- Developer activity on the EOS blockchain has plummeted by 85% for the last year, results of a new study show
- EOS price lost nearly 9% last week to return to the previous range around $2.50
- The sellers will now target a move towards $2.15, where the horizontal support is located
EOS price lost over 8% last week to trade around the $2.50 mark again. In the meantime, a new report shows that developer activity on the EOS blockchain platform plunged 85%, which may facilitate additional selling pressure on the digital coin.
Fundamental analysis: Developer leaving EOS platform
Developer activity on EOS blockchain has plummeted by 85% for the last year, according to the research conducted by venture platform Outlier Ventures. Other blockchains including TRON and Bitcoin Cash have also seen a substantial exodus of developers – 63% for Bitcoin Cash and 51% for TRON.
Despite the fact that “the majority of major protocols saw a moderate decline in developer activity (no more than 20%)”, probably because of the coronavirus pandemic, EOS (-86%), Bitcoin Cash and TRON “saw the largest declines in active developers”:
“In the case of EOS, there is likely continued decline following the 2019 launch of its main network and core developers moving away from the protocol…” reports Outlier Ventures.
According to the study, EOS developers had been losing interest in the project following the main network rollout. Together with the developer exodus, the number of updates to EOS’ code base on Github decreased by as much as 94%. Since the blockchain launched in 2018, the devs have rolled out 326 decentralized applications, also known as “dapps”, amounting to only 9% of the total number of dapps in this industry.
During its year-long ICO in 2018, EOS secured over $4 billion. Since the ICO, EOS developers have launched around 515 smart contracts to the network, as reported by the State of the Dapps. On the other hand, Ethereum developers rolled out roughly 2,900 dapps and over 4,500 smart contracts.
The research shows that Ethereum captured the decentralized computing environment as it issued 80% of all smart contracts and dapps, while EOS holds only 9%.
Another platform facing the same problem is TRON, where developer activity plunged by over 50% and the number of code updates is down by 96%, compared to the year-ago period.
Even though EOS still holds the second-largest user base after Ethereum, it remains to be seen how the platform will deal with the exodus and keep up with other rising protocols. Last month, Invezz reported that Block.one was targeted with a new class-action lawsuit.
Technical analysis: EOS price moves lower
EOS price lost nearly 9% last week to hit the 4-week low near $2.42. The price action is now trading around the $2.50 mark and the 100-DMA that comes around $2.54.
Looking lower, the ascending trend line is supporting the price action should we move lower from here. In the mid-term, the horizontal support around the $2.15 handle is a solid opportunity for investors looking to buy the digital asset at a reasonable price.
EOS price lost nearly 9% last week as the platform struggles to keep developer activity at previous levels. According to a recent study, developer activity on the EOS blockchain has plummeted by 85% for the last year.