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EOS price surges 6 percent despite network congestion

EOS has grown by more than six percent over the past day and is now trading for more than $3.60 while the network suffers from "airdrop congestion."

2 min read

EOS, the fifth-largest cryptocurrency market cap, is up by nearly a buck over the past month, today seeing an increase of roughly 6 percent, according to data from Messari.

The price of EOS today hit a high of $3.67 before correcting slightly to around $3.64.

At the moment, it appears that the cryptocurrency has rebounded from its late-October low, when EOS was seemingly stuck around the $2.60 per token mark. Several factors have likely contributed to the currency’s sudden gains, including, potentially, its addition to the Celsius Network. Customers of Celsius can now stake their EOS funds and earn interest on their holdings.

Following that announcement, EOS spiked by more than six percent and rose to approximately $3.46, leading the entire crypto space in a price rally, though most of the remaining top 20 coins experienced only slight gains by comparison.

But while EOS’s price has been on the way up in the last few weeks, its network is another story. The contracts that the network has been processing dropped by more than 40 percent just yesterday and fell significantly from the 150,000 contracts first reported in mid-October. The network experienced heavy congestion which has prevented certain transactions from going through.

The fault likely lies with a token airdrop that was announced last Friday. Advertised as “free money,” the airdrop allowed users to mine EOS with unused CPU. However, if too many computers engage in the mining process, the network can fall victim to a traffic jam.

But, evidently, none of that is having a negative effect on the price of EOS today.

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