Blockchain
EOS Blockchain Set for Strong Comeback in 2024, Messari
- The once magnificent EOS blockchain is planning a big comeback via a network upgrade in July.
- The protocol is eyeing a major DeFi overhaul that will tie it to Bitcoin to further its utility.
THE EOS Blockchain, after years of stagnation, is destined for a significant comeback in 2024, according to recent research by Messari. The network, which began its reinvention in late 2023, has already demonstrated notable revenue growth from the close of the first quarter. This signals that EOS is trying to regain its place in the spotlight in the current push towards decentralized platforms.
EOS transaction volume as indicators of revival
A notable indicator of EOS’s resurgence is the increase in transaction volume and fees associated with shared RAM resources. While the network’s annual earnings are still modest, at around $1 million, the increase in activity is a promising sign after a prolonged period of inactivity.
Originally launched in 2017 after a long period of token auctions, EOS has amassed a significant hoard of ETH tokens. Despite this, the network has struggled to find high-impact projects and real-world applications.
Now, the platform is set for a total overhaul in the summer that could change that trajectory. The total token supply of EOS will expand to 2.1 billion. These new tokens will be distributed primarily to block producers and used within the RAM market, a defining feature of the EOS network.
In 2024, RAM prices have increased tenfold, indicating increased usage and perhaps speculative trading. This RAM market is emerging as a crucial value driver for EOS.
Part of upgrading the network is improving its infrastructure by increasing the number of block producers and speeding up transaction finalization times. Unlike other networks, EOS transactions have a grace period for error correction before becoming permanent.
Updates and consensus mechanisms
Savanna’s next consensus update, scheduled to launch on the mainnet on July 31, will mark a major step forward. This update, already in the testing phase, promises to introduce new mechanisms for transferring and burning RAM tokens, further refining network operations. The update aims to make EOS more attractive for decentralized app development, thus improving its usability.
A particularly interesting development is the integration of a new DeFi tool that leverages the representation of Bitcoin on the EOS blockchain. The ExSats project, which debuted in May, will create a docking layer to connect Bitcoin with other networks. This Layer 2 scaling solution for Bitcoin helps facilitate interaction with other blockchains and Ethereum ecosystem. ExSats will join ventures such as RGB Technology, Ordinals, and Runes, all working to bring DeFi capabilities to Bitcoin.
However, ExSats imposes a high barrier to entry, requiring each validator to stake at least 100 BTC, ensuring solid security and commitment.
As reported in a previous Crypto News Flash report, EOS was once number one in China and one of the top 10 cryptocurrencies by market capitalization. However, EOS has now fallen to 86th position. Despite this progress, EOS’s market performance has yet to reflect its increased utility. Currently trading at $0.80, the token remains in a tight trading range and is down 1.59% in 24 hours.