On April 16 EOS price soared to a new high at $8.49 and the current market structure for the altcoin suggests there is room for further upside.
EOS initially made headlines during the ICO craze of 2018 when its parent company Block.one raised a record $4 billion in funding to create the EOSIO software and in the past three months, the altcoin has nearly tripled in value.
Data from Cointelegraph Markets and TradingView shows that since trading at a low of $2.43 on Jan. 27, the price of EOS has climbed 245% to set a multi-year high of $8.47 on April 16.
EOS/USDT 4-hour chart. Source: TradingView
Three reasons for the rally in the price of EOS since late January include the launch of the new EOS PowerUp model, the release of the new EOSIO testnet by Block.one and the announcement of a collaboration with Google Cloud to advance the integration of distributed ledger technology with cloud computing and storage.
Protocol improvements power up’ price momentum
Momentum for the EOS token began to pick up in earnest in January as approached reaching consensus on integrating the new EOS PowerUp Model which is designed to improve resource allocation.
Congratulations #EOS. Consensus has been reached and the new PowerUp model is live, improving resource allocation. Let’s continue to make EOS stronger. https://t.co/sVkcg2XsfE
— block.one (@block_one_) February 24, 2021
The PowerUp Model is the EOS network’s solution to the issue of transaction fees, which is currently one of the major issues facing the Ethereum (ETH) network.
Under the new model, users have the choice of paying a small fee to power up their account for 24 hours with CPU and NET bandwidth that can be used to fulfill transaction needs or they can deposit their unused tokens to receive a percentage of the power up fees generated by the EOS public blockchain.
As network congestion increases as global adoption rises, networks that offer acceptable solutions to high transaction costs and latency concerns are likely to attract more users looking for a smooth user experience.
New testnet ignites the rally
One of the most significant sources of momentum for EOS and its community came on April 1 when Block.one announced the release of its official EOSIO Testnet.
Ready to test your #EOSIOHackathon project? Experiment in a sandbox running the latest stable release of #EOSIO with our Testnet. #EOSIOTools https://t.co/9exrJOGtNm
— block.one (@block_one_) April 1, 2021
According to the project’s website, some of the features included in the new testnet include a multi-node distributed network, one-click blockchain account creation, an embedded EOSIO explorer and the inclusion of snapshots that enable the quick syncing of EOSIO testnet nodes to ensure high uptime.
The new testnet release is one of the most significant releases to come out of Block.one since the protocol was originally launched in 2018 and provided a boost of confidence for community members who were concerned about the January 2021 departure of Block.one chief technical officer and EOS creator Dan Larimer.
Momentum for the protocol was percolating during the month of March due to an ongoing hackathon that led up to the surprise release of the testnet on April 1 and ignited a significant price rally over the next two weeks.
Google Cloud collaboration adds rocket fuel to the rally
EOS got an added boost to price momentum on April 2 when Google Cloud posted an article discussing its collaboration with EOSIO and how it’s helping revolutionize the integration of distributed ledger technology with confidential cloud computing.
We’re helping @Block_one_ develop and operate their distributed ledger tech with the scalability and reliability of our network, innovation in Confidential Computing, and leadership in #AI / #ML and data analytics. Learn more ⬇️ https://t.co/hfJd5BbpmM
— Google Cloud (@googlecloud) April 2, 2021
Google Cloud was also one of the main partners in the aforementioned hackathon and had the goal of helping “build applications that redefine the future of blockchain and cloud-based systems” which helps to combine the transparent nature of blockchain with the speed and security offered by cloud solutions.
Having such an active relationship with a platform under the Google umbrella has given EOSIO increased validity and the filing of an EOS Grayscale trust in late January means that institutional investors now have an easier way to gain access to this growing ecosystem.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.