- EOS price has been in a strong bearish trend in the past few months.
- It has already erased over 90% of its value.
- EOS has limited chances for survival in the future.
The EOS price has been in a freefall since May 2021 as investors continue worrying about the blockchain. The token has crashed to a low of $1.23, which is close to its lowest point on record. It has crashed by more than 92% from its all-time high, bringing its total market cap to about $1.2 billion.
Is EOS still a good investment?
EOS is a blockchain project that seeks to become a leading platform for developers to create decentralized applications. It is governed by the EOS Foundation.
EOS was created by the developers behind Block.one, which was one of the most hyped crypto projects globally. At its peak, the developers even managed to raise $4.4 billion in an Initial Coin Offering (ICO) in 2017.
Since then, EOS and Block.one have been playing game of chairs. In 2021, the head of the EOS Foundation even proclaimed that the project was a failure as he blamed Block for inadequate funding.
At the same time, Block has transformed itself into a venture capital firm that has invested in companies like Channel Ledger, Bloq, and even Galaxy Digital. In 2021, the developers even launched a crypto exchange known as Bullish.
Learn more about how to buy EOS.
At the time, they said that the project was backed by $10 billion fund. The company is set to go public through a SPAC merger. But going by its performance, there are limited chances that it will succeed.
While the EOS price crash is in line with what other projects have done, the reality is that the situation is much worse. For one, many developers who used to work for EOS have left. Most importantly, while many newer projects like Avalanche and Solana have thousands of developers, EOS has only a handful.
According to DeFi Llama, the project has only four DeFi apps that have a total value locked of over $150 million. Notably, EOS Rex has a dominance of 42%, making the network highly vulnerable.
EOS price prediction
EOS has been in a strong bearish trend in the past few months. In May, the coin managed to drop below the important support level at $1.848, which was the lowest point in February this year. The coin has remained below the 25-day and 50-day moving averages while the MACD has moved below the neutral point.
EOS price has formed a bearish flag pattern. Therefore, there is a likelihood that the coin will have a bearish breakout as bears attempt to move below $1.
