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Driven by BTC, the prices of mainstream crypto assets such as ETH and LTC have soared. EOS, once the representative of "Blockchain 3.0", is "I remain unmoved."
As of 1:00 p.m. on January 4, Feixiaohao data showed that BTC was quoted at $33,151, up 364% in the past year, and ETH was quoted at $1,023, up 687% in the past year. At the same time, EOS was quoted at $2.97, up 16.1% in the past year.
EOS market performance is poor. Liu Wei (pseudonym), who once worked for the super node of EOS.IO network, believes that EOS has been ruined. "In the past two years, side chains based on EOS have continued to emerge, which has dispersed the power of the community and failed to attract capital and user attention, forming a vicious cycle."
It is hard to say that the EOS-based sidechains BOS, Telos and EOSForce have achieved success in the past two years. This year, DeFi has exploded on Ethereum. Only Defibox and DeFis are still popular on EOS, and the combined locked value of the two is only 30 million US dollars. The locked value of DeFi on the entire EOS network is only 308 million, which is less than Cream, the 16th-ranked lending protocol on Ethereum.
In 2019, EOS was a flash in the pan in the DApp market. The high-profile Voice came to nothing. In 2020, it lost the opportunity of DeFi again. The long-term fluctuation is around $3. EOS is losing its status as a mainstream asset.
Liu Wei is a bit disappointed. In his opinion, the poor EOS ecosystem is closely related to the founder Brendan Blumer’s (BM) letting go of the ecosystem. “It’s the same idea as BTS (BitShares). The mainnet launch is handed over to the community, and he is doing other things.”
Liu Wei made a prediction, "The ending of BTS will be the ending of EOS." EOS's circulating market capitalization fell out of the top 10. "I discovered a shocking secret. The price of EOS was $2.6 on January 1, 2019, $2.6 on January 1, 2020, and $2.6 on January 1, 2021." An investor posted a picture in a social group. The picture shows the price of EOS on January 1st in the past three years, which has remained at a surprisingly similar $2.6. EOS annual K-line trend
EOS seems to be the same EOS three years ago, while Bitcoin has broken through historical highs again and again, and Ethereum has returned to a sharp rise channel.
According to Feixiaohao data, on January 3, BTC rose to a high of $34,762, a 73% increase from the high of $20,000 in 2017 and a 364% increase in the past year. Its market capitalization was $615.96 billion, surpassing the internet giant Alibaba.
ETH is also soaring rapidly, approaching its historical high. On January 4, ETH rose to $1,160, $262 short of its 2017 high of $1,422, a 687% increase over the past year, with a circulating market value of $116.6 billion. According to statistics from some media, Ethereum's market value ranks 76th among global assets, surpassing companies such as Citigroup and Sony.
BTC and ETH are often praised as representatives of blockchain 1.0 and 2.0. When EOS debuted, it was regarded as the representative of "blockchain 3.0" under the banner of commercial use, high performance, and scalability, and its TPS could reach 6000+.
EOS has had its moments of glory. At the end of 2017, EOS had risen to $23, ranking in the top five in terms of market capitalization. But now, with a market capitalization of only $2.7 billion, EOS can no longer remain in the top five in the market capitalization rankings. Chainlink (LINK), ADA (Cardano), Polkadot (DOT) and other projects have risen to the top.
After Stellar (XLM) and BSV, EOS ranks 13th in market capitalization.
EOS is losing its status as a mainstream asset.
After entering 2021, driven by the overall market, the price of EOS finally began to fluctuate upward. Starting from January 1, it rose from 2.59 yuan to 3.04 US dollars, an increase of 17%. Some crypto asset investors joked, "Holding EOS means missing out on the entire bull market", "EOS has started to rise, has this round reached its peak?"
Of course, there are other investors who believe that the rise of EOS, which has been sideways or always falling for many years, shows that the bull market is more confirmed. The rise of EOS seems to be a surprise, and the ridicule of investors also reveals a certain pessimism about EOS.
Why is EOS performing poorly?
Liu Wei (pseudonym), who once worked for a super node in the EOS network, believes that EOS was ruined from the beginning.
He explained that the bubble that was blown up during the super node election in 2017 was too big, which led to excessive expectations from the outside world. In addition, the community was not very united, and developers built too many side chains based on EOS, which dispersed the community's strength. "The application was not developed, and there was no user and capital attention, which formed a vicious cycle and ultimately led to the poor performance in the market today."
EOS's total DeFi TVL is less than that of Ethereum's single project . Ethereum has proved through its own development that only when applications can continue to grow on the blockchain network can an ecological effect be formed. When developers are willing to build applications and when users are willing to use these applications, the network can gather value.
The EOS network has had a boom in DApps, but applications that are mainly based on gaming and gambling scenarios are not sustainable. The sidechains on the network are comparable to DApps in popularity. The community has seen the emergence of Telos, a sidechain that stabilizes fees and eliminates the cost of creating accounts, Worbli, an enterprise and financial sidechain, BOS, which focuses on business applications, and EOS Force, a governance sidechain, etc.
The original intention of the birth of these side chains is similar to the concept of EOS when it was benchmarking Ethereum. They all claim to be making up for the shortcomings of the network.
Unlike Ethereum, where you pay gas fees to use the network, EOS requires staking EOS in exchange for network resources such as CPU and RAM, which is not cheap. When users register an account, they also need to pay a certain amount of EOS to obtain resources. For example, when registering an account on the TokenPocket wallet, users need 2EOS.
The emergence of EOS sidechains has solved some pain points in network usage. For example, the BOS sidechain, which is still maintained by developers, was launched on the mainnet in January 2019. By adjusting parameters, it allocates free resource quotas to each user to reduce the cost of using DApps. The sidechain also plans to connect DApps on Ethereum and other public chains to the EOS community through cross-chain, aiming to be a free port for DApps.
Currently, BOS has launched on the centralized exchange Hoo, the decentralized exchange Whale Exchange and Newdex. At 2 pm on January 4, BOS was quoted at $0.00184, a drop of 88% in the past year. Whether in terms of currency price, application scale or network direction, BOS is not a success, and the cross-chain bridge has not allowed more new forces to "cross the bridge" to the EOS network.
The internal improvements of the order did not attract external developers, and EOS did not seize the new opportunity of DeFi this year.
OKLink data shows that as of January 4, the locked value (TVL) of DeFi on ETH was US$26.96 billion, while the locked value of DeFi built on EOS was only US$303 million.
At the same time, the 16th TVL on Ethereum was the lending platform Cream, with a value of $318 million. In other words, the TVL of DeFi on EOS is not as high as the 16th-ranked project on Ethereum.
Some analysts believe that EOS's lagging behind in the DeFi sector is due to the lack of supporting infrastructure. Take the stablecoin tool as an example. Ethereum has DAI, and the USDT issued based on ETH has reached 13.56 billion US dollars. It was not until September 2020 that Tether issued 90 million US dollars of USDT on EOS. On the other hand, another public chain TRON (TRON) has 7.8 billion US dollars of USDT in circulation on the chain.
The DeFi protocol based on EOS is supported by Defibox, a DEX, and Defis, a mortgage lending protocol. On January 4, the locked funds of Defibox were $18.75 million, and the locked funds of Defis were $10.46 million. Most of the others were less than 10 million US dollars.
DeFi is dying out on EOS, and the once popular gaming applications have not developed. Dappreview data shows that the application with the highest daily active users on EOS is Bluebet, which is also a gambling protocol. As of January 4, the application had 117 daily active users and a daily transaction volume of $1.133 million.
Currently, there are 697 DApps on EOS, but only about 200 of them have more than 50 daily active users. Dappreview data shows that on December 31, the daily transaction volume of the EOS network was 4.11 million US dollars, while the daily transaction volume of the Ethereum network was 340 million US dollars at the same time. The top ten DeFi protocols ranked by TVL are all based on Ethereum
Market performance and ecological construction have completely collapsed. Liu Wei attributed the current situation of EOS more to BM's poor operational ideas.
He explained that BM is still developing EOS according to the idea of BTS (BitShares), and will hand it over to the community after the mainnet is launched. "The ending of BTS is the ending of EOS." He believes that with the departure of developers, it is not ruled out that EOS will gradually fade out of the market. "Although the EOS network has been born for more than two years, it is still in its early stages, and the public chain community initially needs a leader to build consensus." Voice’s high-profile appearance failed to “support EOS”
In fact, EOS’ parent company Block ONE also struggled. In 2019, the community announced that it would develop a social product called Voice on EOS. In February last year, Voice was officially launched.
On Voice, content creators can share their work through text, video, and pictures, and community members can communicate and discuss with real people. From a formal point of view, if EOS is a copy of BTS, Voice is like a copy of Steem.
In June 2020, Voice also caused controversy for requiring users to conduct KYC. At that time, the Voice platform's statement on strict KYC control was to focus on the authenticity and openness of the content, and "KYC can screen out robots that publish information based on business needs." After this round of controversy, Voice lost its voice.
The official website shows that Voice currently has 26 communities, with the largest community of crypto writers having 847 members. As of 5 p.m. on January 4, the latest news was "Crypto Insights in Kaspersky's 2021 Security Bulletin" released by crypto writer Mark Bailey. Voice is currently open to Chinese users. Voice Community News
Voice is still used by some people, but as a social application, it seems too small compared to giants such as Twitter, Facebook, and WhatsApp. Although the "blockchain" stamp makes Voice look different, at a time when "blockchain and finance are more compatible" and DeFi is very popular, Voice ultimately failed to make a sound that attracted enough attention from investors and users.
From the outside, Block ONE’s investment in EOS is still not enough.
In the early days of the launch of the sidechain BOS mainnet, some developers complained, "I am a programmer. Although I dare not say how good my code is, I also want to submit some of my code to EOS, but BlockOne rarely accepts code submitted by programmers, let alone rewards me."
Block ONE is not short of funds. In 2017, when EOS appeared with the title of "Blockchain 3.0", under the leadership of its parent company, EOS raised funds for a year and raised a total of more than US$4 billion.
On the other hand, Polkadot, which has recently entered the top 6 in terms of market value, has been led by its founder Gavin Wood, who has been leading the project development. After five years, the network was finally put into operation in 2020. In the past five years, the Web3 Foundation, which led the development of Polkadot, has raised three rounds of financing, with a total amount of less than US$300 million.
Where did the funds raised by EOS go? As time goes by, some clues are revealed.
According to EOS Go, EOS parent company Block.One shareholder Christian Angermayer said in an OMR podcast released on September 16, 2020 that Block.One holds more than $2.5 billion worth of Bitcoin. At the time, the BTC price was about $10,500, which means that Block.One holds more than 240,000 BTC.
Block.One CEO BM also said on Twitter that Block.One holds far more than 140,000 BTC. Some EOS holders expressed their dissatisfaction by saying, "Isn't it better to buy Bitcoin? Why do we need to develop it?"
Since BTS in 2014, BM has launched three projects, BTS, Steem and EOS. At present, only EOS can barely maintain its reputation among these three projects. However, many people in the community have lost patience with EOS. Liu Wei left the super node where he used to work, "I only pay attention to BTC now, and I haven't paid attention to EOS for a long time."
Not long ago, the EOS community launched a wave of online marketing in the name of self-help and set up a WeChat group, seemingly wanting to listen to suggestions from all sides. Some people joined the group to see if the EOS community was going to "do something", but found that it ended up being just idle chatting.
When mainstream currencies such as BTC, ETH, and LTC rose in turn, the voices in that group discussing buying these assets far exceeded those of EOS. People seemed to have forgotten the theme of the group discussion, "self-help." (Fengchao Finance) |
