Market capitalization, often called marketcap, is like the total value of all the coins in a particular cryptocurrency.
Now, why do we care about marketcap? Well, it's a useful tool for comparing different cryptocurrencies. You see, these cryptocurrencies come in all shapes and sizes – they have different numbers of coins in circulation. It's like comparing apples and oranges, as they say.
Think of it this way: Back in 2018, EOS was a big deal. It was like the third most popular cryptocurrency in the world, just like a chart-topping song. But if we fast forward to October 2023, EOS has slipped in popularity. It's not even in the top 50 anymore. The reasons for this change are complex, involving shifts in the world of cryptocurrency and how people feel about it. In the following you find a few reasons why EOS has fallen in the rankings:
The overall cryptocurrency market downturn
The cryptocurrency market as a whole has been in a bear market since late 2021, with many coins and tokens losing significant value. EOS is not an exception to this trend.
Market Volatility
Cryptocurrency markets are known for their high volatility. Prices can fluctuate significantly over time due to market demand, trading volumes, and investor sentiment.
The EOS ecosystem is still under development
EOS is a relatively new blockchain platform, and its ecosystem is still under development. There are fewer decentralized applications (dApps) and other projects running on EOS than on other, more established platforms like Ethereum.
Regulatory Developments
News and regulations related to cryptocurrencies can impact their prices. Negative news, such as potential regulations or bans, can decline prices.
Market Sentiment
Public perception and sentiment about EOS can significantly influence its price. Positive news, partnerships, or developments within the EOS ecosystem can drive up prices, while negative sentiment can cause a decline.
It is important to note that the cryptocurrency market is highly volatile and prices can fluctuate wildly. It is also important to do your own research before investing in any cryptocurrency, including EOS.
Author: Jesse Jaffe, Dario Cesaro
Editor: Dario Cesaro, Randall, Roland, Markus Hinrichs