EOS has pulled a bearish about-face since the Voice announcement on June 1st with exchange volumes dropping drastically over the past eight months.
Bitfinex EOS/USD long/short open interest is currently 89% long with long interest ranging near record highs and shorts rising slightly over the past month (top panel, chart below). This large reduction in short interest mirrors a reduction in short interest on Bitfinex for BTC on the same day. A significant price movement downwards will result in an exaggerated move as the long positions begin to unwind. Additionally, there is a mild bullish RSI divergence suggestive of weakening bearish momentum.
Trend metrics for the EOS/BTC pair continue to suggest a bearish picture; price is below the Cloud and the 50-day and 200-day EMAs remained bearishly crossed since June. Bitfinex EOS/BTC long/short open interest is currently 36% long (not shown). A significant price movement upwards will result in an exaggerated move as the short positions begin to unwind.
EOS has led the numbers game in terms of Dapp activity and transactions per day for months. However, further investigation has shown that 75% of these transactions may be bot activity. Total transactions per day on the EOS chain are likely a fifth of the reported five million. Because transaction costs are free on the EOS chain, this is no surprise. Additionally, the current EOS full node size could not be determined, but the chain has very likely developed further blockchain bloat beyond the 4TB discussed earlier this year. Many functional full nodes are important for a network to maintain decentralization and to continue running smoothly. Sooner rather than later, EOS will need to deal with the growing burden of both blockchain size and bandwidth requirements.
Further risks of centralization on EOS comes in the form of the BP governance system, which is absent in many other blockchains and, for many, is antithetical to crypto ideology in general. Even when functioning as intended, unless all 21 of the BPs have an updated blacklist, a compromised account can still slip through the cracks, and an automatically enforced blacklist could be described as censorship.
Technicals for both the EOS/USD and EOS/BTC pair show an active bearish trend with both pairs below the 200-day EMA and daily Cloud. Since the Voice announcement on June 1st, both pairs have fallen over 60%. Mean reversion
Bitfinex EOS/USD long/short open interest is currently 89% long with long interest ranging near record highs and shorts rising slightly over the past month (top panel, chart below). This large reduction in short interest mirrors a reduction in short interest on Bitfinex for BTC on the same day. A significant price movement downwards will result in an exaggerated move as the long positions begin to unwind. Additionally, there is a mild bullish RSI divergence suggestive of weakening bearish momentum.
Trend metrics for the EOS/BTC pair continue to suggest a bearish picture; price is below the Cloud and the 50-day and 200-day EMAs remained bearishly crossed since June. Bitfinex EOS/BTC long/short open interest is currently 36% long (not shown). A significant price movement upwards will result in an exaggerated move as the short positions begin to unwind.
EOS has led the numbers game in terms of Dapp activity and transactions per day for months. However, further investigation has shown that 75% of these transactions may be bot activity. Total transactions per day on the EOS chain are likely a fifth of the reported five million. Because transaction costs are free on the EOS chain, this is no surprise. Additionally, the current EOS full node size could not be determined, but the chain has very likely developed further blockchain bloat beyond the 4TB discussed earlier this year. Many functional full nodes are important for a network to maintain decentralization and to continue running smoothly. Sooner rather than later, EOS will need to deal with the growing burden of both blockchain size and bandwidth requirements.
Further risks of centralization on EOS comes in the form of the BP governance system, which is absent in many other blockchains and, for many, is antithetical to crypto ideology in general. Even when functioning as intended, unless all 21 of the BPs have an updated blacklist, a compromised account can still slip through the cracks, and an automatically enforced blacklist could be described as censorship.
Technicals for both the EOS/USD and EOS/BTC pair show an active bearish trend with both pairs below the 200-day EMA and daily Cloud. Since the Voice announcement on June 1st, both pairs have fallen over 60%. Mean reversion
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