The EOS exceeded for the first time the capitalization of 9 billion dollars, registering a daily gain of more than 40% as the market was recovering the ban.
EOS is popular in South Korea
Over the past 48 hours, the global cryptocurrency market has rebounded after a major correction prompted by the premature declaration of Park Sang-ki, South Korea's justice minister, on the banning of crypto trading currency, then refuted by the Ministry of Finance and the Blue House, executive office of President Moon Jae-in.
After the fallout from the Justice Ministry's proposal to ban cryptocurrency trading, crypto-currencies concentrated on the South Korean market increased in value. Cryptocurrencies such as Zcash, Qtum, Monero and EOS that have almost 50% of their daily trading volumes processed in South Korea have increased significantly.
In the South Korean market, EOS has gained popularity due to its relatively cheap tokens and Ethereum-like ecosystem. Built on top of the Ethereum protocol, EOS powers decentralized applications with a flexible and scalable network. Each EOS token is worth about $ 11, which is significantly lower than the Ethereum, valued at $ 1,260.
Newcomers to the cryptocurrency market often tend to evaluate the potential growth capacity of cryptocurrencies based on their price, not their capitalization. For example, many investors in the South Korean market believe that Litecoin is worth more than the Ripple, because Litecoin costs more than $ 250, while Ripple costs less than $ 3.
For new investors in cryptocurrencies, think of the capitalization. Not at the price of the token. Capitalization gives an estimate of potential growth. The price per token does not mean anything since the supply of each altcoin is different. $ 0.1 per token does not mean it's cheap. $ 100 per token does not mean it's expensive, explained the Squeeze cryptocurrency trader.
But, the vast majority of investors in emerging markets like South Korea still have not understood the concept of market valuation and value cryptocurrencies according to the price of individual tokens. As such, the popularity of EOS has increased in South Korea because it works similarly to Ethereum and Cardano, but its price is cheaper.
Currently, Bithumb, the world's second-largest market-based cryptocurrency exchange in Seoul, processes $ 1.3 billion in EOS, the second most traded cryptocurrency on the South Korean market. The trading volume of the EOS on Bithumb is larger than that of Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Monero, Dash and Zcash combined.
Short term trend
In the short term, crypto-currencies with a strong consumer base in South Korea such as Monero, EOS, ZCash, Qtum, Ripple and Ethereum are likely to increase in value as the entire Cryptocurrency market is recovering from the recent correction.
The Ripple and Ethereum also have large communities and followers in the South Korean market, which has pushed up the price of most of the above-mentioned cryptocurrency in recent months.