EOS is surging this week over news of an expected airdrop that will reward holders of the digital currency with more tokens. In the process, it has leapfrogged Cardano and Litecoin for fifth place by market capitalization.
EOS Hits Two-Month High
The value of EOS has gained more than 45% since Tuesday, leading a broader crypto rally back above $300 billion. The cryptocurrency broke the $9 mark on Thursday for the first time since early February. At the time of writing, it was trading at $8.85 for a gain of 20%.
At present levels, EOS has a market cap of $6.9 billion, compared with $6.8 billion for Litecoin and $5 billion for Cardano. The cryptocurrency generated nearly $2.5 billion in trade volume on Thursday, up from $422 million at the same time last week. That made EOS the fourth most traded cryptocurrency on the global market.
South Korea continues to be the largest market for EOS, with Bithumb and Upbit generating nearly 40% of the daily turnover.
EOS has been at the forefront of a sizable crypto rally this week. The collective value of all coins in circulation approached $310 billion on Thursday, the highest since late March.
Airdrop News Generates Excitement
The sudden surge in EOS was associated with news of an upcoming airdrop of new tokens to existing holders of the digital currency. Developers behind the platform recently announced an airdrop date of Apr. 15 for holders of at least 100 EOS tokens.
It wasn’t the first time EOS surged on airdrop news; the cryptocurrency posted big gains three weeks ago after the company reported it would distribute new tokens to existing EOS holders.
That’s not the only reason why investors are bullish on EOS. Earlier this year, former hedge fund manager Mike Novogratz announced a joint venture with EOS developer Block.one to develop a $325 million fund.
EOS tokens will facilitate activity on the upcoming eos.ios platform, which is scheduled to launch this summer. The new platform intends to compete with Ethereum in infrastructure development and decentralized applications, potentially bringing blockchain adoption to the mainstream.
Investors should be aware of airdrop-inspired gains, as they often lead to an equally large decline once the new tokens enter into circulation. That said, EOS does enjoy strong fundamentals and plenty of excitement around its platform launch.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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