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EOS · 1w

Why EOS is Underperforming Amid Lawsuit Scare And Weakening Fundamentals

EOS has returned limited year-to-date profits in 2020 compared to its top cryptocurrency rivals. At 1.80 percent, it by far is the worst-performing crypto-asset among the top ten. The ninth-largest blockchain asset stares at potential losses amid a class-action lawsuit scare.

A dollar invested in EOS at the start of this year has returned $1.018 as on Wednesday.

The 1.8 percent year-to-date profit is attractive for investors accustomed to organically-pumped traditionally markets. But given the highly risky nature of cryptocurrency investments, the reward offered by the EOS market is very little compared to its top crypto rivals.

EOSUSD performance over the last three months | Source: Messari

The second-largest blockchain asset, Ethereum, for instance, is up circa 63 percent YTD. Tezos, another rival, has returned 107 percent gains in the same period.

Even a very controversial Bitcoin SV is sitting atop 106 percent YTD profits. Other tokens, including the benchmark Bitcoin, as well as Cardano and Bitcoin Cash, have beaten EOS in terms of profitability.

Weakening EOS Fundamentals

EOS’s poor returns follow a string of disappointing market updates. The cryptocurrency initially fell from $5.53 in February to as low as $1.27 by mid-March in a broader market sell-off – a 77 percent decline. It later recovered by more than 100 percent as a followup to a market-wide rebound.

Nevertheless, the recovery action accompanied weak trade metrics, primarily declining trade volumes that hinted at the involvement of fewer traders in the EOS market. In comparison, trading activity in the Bitcoin market grew stronger after March sell-off.

EOS trade volumes declining since March sell-off | Source: TradingView.com, Binance

EOS investors faced trust issues. Last year, skeptics accused its blockchain of promoting centralization under the garb of a decentralized project. Meanwhile, the U.S. Securities and Exchange Co...

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