Currency

EOS Platform in Decline as Competition Heats Up in Blockchain Space


June 19, 2020

EOS, the largest initial coin offering (ICO) project in the world, appears to be in financial and developmental trouble according to new research from Outlier Ventures. During the past year, the platform has been on a steady decline, with the number of developers down 85 percent. And code updates on Github were down by 94 percent during that same time period.

The EOS cryptocurrency was designed to compete directly with Ethereum. The platform enables developers to build and run decentralized apps (dapps) on a blockchain. Because they are run in this manner, businesses don't have to worry about speed or spending on electricity and other resources.

Owned by block.one, EOS raised more than $4 billion during its year-long ICO in  2018. Developers have since added around 325 dapps and 515 smart contracts to the platform. Outlier Ventures reports that Ethereum still dominates the decentralized blockchain market, owning 80 percent of all smart contracts and apps compared to EOS' nine percent. Nearly 2,900 dapps and more than 4,500 smart contracts have been released on Ethereum.

Outlier Ventures believes the decline in the EOS platform's development is tied to waning interest following the launch of its main network last year. Even as developers have moved away from its protocol, it still maintains the second largest user base after Ethereum, with close to 15,000 average daily active users.

EOS isn't the only platform that has experienced a decline over the past year. TRON underwent a more than 50 percent drop in active developers, with 96 percent fewer code updates.

Other blockchain players fared better over the same time period. Polkadot's mainnet blockchain went live in May, and has seen monthly active developers rise by more than 40 percent. Polkadot is designed to connect other blockchains together into a single network.

And Cosmos, which this month released its Band Protocol 2.0 on its Cosmos Network, saw active developers grow 15 percent since last year. The cross chain data oracle can process 50 transactions per second. Smaller players Theta and Cardano have also seen significant uptake, with their code updates increasing by 930 percent for Theta and 580 percent for Cardano.




Edited by Maurice Nagle

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