This week, the EOS blockchain faced notable fluctuations following the announcement of a significant rebranding and a pivot towards a “new era in finance.”
After the news of the rebrand, EOS (EOS) initially climbed to a multi-week peak of $0.6675 before retracting to $0.5695. On Tuesday, developers revealed that EOS is set to be rebranded as Vaulta, aiming to establish itself as a premier blockchain within the financial sector.
Vaulta intends to create a bridge between traditional finance and Web3, targeting sectors such as wealth management, consumer payments, portfolio investments, and insurance.
Its wealth management segment will be facilitated by Ceffu, a network that offers Bitcoin (BTC) yield. The objective is to leverage Vaulta’s virtual chain technology to transform Bitcoin into a fully liquid, yield-bearing asset within the Web3 banking environment.
EOS will transition to Vaulta in May. The new Vaulta token is expected to offer a staking yield of around 17%, derived from approximately 250 million tokens allocated for rewards. The updated ticker symbol for the token will be disclosed prior to the rebrand.
The impending rebranding of EOS comes as the network has faced challenges in competing with other blockchains, such as Ethereum, Solana, Tron, and BNB. Recent data indicates that EOS holds a total value locked of $174 million, a modest amount when considering the industry’s total value exceeds $80 billion. Additionally, EOS’s stablecoin market cap is only $10 million, significantly lower than its counterparts.
Over the years, other chains have rebranded with varied levels of success. A notable recent success is Fantom’s (FTM) transition to Sonic (S), which has seen its total value locked soar to over $763 million, along with a stablecoin market cap reaching $1.2 billion.
Conversely, the rebranding of Polygon from MATIC to POL has not been advantageous, as it continues to lose market presence in the layer-2 sector. Similarly, Elrond’s rebranding to MultiverseX has also not fared well.
EOS Price Technical Analysis
The daily chart indicates that the EOS token reached a low of $0.4295 this month. This level is significant as it corresponds to its lowest points in July, August, September, and November of the previous year, suggesting that bears are hesitant to short beneath this price.
EOS has established a substantial quadruple bottom at $0.4295, with its neckline positioned at $1.5408, the peak recorded in November of last year.
Thus, the outlook for the coin remains bullish as long as it holds above the quadruple bottom at $0.4295. A bullish breakout could see the coin rally by 175% to $1.5410. Conversely, a dip below the support at $0.4295 would indicate further declines.