EOS has been climbing lately, earning its place as a top ten cryptocurrency.
The platform, like Ethereum, has dozens of decentralized applications running on it. Many of its most popular dApps are gambling-related, much like Tron. Ethereum, too, has its share of gambling applications.
Gambling has long been a core institution of cryptocurrency, after all.
Still, with EOS rebounding in such a frenzy, one has to wonder: what’s driving demand?
We know, for example, that Tim Draper just joined an EOS-based company. But could that news alone really be enough to boost demand on the exchanges for EOS?
Why Do Traders Suddenly Want EOS?
It’s not impossible. It just seems unlikely.
The more likely case is that EOS is gaining right alongside Bitcoin, while perhaps seeing a small spike as a result of recent positive news.
The appeal of holding cryptocurrencies like EOS and Ether is that they are in demand for use of the decentralized applications – even if those applications use their own token. Using your own token doesn’t mean you won’t need to transact on the main chain at some point, which costs a small amount of the token.
If you can limit the supply of that token, the demand for it will outpace said supply, and the price will increase.
The idea is that eventually the various platforms will be in such high demand that having held any amount of the base tokens will be rewarded with correspondent price bumps.
Far from impossible, this would be an accurate description of the way most markets have treated their long-term investors.
EOS is, of course, a notable exception, having occasionally dropped below its initial value from when it was introduced. That notwithstanding, the blockchain has had a number of apps developed on it, and it’s incredibly fast.
Speed will become increasingly important as more and more end-users get to try out blockchain technology. Users will care less about decentralization and more about speed when they try out decentralized applications. Nobody likes waiting 30 seconds to know if something is even going to work.
EOS vs Ethereum
This is the advantage that blockchains like EOS and Tron are trying to take – by offering extremely fast service, they hope to attract both developers and users.
In both cases, the approach seems to be working – but Ethereum nevertheless dominates the market in terms of both decentralized applications and overall holders and users.
Which doesn’t necessarily mean that people are using the dApps – according to numerous sources, both Tron and EOS end up processing more transactions.
In either platform, it’s generally encouraged to perform as much as possible on-chain. As such, a single user might have hundreds or even thousands of transactions in a given day.
Ethereum generally has a slower block time than either of the aforementioned options, and thus things are done differently. As a result, while there are more users, there are ultimately less transactions being recorded on chain.