EOS rose about 20% to hit $ 1.66 on August 17 and was on track to record its best daily performance since May 2021.
Initially, EOS’s rally came on the back of its positive correlation with top-tier cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), which gained over 2% and 3.75% respectively. But the positive move was also driven by a flurry of uplifting updates that emerged from the EOS ecosystem.
Launch of the EOS incentive program
On August 14, the EOS Network Foundation (ENF), a non-profit organization that oversees the growth and development of the EOS blockchain, opened registrations for its upcoming “Yield +” incentive program.
Yield + is a cash incentive and rewards program to attract DeFi applications that generate returns for their users. In doing so, the service attempts to compete with its main blockchain rivals in the DeFi space, namely Ethereum, Cardano (ADA) and Solana (SOL).
Since the start of Yield + registration, the total locked-in value (TVL) within the EOS pools has increased from EOS 94.71 to EOS 102.18, showing a temporary spike in token demand. The TVL will likely increase in the days leading up to the activation of the reward on August 28th.
Yield + launch is imminent!
Designed to develop economic activity $ EOS incentivizing DeFi dApps that increase TVL and generate returns.
August 14 – Registrations are open
August 28 – The awards for TVL beginGet all the details here:
➡️ https://t.co/fFOZCOEG4y ⬅️ https://t.co/b6q4Xmlay7 pic.twitter.com/ePZPkEiu4I– EOS Network Foundation (@EosNFoundation) August 10, 2022
EOS hard fork in September
Additionally, EOS will be renamed to EOSIO by the end of the week, followed by a consensus update v3.1 called Mandel in September, according to Yves La Rose, CEO of ENF.
The rebranding and update represents EOS’s symbolic divorce from Block.One, the company that originally designed the network, nine months after the EOS community decided to stop issuing 67 million EOS (~ $ 108 million) for reasons of negligence.
Rose noted that the update would happen via a hard fork, meaning the new version (EOSIO) will not be backwards compatible with the original chain and will follow new consensus rules.
EOSIO rebranding and hardforking #EOS is a necessary part of the return, and represents the beginning of a new chapter: #TheNewEOS
Under the guidance of the @EOSN Foundation, $ EOS he can finally break through his glass ceiling and reach his full potential!
– Yves La Rose (@BigBeardSamurai) August 15, 2022
A hard fork also means that in the event of a possible split of the chain, all existing EOS holders will receive an equal amount of tokens on both chains. In theory, this could increase the demand for EOS among speculators in the days leading up to the hard fork, as was demonstrated in the case of Ethereum.
Technicians suggest a greater advantage
From a technical point of view, the price of EOS expects an extended uptrend in the coming weeks
The first major clue comes from a cup-and-handle formation on the daily EOS chart, confirmed by a U-shaped price trajectory followed by a downtrend channel. As a rule of technical analysis, a cup-handle breakout should push the price up as much as the maximum height of the pattern.
As a result, EOS’s upside target is approaching $ 2.45, up nearly 50% from today’s price.
Related: Is Ethereum Really the Best Blockchain for Forming a DAO?
However, as a cautionary note, the breakout is likely to lose momentum near the EOS 200-day exponential moving average (200-day EMA; blue wave) at $ 1.79. Such a pullback could cause EOS to test the 50-day EMA (the red wave) at $ 1.21 as its next downside target, almost 25% below the current price.
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