EOS Transaction Count Soars While Price Tanks below $3
The EOS network is logging an impressive number of transactions, but there are indications of spam or artificial transaction inflation.
The EOS network is once again at the top in terms of daily transaction count, with an absolute record of 47,582,321 transactions in 24 hours, as per Blocktivity data. At the same time, the absolute record for transactions per second (TPS) is 3,996, while the network handled roughly 80 TPS in live mode.
This extremely high level of network activity suggests the transactions may be a form of spam or artificially inflated. Nothing stops participants from sending an unlimited number of transactions, boosting the statistics.
Based on EOS Network Monitor, as of 5:00 UTC on Monday, there were around 55 connected users. The usage of distributed apps is also relatively low, hardly accounting for more than 40 million transactions per day.
The curious coincidence is that other networks with a structure similar to EOS’s are reporting a vast number of transactions, all amid a lower point for the crypto assets market and usage. Recent leader WAX regularly reports more than five million transactions per day, with the project claiming all of them refer to the exchange of value in a gaming ecosystem. BitShares, the almost abandoned predecessor of EOS, sees more than two million transactions daily.
An exception is KIN, where reported transactions are not based on token movements but the usage of the app, which is not always connected to the Ethereum network.
STEEM also clocks more than 800,000 transactions per day, and TRON is ahead of Bitcoin. All these networks can, in effect, generate unlimited free transactions, which may not reflect actual usage.
While the transactions marked a record, older and more established coins saw their networks sit idle, with a few thousand transactions per day.
The level of network load does not correlate with market price. In the case of EOS, a deeper capitulation is observed when compared to most assets. EOS shed more than 15% of its value in the past seven days, becoming the biggest loser among the top 10 coins and ceding its position to Bitcoin Cash (BCH).
EOS traded at $2.85 as of 5:00 UTC on Monday on volumes of around $770 million equivalent. The most active pairs include EOS/BTC, EOS/ETH, and EOS/USDT, with the bulk of activity happening on Huobi Pro.
The price tanked after lead project developer and visionary, Dan Larimer, hinted at starting another venture, which sparked fears that EOS may be abandoned.
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