- EOS launched its EVM testnet this week as it seeks a rebirth.
- The blockchain faces significant challenges because of the rising competition.
EOS price has crawled back in the past few days as investors bet on the network’s comeback. The token rose to a high of $1.2194, the highest level since March 20th. In all, EOS has jumped by more than 22% from the lowest level this month.
EOS EVM testnet launch
EOS is a major blockchain that was launched a few years ago as part of the biggest Initial Coin Offering (ICO) in the world. At the time, Block raised over $4 billion and promised to build the most active blockchain in the world.
However, EOS has been one of the biggest failures in the industry. Despite being well-funded, EOS has nothing much to show for it. The situation escalated when the core team left in 2022 to launch a separate entity.
EOS is now attempting to turn around its entity. As part of this launch, the developers announced that they will launch EOS Ethereum Virtual Machine (EVM) as it seeks to grow its ecosystem. An EVM is a piece of software where Ethereum accounts and smart contracts live.
By having an EVM, EOS dApps will be able to co-exist within Ethereum’s ecosystem. Most importantly, EOS users will be able to interact with popular platforms like MetaMask.
Read more: How to buy EOS.
As part of this launch, EOS Network Ventures announced that they will set $20 million directly into the EOS EVM and GameFi projects. The goal is to establish EOS as a leading platform in the blockchain industry. EOS has partnered with key players like Multichain to grow its ecosystem.
EOS ecosystem is relatively small. Data by DeFi Llama shows that the total value locked (TVL) has risen to E103.4 million. In dollar terms, the TVL stands at $123 million, which is lower than its all-time high of $314 million.
The biggest challenge for EOS is that it is facing significant competition from the likes of Arbitrum, Optimism, and Polygon.
EOS price prediction
The 4H chart shows that the EOS crypto price has been in a strong bullish trend in the past few days. It has moved slightly above the key support at $1.1500, the highest point on March 15. The coin has moved above the 50-period moving average.
It has also formed what looks like a head and shoulders pattern, which is a bearish view. Therefore, there is a likelihood that the coin will have a bearish breakout in the coming days. If this happens, the next key support level to watch being at $1.100.
