On April 16, EOS price rose to a new high of $ 8.49 and the current structure of the market for the altcoin suggests that there is room for further uptrend.
EOS first made headlines during the 2018 ICO madness when its parent company Block.one raised a record $ 4 billion to develop the EOSIO software. In the past three months, the altcoin has almost tripled in value.
Data from Cointelegraph Markets and TradingView show that EOS ‘price has risen 245% since trading at a low of $ 2.43 on Jan. 27 and hit a multi-year high of $ 8.47 on April 16.
Three reasons for the price increase at EOS since the end of January are the introduction of the new EOS PowerUp model, the publication of the new EOSIO test network by Block.one and the announcement of a collaboration with Google Cloud to advance the integration of the distributed ledger technology with cloud Computing and Storage.
Protocol improvements accelerate price dynamics
The momentum for the EOS token took off in earnest in January when consensus was reached on integrating the new EOS PowerUp model to improve resource allocation.
Congratulations #EOS. A consensus has been reached and the new PowerUp model is active, which improves resource allocation. Let’s further strengthen EOS. https://t.co/sVkcg2XsfE
– block.one (@block_one_) February 24, 2021
The PowerUp model is the EOS network’s solution to the problem of transaction fees, which is currently one of the main problems facing the Ethereum Network (ETH).
With the new model, users can choose to pay a small fee to activate their account 24 hours a day with CPU and NET bandwidth that can be used to meet transaction requirements, or they can deposit their unused tokens to a percentage of the tune-in to receive fees generated by the public EOS blockchain.
As network congestion increases as global adoption increases, networks that offer acceptable solutions to high transaction costs and latency issues are likely to attract more users looking for a smooth user experience.
The rally is ignited by a new test network
One of the main sources of inspiration for EOS and its community was April 1st, when Block.one announced the release of its official EOSIO Testnet.
– block.one (@block_one_) April 1, 2021
According to the project website, some of the features included in the new test network include a distributed network with multiple nodes, one-click blockchain account creation, an embedded EOSIO explorer, and snapshots to ensure rapid synchronization of EOSIO test network nodes can have high uptime.
The new Testnet version is one of the most important releases of Block.one since the protocol started in 2018, giving a boost of confidence and EOS to community members who were concerned about the departure of Block.one’s technical director in January 2021 -Creator Dan Larimer.
The momentum for the protocol drained away in March due to an ongoing hackathon that led to the surprise release of the testnet on April 1 and triggered a significant price rally over the next two weeks.
Working with Google Cloud will add rocket fuel to the rally
EOS received an additional boost to price momentum on April 2nd when Google Cloud published an article explaining how it worked with EOSIO and revolutionized distributed ledger technology with confidential cloud computing.
We help @Block_one_ Develop and operate your distributed ledger technology with the scalability and reliability of our network, innovation in confidential computing, and leadership in #AI /. #ML and data analysis. Further information ⬇️ https://t.co/hfJd5BbpmM
– Google Cloud (@googlecloud) April 2, 2021
Google Cloud was also one of the main partners in the aforementioned hackathon and had the goal Support in “creating applications that will redefine the future of blockchain and cloud-based systems” that will help combine the transparency of the blockchain with the speed and security of cloud solutions.
Such an active relationship with a platform under the Google umbrella has given EOSIO increased validity, and filing an EOS Grayscale Trust in late January means institutional investors now have an easier way to access this growing ecosystem.
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