The EOS digital asset is once again becoming something of a phenomenon in the crypto space. After a few days of high-bidding daily auctions, the market price of EOS also moved up. The token climbed to position 7 on CoinMarketCap, after growing by 16% in an overall dropping market, reaching $7.20. On a weekly basis, the asset is up 40% from the recent lows. Trading volumes picked up to the highest level in almost a month.
The two possible reasons behind the rise are recent announcements on project development. One of the major partnerships includes an agreement with FinLab AG, a major European fintech firm. Block.One and the German company have agreed to a $100 million development fund to support outreach and future EOS projects.
However, the building of distributed apps on EOS is still in the future, as the project has not launched its main net yet.
The other boost of positive news came from the release of a new technical white paper explaining how the EOS network would scale to accommodate distributed apps. So far, the fate of distributed computing has shown that it quickly becomes too hefty for the network, and cannot work without at least some form of centralization. So far, distributed apps remain a relatively new phenomenon and will have to prove their mettle against traditional software.
After a recent bottom price below $5, EOS has seen predictions of once again reaching $30. This is not a far stretch from the $20 seen in the past, but warnings still apply, especially given the quickly falling trading volumes, as well as the rumors of price manipulation.
And while the recent spike in prices may cause new enthusiasm, EOS continues to raise red flags. With around 100 daily auctions left, it remains to be seen whether the price relationship between the auction and market prices remains strong. Usually, a few days of successful high-price auctions lead to an increasing market price.
The recent price spike saw EOS/BTC rise as one of the best-traded pairs on Binance in the past day. However, this position is only temporary, and volume recovery is not yet established. EOS depends a lot on Asian trading, but the Binance community is international and reflects a more global sentiment toward EOS.