The price of a share in crypto-asset exchange EOS jumped 50 percent on Tuesday after blockchain software company Block.one announced that it had created a new subsidiary, Bullish Global, with more than $10 billion in funding.
EOS is a blockchain-based operating system on the Ethereum blockchain that is designed to create, host, and support secure, decentralized autonomous applications (dApps) and smart contracts. It is currently administered by the block.one organization. The platform claims to be more scalable than many other blockchain networks, with the ability to process 1 million transactions per second without any fees. Its dApp development capability makes EOS similar to Ethereum.
The EOS utility token is not mined but traded for resources, such as bandwidth and storage, and used to pay transaction fees. By comparison, the BTC network (acronym for the Bitcoin digital currency) permits a maximum seven transactions per second.
Bullish Global will be an independent entity under Block.one, with plans underway to launch a blockchain-based cryptocurrency exchange known as Bullish that could be released later this year.
Billionaires Peter Thiel, Louis Bacon and Alan Howard are among the backers of a new crypto asset exchange that makes big bets that decentralized finance will radically reshape the trading and investment of digital assets.
EOS went parabolic in the early hours of trading Tuesday after the annoucement and maintained the momentum into Wednesday for a seven-day gain of 68.29 percent, pushing its market capitalization at $13 billion, according to investing.com.
The token was trading at $10.72 as of this writing, down from its all-time high of $22.98 set on April 29, 2018.
Analysts have long claimed that EOS is well-poised for gains, mainly due to market optimism about other digital assets such as Bitcoin.
“The announcement is resulting in speculation on the price, but EOS had been in an uptrend for a while now, notably since the start of April,” Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, told Forbes.
“It initially benefited from market optimism towards older digital assets and then respected the previous resistance-turned-support level around $8.5.”
While a pullback is expected in the short term as bullish traders take profit, it is not expected to break below the $8.8230 support level.
EOS’s price forecast looks optimistic. Crypto price chart Digital Coin Price predicts the EOS price will touch $20 in 2021 and exceed $40 in 2025. Meanwhile, Long Forecast sees the token hitting $55 in 2021 and breaching $120 in 2025, which implies a 1,700-percent upside from its current price.