EOS price increases by 100% after protocol upgrade increases staking rewards

As the blockchain space continues to evolve, occasional protocol updates are necessary to ensure projects keep up with the latest developments and provide users with the best possible user experience.

EOS’s recent protocol upgrade has boosted the project’s inflation rate, with the price of EOS up more than 100% since May 5.

EOS/USDT 4-hour chart. Source: TradingView

After hitting a low of $6.18 on May 5, the price of EOS hit a high of $12.85 at noon on May 6 as 24-hour trading volume hit a record $15 billion, according to Cointelegraph Markets Pro and TradingView. , an increase of more than 100%.

Bank of England to hire 100 more staff to oversee crypto markets and businesses operating in them: Golden Finance reports that Bloomberg reports that Bank of England’s (BOE) Prudential Regulation Authority intends to raise funds from local commercial banks to sponsor the hiring of more staff to oversee the crypto market and the businesses operating within it. The financial watchdog wants to hire 100 more people, the source said, for which it will need $419m (£321m). It plans to raise funds from this year to next February. That would be 8% more than what was raised in 2021. The regulator plans to create a framework for crypto assets that will be used internationally.

The Bank of England has some concerns that the cryptocurrency market, currently worth $1.7 trillion, is expanding and becoming big enough to disrupt the traditional financial system in times of trouble. Additionally, the regulator intends to continue working on the regulatory basis for stablecoins.

Currently, the crypto market is valued at just 0.4% of the $469 trillion value of the global financial system. In the BOE, however, they argue that the digital asset market is now bigger than the subprime mortgages that sparked the financial meltdown in 2008, and Bitcoin is here to fix that. (u.today) [2022/4/22 14:40:13]

Protocol upgrade increases rewards for EOS stakers

The difficulty of Bitcoin mining is expected to break through a record high at the end of March: On March 29, according to data from OKLink, the current difficulty of Bitcoin mining reached 27.45T, an increase of 100.6% from the lowest point of 13.68T in 2021; And according to the current network block generation speed and computing power, the Bitcoin network mining difficulty is expected to rise again on March 31, with a range of 4.8% to reach a record high of 28.77T. [2022/3/29 14:24:15]

According to the EOS Twitter feed, the most important developments on the network in the past month have to do with resource allocation and staking rewards.

A recent report commissioned by Block.one concluded that the protocol needs to increase the inflation rate from the current 1% to between 1.2% and 3.8% to increase the financial incentives for voters and block producers.

zkDAO has been approved by BitDAO: On January 27th, zkSync’s latest ecosystem accelerator, zkDAO, has been approved by the BitDAO community, and will have $200 million to expand and develop zkSync. [2022/1/28 9:18:10]

The Cryptowriter podcast interviewed Chaney Moore and Rick Schlesinger about the EOS staking rewards model commissioned by Block.one.

— EOSwriter (@eoswriter) May 2, 2021

While the community still needs to determine the exact rate of increase in the inflation rate, the prospect of increased revenue from community participation helps spark more enthusiasm for the project.

The second major development of the protocol is the EOS PowerUp model, which allows users to pay a fee to power up their accounts within 24 hours to transact on the network without having to pay transaction fees for each transaction.

The PowerUP model provides another way for EOS token holders to earn yield by depositing unspent EOS tokens in exchange for a percentage of "power-up" fees generated by the network.

This has become an increasingly attractive option as most traders look for ways to avoid high transaction fees and network congestion on the Ethereum network.

Cointelegraph Markets Pro’s VORTECS™ data detects the bullish outlook for EOS from May 4, which is before the recent price increase.

The VORTECS™ Score, provided exclusively by Cointelegraph, is an algorithmic comparison of historical and current market sentiment, which is a combination of data points such as market sentiment, trading volume, recent price movements, and Twitter activity.

VORTECS™ score (green) vs. EOS price Source: Cointelegraph Markets Pro

As shown in the chart above, EOS’s VORTECS™ score was in the yellow range for the first few days of May, and then entered the green zone on May 4, achieving a high score of 68. Just an hour later, the price of EOS started to increase by 100% in the next two days.

With the overall cryptocurrency market heating up and projects such as LTC and ETC reaching new highs in 2016, EOS, as a large-cap blockchain project, may continue to benefit from the cryptocurrency bull market.

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