As more ERC20 tokens turns out to be either exit-scams or abandoned projects (read about the newest one Oyster Pearl exit scam here , EOS has a weekly volume of 175,000,000USD compared to ETH 15,000,000USD. That is more than 10 times higher volume for EOS. And at the same time Ethereum is priced at 5 times higher mcap than EOS.
My take on this: ETH has been around since 2014. In 2017 there was a huge speculative bullmarket mainly due to hundreds of projects being built on Ethereum network. People threw money at anything with a “whitepaper” “roadmap” and an idea. I remember the memes on how people did their due diligence. Whitepaper? Check. Roadmap? Check. Solid buy!
Now, as it turned out of course, some were scams, and some still are – while others are abandoned projects. Without going into detail, most people involved in the crypto space are aware that the ETH network struggles with congestion and slow transaction times. And nothing really seems to happen.
Meanwhile on EOS, transactions are going through at lightning speed. You can dice with auto-bet, and this shows in the numbers. $175,000,000 is not small money. It’s quite astonishing to be honest.
So while 40-50k users on EOS are using the platform daily pushing the volume higher than any protocol has ever seen except Bitcoin, it is only number 5 on CMC at 4,6B USD compared to ETH’s 20B USD.
Does this mean EOS should be worth more than ETH? Yes it does. ETH is about promises, and most of them unfortunately broken at this point. EOS is a fully working fully scaled blockchain. But, does it mean EOS will go up in price? Not necessarily. It could very well mean that ETH is incredibly overvalued. I would bet on that. So hopefully EOS can maintain more of its current mcap than ETH. I do unfortunately, like I wrote yesterday (I wrote that I thought we would see another fall 1 hour before the fall 😀 . of course just “luck”) still believe that the crypto market is currently overvalued. I hate to be such a party pooper, especially in these dark times. And I do realise that many things are priced in, like promises and hope and future utility. But right now, the way I see it, all the other projects are basically working on creating a cheap copy or a worse version of EOS…Sure, EOS is not perfect and it still need some work to be done. But we have seen the capability of the EOS community to adapt and find solutions and make problems short term instead of completely stagnating and crippling problems like ETH.
Either way I think we will see the flippening in 2019. EOS will have a higher mcap than ETH next year. That is my prediction.
What do you think?
Is EOS extremely undervalued or is it ETH that is extremely overvalued?
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Disclaimer: This is not investing advice. I am not a professional. Just a regular guy talking about cryptocurrencies on the Internet.