On April 16 EOS price soared to a new high at $8.49 and the current market structure for the altcoin suggests there is room for further upside.
EOS initially made headlines during the ICO craze of 2018 when its parent company Block.one raised a record $4 billion in funding to create the EOSIO software and in the past three months, the altcoin has nearly tripled in value.
Three reasons for the rally in the price of EOS since late January include the launch of the new EOS PowerUp model, the release of the new EOSIO testnet by Block.one and the announcement of a collaboration with Google Cloud to advance the integration of distributed ledger technology with cloud computing and storage.
Protocol improvements power up’ price momentum
Momentum for the EOS token began to pick up in earnest in January as approached reaching consensus on integrating the new EOS PowerUp Model which is designed to improve resource allocation.
— block.one (@block_one_) February 24, 2021
The PowerUp Model is the EOS network’s solution to the issue of transaction fees, which is currently one of the major issues facing the Ethereum (ETH) network.
Under the new model, users have the choice of paying a small fee to power up their account for 24 hours with CPU and NET bandwidth that can be used to fulfill transaction needs or they can deposit their unused tokens to receive a percentage of the power up fees generated by the EOS public blockchain.
As network congestion increases as global adoption rises, networks that offer acceptable solutions to high transaction costs and latency concerns are…