- EOS price has risen slightly in the past few days.
- The ecosystem remains under intense pressure as interaction fades.
- EOS DeFi total value locked (TVL) has dropped to $86 million.
EOS price has crawled back in the past few days as investors reflect on some positive ecosystem news. The coin retested the important resistance at $1, which was about 25% above its lowest level in November. Still, EOS remains about 68% below its highest point this year and 93% below the highest point on record.
Will this fallen angel recover?
EOS is one of the most prominent fallen angels in the crypto industry. A fallen angel is a financial asset that thrived during its peak and one that has fallen out of favour among investors. Some of the top fallen angels in the stock market include companies like Carvana, Blue Apron, and Beyond Meat.
EOS was once a fast-growing cryptocurrency. It was established by the same team that launched the biggest Initial Coin Offering (ICO) on record when it raised $4.4 billion. The team launched it to be a closer competitor to Ethereum, the biggest smart contract chain in the world.
However, EOS has not lived to its initial hype. Disagreements between Block and the EOS Foundation saw its leaders move ahead to launch Antelope earlier this year.
Find out how to buy EOS.
A closer look at EOS ecosystem shows that it is not doing well. According to DeFi Llama, the total value locked (TVL) in its DeFi ecosystem has crashed to about $86 million from its all-time high of $366 million. This ecosystem is dominated by EOS REX, which has a market dominance of 62.95%,
In-depth data compiled by DappRadar shows that the number of Unique Active Wallet (UAW) interacting with EOS dApps has been in a downward trend in the past few days. Upland, has had 150k UAW in the past 30 days, down by more than 1%. Other apps like AtomicAssets, AtomicMarket, and Wombat Dungeon Master have seen their interactions drop.
EOS price has risen after Binance listed EOS/USDT pair in its ecosystem. That listing could lea to more demand for the coin and its initiatives like Yield+.
EOS price prediction
The daily chart shows that EOS price has been in a strong downward trend in the past few months. In this period, it has remained below all moving averages. The coin has found substantial support at $0.8540, which was the lowest level this year.
EOS also seems to be forming a bearish flag pattern, which is usually a negative sign. Therefore, despite the recent rebound, I suspect that EOS price will have a bearish breakout amid ecosystem challenges.
Contributors
