EOS has been one of the top-performing crypto-assets in 2019. The virtual currency has surged by more than 400% in valuation, since the start of January. The EOS.IO team had also announced a collaboration between EOS and the Coinbase Earn platform, where users can collect the virtual asset by viewing content on the Coinbase Earn platform.
Despite the prominence of its ecosystem however, a lot of questions have been raised against its centralized functionality. A significant part of the community has suggested that EOS does not “prioritize” the idea of decentralization as the network currently has only 21 active nodes, implying that the control resides in a limited number of individuals.
Weiss Ratings had previously raised this issue and commented that the ecosystem had “serious problems with the centralization aspect.”
However, according to recent statistics released by Blocktivity, EOS’s public blockchain is responsible for more than 60% of all blockchain transactions, outperforming the likes of Ethereum [ETH] and TRON [TRX].
Weiss Ratings recently commented on the issue again, and acknowledged that EOS was still one of their “top rated projects.”
The leading crypto-ratings provider for virtual assets and stocks ETFs claimed that the fact that EOS was “downgraded” stems down to its centralization issues and the fact that EOS has not taken any measures to improve on it, since its main net launch.
Weiss Ratings suggested that developers were just dodging the issue and being oblivious about it.
It was also recently reported by AnChain.AI that a major share of EOS DApp transactions were made by bots. The study claimed that around $6 million in transaction volumes were rapidly driven due to illicit bot activities on DApps in the first phase of 2019.
The suggested manipulation through artificially-curated accounts does not sit pretty with EOS’s profile and despite the valuation pump, in the long term, it is speculated by some that the virtual asset might not be able to hold its ground.
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Top Losers: Ethereum, XRP, and EOS bleed as crypto-market follows Bitcoin’s lead
The cryptocurrency market has been enjoying an unprecedented bull run over the past few months, a trend that reached its apex when Bitcoin briefly touched the $13,000 mark on Binance. However, on June 27, the market witnessed a trend reversal, with the bears returning to the world of digital assets.
Apart from Bitcoin’s price dropping by over 5% in an hour, popular altcoins like Ethereum, XRP and EOS also suffered a hit in value, with the bears ravaging all coins in the top ten cryptocurrencies club.
At the time of writing, Ethereum had fallen from $331.39 to $321.52 within an hour. This whopping 9.87 percent drop contributed to its market cap settling at $34.35 billion. The second largest cryptocurrency held a 24-hour trading volume of $106.66 million, a decent amount when compared to its figures during the bear market.
A majority of the volume was held by DOBI Exchange, a popular cryptocurrency exchange which controlled $636.38 million of all ETH trade. DOBI was followed by Huobi Global, with a 3.3 percent hold on all Ethereum transaction volumes.
The next altcoin to be affected by the sudden bear market was XRP, which fell by 6.67 percent in the hourly cycle. At press time, XRP was trading at $0.42, a far cry from the $0.47 it was trading at 24 hours ago. The cryptocurrency had a market cap of $18.22 billion and a 24-hour trading volume of $3.27 billion. BW.com, a relatively unknown cryptocurrency platform, controlled a majority of XRP trade with $232.13 million in ETH trading volume.
EOS was the third most affected by the bears’ attack, as the cryptocurrency fell by 3.41 percent in 50 minutes. EOS was trading at $6.446, with a market cap of $5.97 billion. The $5.29 billion trading volume was majorly split between LBank and Huobi Global, both of which recorded 9.48 percent and 5.75 percent in EOS trading volume, respectively.
The sudden market crash was speculated to be a major correction of prices after a sustained period of bullish rise by the coins. This fall coincided with predictions made by popular analysts and traders who had previously claimed that Bitcoin and the rest of the market will go through more bear runs, before they reach their all-time highs.
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