The EOS cryptocurrency is growing in popularity as investors from South Korea are bullish on the currency. But even with this, there are worries that the value of EOS will continue to decline over time. The issue comes as various concerns emerge surrounding changes with the value of the currency and how it has performed in the past. The sudden increase in volume is a point that is being discussed as well.
EOS increased by about 40 percent in value on Wednesday. The currency grew to around $8.45 in value through the support of investors. The currency had been trading at the $6 range in recent time. Although the total is less than half of the $18 that the currency was worth earlier in the year, the market cap itself is still increasing at a slightly higher rate. The market cap here was listed at around $6 billion as of late Wednesday.
The total trading volume for the currency also experienced a dramatic increase. The currency had a trading volume average of around $200 million. That total increased dramatically to about $2 billion off of new sales.Advertisement
The main concern surrounding the EOS currency is that there were a large number of groups from South Korea purchasing the coin. There have been situations in the past where EOS and other currencies experienced dramatic value increases thanks to South Korean traders only to have those totals go down. Charts suggest that EOS has become overbought due to the extensive increase in trading volume.
Based on past performance, there is a chance that many people might continue to buy EOS but will only end up selling it off quickly as the profits rise. It is unclear as to whether or not the currency is going through a pump-and-dump scheme. Many larger currencies are not at risk of entering into such schemes though.
There have also been concerns surrounding how EOS sold off its Ethereum proceeds in recent time. EOS sold off its ETH assets to others, thus causing the price of ETH to decline. ETH has since recovered to perform in the same way as other currencies on the market. But even with this, there are concerns that EOS is trying to undermine the performance of other currencies that it is competing with. EOS has been trying to surpass Litecoin, Ripple and Bitcoin Cash among other secondary currencies on the market.
EOS will also be delisted from the Livecoin site on May 23. This could negatively impact the overall value of the currency. The currency is being removed presumably due to the low trading volume on that site. This could negatively influence the value of the currency.
EOS is expected to at least have some activities in the Asian market regardless of where its value goes. EOS continues to be available on Bithumb and Binance. These are two of the largest currency trading sites that target Asian markets.
The value of EOS is also expected to keep moving on its own as mining actions continue to develop. EOS is designed to where its price cannot change due to alterations in mining activities.