clues were exposed.
According to EOS media EOS Go, Christian Angermayer, the shareholder of EOS parent company Block.One, stated in the OMR podcast released on September 16, 2020 that Block.One holds more than $2.5 billion worth of bitcoin. At that time, the price of BTC was approximately $10,500, which meant that Block.One held more than 240,000 BTC.
Block.One CEO BM also said on Twitter that Block.One holds far more than 140,000 BTC. EOS holders expressed their dissatisfaction with the voice of “Isn’t buying pie? What development?”
Since BTS in 2014, BM has undertaken 3 projects, BTS, Steem and EOS. At present, it seems that only EOS of these three projects can barely maintain their face. However, many people in the community have lost patience with EOS. Liu Wei left the super node where he used to work. “Currently, I only pay attention to BTC. EOS hasn’t paid attention for a long time.”
Not long ago, an EOS community engaged in a wave of online marketing in the name of self-help and established a WeChat group. It seemed that they wanted to listen to suggestions. Someone wanted to see if the EOS community wanted to “do things”, but it turned out that it was eventually reduced to Small talk.
When mainstream currencies such as BTC, ETH, and LTC took turns to rise, the voices in the group discussing buying these assets far exceeded EOS, and people seemed to have forgotten the theme of the group discussion “self-help”.
