EOS Blockchain Returns in 2024 with Peak Revenue: Messari Research

The EOS blockchain began reinventing itself in late 2023 and showed rapid revenue growth by the end of the first quarter. Recent research from Messari shows that EOS could emerge from years of obscurity and find its place in the renewed push towards decentralized platforms. EOS earnings increased due to a higher number of transactions, as well as fees for shared RAM resources.

One of the key drivers of EOS in the coming months could be Bitcoin-based finance, where fractions of a BTC coin will be represented on the Bitcoin network.

EOS’ revenue still stands at about $1 million a year, a small amount compared to other networks. However, the recovery in activity is seen as a positive sign for construction after a long period of stagnation.

Is EOS making a comeback?

EOS was launched in 2017, following a long period of auction-based token sales. This helped EOS build a significant treasury in ETH tokens as the network looked for real-world projects and applications.

The EOS network will also be renewed in the summer months. First, the token supply will grow to 2.1 billion, injecting another 900 billion into the market. EOS currently has around 1.2 billion tokens in circulation, some of which are held in relatively old wallets.

The new tokens will be paid to block producers first and will be used in the RAM market. The EOS network has a unique feature where it shares RAM resources for decentralized tasks and relies on fees to purchase a portion of the RAM on the virtual machine.

RAM prices increased 10x in 2024, showing increased usage and perhaps a speculative market. The EOS RAM market is also among the main value drivers for the network.

Source: EOS Authority

The EOS network also plans to increase the number of block producers and increase the speed of finalized transactions. EOS is different from other networks in that transactions have a grace period to correct errors before becoming permanent.

Savanna Consensus coming to EOS in July

The EOS Foundation has already set the date for updating Savanna’s consent. The new version is already running on testnet and will be launched on the EOS mainnet from July 31st.

The Savanna update could bring attention to EOS, along with changed rules, an increased number of block producers, and a shorter time until transactions are finalized.

Savanna Consensus was proposed a few months ago and will contain mechanisms to transfer RAM tokens between accounts or burn RAM to reduce supply.

The July update will also pave the way for more distributed apps to be built on EOS, making the network more user-friendly overall.

EOS carries tokenized Bitcoin

The most significant addition to EOS would be a new DeFi tool that uses the Bitcoin representation on the EOS blockchain.

The ExSats project was unveiled in May and has already outlined its goals of creating a docking layer to connect Bitcoin to other networks.

With the ExSats protocol, EOS plans to bring a Layer 2 scaling solution to Bitcoin. This will create a new type of asset, capable of interacting with other blockchains and the Ethereum ecosystem. The ExSats solution will join a growing list of attempts to bring DeFi to Bitcoin, including RGB, Ordinals and Runes technology.

The ExSat network will have a significant barrier to entry, where each validator will have to stake at least 100 BTC.

Can the market price of EOS recover?

EOS trades at $0.80, remaining in a narrow range after years of stagnation. Even with increased usage, EOS remained stuck in sideways trading. The asset, once among the top 10 tokens, has fallen to position 86 based on market capitalization.

The EOS market will now have to absorb the additional tokens, which could cause the price to decline. EOS has a relatively stable trading volume of around $130 million per day. EOS is spread across smaller trading pairs, with a sales slippage of over $400,000.

During the Web3 boom, the EOS network found support from several decentralized apps. EOS and WAX supported the Wombat Dungeon Master game. The most active app on EOS remains Uplant, a metaverse game with more than 25,000 daily players.

Cryptopolitan reportage by Hristina Vasileva