- EOS/USD gains 5% on a day-on-day basis on Tuesday.
- Five million USDT tokens have been swap-chained to EOS blockchain.
EOS, now the 7th largest digital asset with the current market value of $3 billion, gained 5% in recent 24 hours to trade at $3.15 at the time of writing. EOS is one of the best-performing coins as positive cryptocurrency market sentiments are supported by EOS-related fundamentals.
Bitfinex moves $5 million in USDT to EOS blockchain
Cryptocurrency exchange Bitfinex and a decentralized trading platform EOSFinex successfully completed the cross-chain conversion of five million USDT into the EOS blockchain.
The platforms believe that this move will protect EOS-based decentralized applications (dApps) from high price volatility typical to digital assets. According to the statement, the protocol is already used by 49 of the 100 leading dApps.
The company’s next goal is to fully launch EOSFinex on the main network.
Currently, USDT operates on Bitcoin, Ethereum, TRON, Algorand and Blockstream’s Liquid blockchains.
EOS/USD, the technical picture
On a daily chart, EOS/USD is changing hands at the middle line of a Bollinger Band. This line creates the initial support for the coin. Once it is out of the
On the upside, strong resistance is created by SMA50 (Simple Moving Average) daily currently at $3.43. We will need to see a sustainable move above this handle for the extended recovery towards $4.00.
EOS/USD, daily chart
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EOS SUFFERED A HUGE DAPP USER DROP OUT, LATEST REPORT FINDS
- EOS Daily Active Users Haven Fallen 80%
- Users Double But Retention Rate Poor
- Key dApp Growth Areas
The latest annual dApp Market Report by Dapp.com says that the number of daily decentralized application (dApp) users on EOS has crashed 80% since last November.
EOS DAILY ACTIVE USERS HAVEN FALLEN 80%
Prior to November, EOS was the blockchain with the largest number of daily active users. There was an average of nearly 80,000 (79,749) users using dapps on EOS every day. Ever since EIDOS has launched, EOS’s DAU has dropped dramatically to an average of 15,363, which is an 80% decrease.
This is made worse by the fact that daily active EOS dApps have also fallen by as much as 30% since November too. Overall, this demise is likely due to the fact that a number of EOS’ leading dApps, including EOSbet and Karma, left the blockchain to join Wax’s platform instead.
However, what’s interesting is that, in terms of transaction value, EOS generated a volume of almost $5
EOS also had the highest proportion of active dApps in 2019 despite the crash, at 479 out of 493, or 97%. Ethereum had the lowest proportion of active dApps at just 62%, although some of this can be accounted for by early dApps which have fallen out of usage.
USERS DOUBLE BUT RETENTION RATE POOR
According to the report, the number of active dApp users in 2019 is 3.11 million, compared to 1.48 million in 2018. Whilst this is over double the total number of users, 2.77 million of these were new users in 2019. Only 348,000 currently active users were also active in 2018.
This gives a not particularly impressive retention rate of 23.5%, or just 11% of current users who have been around since 2018.
However, the dApp landscape of today is much different from that of 2018. With an increase in active dApps across the board, one assumes that today’s users have several more compelling reasons to stick around.
KEY DAPP GROWTH AREAS
One of these reasons is the growth in Decentralized Finance (DeFi) dApps. Excluding decentralized exchanges, the number of DeFi dApp users has grown by 610%, and the transaction volume has increased by 251%.
Other areas in which dApps user and volume growth has increased the most are gambling, high-risk dApps, and gaming products.
Daily Tech Analysis for EOS -18/01/2020
EOS gained 1.52% on Friday. Following on from a 1.94% rise on Thursday, EOS ended the day at $3.8961.
A bullish start to the day saw EOS rise to a late morning high $4.0500 before hitting reverse.
Coming up against the first major resistance level at $4.0163, EOS slid to an early afternoon intraday low $3.7334.
Steering clear of the first major support level at $3.5894, EOS broke back through the first major resistance level to a late intraday high $4.0623.
A second pullback to $3.7 levels and into the red was short-lived. EOS found support late in the day to close out in the green.
At the time of writing, EOS was up by 1.1% to $3.9390. A mixed start to the day saw EOS rise from an early
EOS left the major support and resistance levels untested early on.
For the day ahead
EOS would need to move back through to the morning high to $4.00 levels to support a run at the first major resistance level at $4.0611.
Support from the broader market would be needed, however, for EOS to breakout back through to $4.00 levels.
Barring a broad-based crypto rally, Friday’s high $4.0623 and first major resistance level would likely cap any upside.
Failure to move back through the morning high to $4.00 levels could see EOS hit reverse.
A fall back through to sub-$3.90 levels would bring the first major support level at $3.7322 into play before any recovery.
Barring an extended sell-off, however, EOS should steer clear of the second major support level at $3.5684.
Looking at the Technical Indicators
Major Support Level: $3.7322
Major Resistance Level: $4.0611
23.6% FIB Retracement Level: $6.62
38% FIB Retracement Level: $9.76
62% FIB Retracement Level: $14.82
EOS price analysis: EOS/USD creeps above the 20-day Bollinger Band
- The bulls are aiming for the $3.50 psychological level.
- The Elliott Oscillator shows sustained bullish sentiment.
EOS/USD daily chart
Following a bearish Monday, EOS/USD bulls jumped back into the driver’s seat and took the price up from $3.10 to $3.29. EOS/USD is trending in an upwards channel formation and has crept above the 20-day Bollinger Band, indicating that the asset is overpriced. This, along with the fact that the Relative Strength Index (RSI) has crept into the overbought zone, both hint that bearish correction may be round the corner. Both the Moving Average Convergence/Divergence (MACD) and Elliott Oscillator indicate sustained bullish sentiment.