EOS Market Update: Developers flee from EOS blockchain

EOS is the 9th digital asset with the current market value of $.3 billion and an average daily trading $1.5 billion. The coin has lost over 2.5% in the recent 24 hours and over 4% since the start of Monday to trade at $2.45 at the time of writing. EOS/USD is moving within a short-term bearish trend in sync with the market.

EOS blockchain has a problem

Over the last year, the developers activity on EOS blockchain has decreased by 85%, according to the recent study performed by Outlier Ventures. Bitcoin Cash and TRON have also experienced the developers exodus (by 63% and 51% respectively).

The researchers found out that EOS developers had been losing their enthusiasm about the project since launch of its main network. Along with the decreased developers activity, number of updates to the project's code base on GitHub has fallen by 94%. Since the EOS network went live in 2018, the developers have launched 326 operational decentralized applications (dapps), which is only 9% of the total number of Dapps in the blockchain industry.

EOS/USD: Technical picture

On the daily chart, EOS/USD is trading marginally below the lower line of the daily Bollinger Band at $2.47.  We will need to see a sustainable move above this area to improve the short-term picture and allow for the recovery towards the next local barrier created by daily SMA100 at $2.55. Once it is out of the way, the upside is likely to gain traction with the next focus on $2.66 reinforced by a combination of daily SMA50 and the middle line of the daily Bollinger Band. The ultimate resistance is created by $3.00; however, the bulls will have to clear the upper line of the recent consolidation channel coupled with the upper line of the daily Bollinger Band at $2.88, before they get a chance to test $3.00.

On the downside, the sell-off may be extended towards May 10 low at $2.25 and to the psychological $2.00.

EOS/USD daily chart