Can recent investments push EOS to surpass Ethereum?
EOS could be on its way to overtaking Ethereum [ETH]. At least that’s what Ali Ayyash, CEO of decentralized social network Lumeos, thinks. New investments and a relatively strong business model could push EOS to be bigger than Ethereum by a factor of 10, Ayyash noted.
The cryptocurrency has seen a number of significant developments, the most important one being billionaire Peter Thiel’s recent investment in Block.one, the company behind the digital aset. Bitmain, one of the world’s largest blockchain hardware manufacturers, and hedge fund managers Louis Bacon and Alan Howard joined Thiel in investing in the company.
“(EOSIO protocol’s) performance and scalability can meet the needs of demanding consumer applications and will pave the way for mainstream blockchain adoption,” said Jihan Wu of Bitmain.
Thiel, founder of PayPal, backing the virtual currency is particularly significant considering his track record. Not only did he take PayPal public in 2002, he was also one of the earliest outside investors in Facebook.
EOS prices scale higher
Ayyash believes the virtual currency has the potential of overtaking its largest rival, Ethereum. In the past week alone, the coin’s price has climbed over 30 percent. This recovery was seen after the coin battled bearish sentiment last week.
At the time of writing, the coin was trading 12.2 percent higher against the U.S. dollar at $8.91.
EOS, currently ranked the fifth most valuable cryptocurrency according to CoinMarketCap, has a market capitalization of $7.96 billion. ETH, the second most valuble digital currency, has a total value of $50.63 billion. At present, the gap between the two is clearly wide, but a string of positive developments could push the value of EOS even higher.
EOS features more desirable compared to Ethereum
According to Ayyash, the coin’s business model and technical features could be behind the cryptocurrency potentially overtaking Ethereum.
EOS is capable of processing thousands of transactions per second, whereas Ethereum can only process up to 15 transactions per second. Moreover, EOS can be accessed and developed on using a number of languages but Ethereum can be developed on using only one language – Solidity.
Notably, EOS has no transaction fees for users while Ethereum charges for transactions. EOS has an additional capability of freezing hacked accounts or recovering accounts in case the private key is lost. The coin’s mainnet was launched just a month ago and it has already reached the big leagues in terms of value.
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