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On April 16, the price of EOS reached a record peak of $8.49, and the existing trading structure for the altcoin shows that there is already space for more gains.
EOS first made headlines during the 2018 ICO craze as its parent company Block.one raised a whopping $4 billion in capital to develop the EOSIO app, and the altcoin’s valuation has nearly tripled in the last three months.
According to TradingView data, the price of EOS has risen 245 percent since trading at a low of $2.43 on January 27 to a multi-year high of $8.47 on April 16.
The introduction of the latest EOS PowerUp model, the launching of the new EOSIO testnet by Block.one, and the announcement of a partnership with Google Cloud to advance the convergence of distributed ledger technologies with cloud computing and storage are three reasons for the price rally in EOS since late January.
Protocol improvements power up’ price momentum
Momentum for the EOS token started to build up in earnest in January when the team neared agreement on implementing the new EOS PowerUp Model, which is intended to optimise resource distribution.
— block.one (@block_one_) February 24, 2021
The PowerUp Model is the EOS network’s approach to the problem of transaction costs, which is actually one of the Ethereum (ETH) network’s biggest issues.
Users can pay a small charge to power up their account for 24 hours with CPU and NET bandwidth that can be used to meet transaction needs, or they can deposit their unused tokens to obtain a percentage of the power up fees provided by the EOS public blockchain.
As network complexity worsens due to increased global penetration, networks that have suitable solutions to high transaction costs and latency issues are likely to draw more customers seeking a seamless user interface.
New testnet ignites the rally
On April 1, Block.one announced the launching of the official EOSIO Testnet, which was one of the most important sources of momentum for EOS and its culture.
— block.one (@block_one_) April 1, 2021
According to the project’s website, the new testnet includes a multi-node distributed network, one-click blockchain account construction, an integrated EOSIO explorer, and snapshots that allow for fast syncing of EOSIO testnet nodes to insure high uptime.
The latest testnet update is one of the most notable Block updates to date. one after the protocol’s initial launch in 2018, providing reassurance to group members worried about the departure of Block.one chief technical officer and EOS founder Dan Larimer in January 2021.
During the month of March, momentum for the protocol was building due to an ongoing hackathon, which culminated in the surprising release of the testnet on April 1 and sparked a major price rally over the next two weeks.
Google Cloud collaboration adds rocket fuel to the rally
On April 2, Google Cloud published an article about its partnership with EOSIO and how it is helping to revolutionise the convergence of distributed ledger technologies with confidential cloud storage.
We’re helping @Block_one_ develop and operate their distributed ledger tech with the scalability and reliability of our network, innovation in Confidential Computing, and leadership in #AI / #ML and data analytics. Learn more ⬇️ https://t.co/hfJd5BbpmM
— Google Cloud (@googlecloud) April 2, 2021
Google Cloud was also a key participant in the aforementioned hackathon, with the aim of assisting in the creation of “applications that redefine the future of blockchain and cloud-based systems,” which helps to integrate the transparency of blockchain with the pace and protection provided by cloud technologies.
With such an active partnership with a Google forum, EOSIO has gained legitimacy, and the filing of an EOS Grayscale trust in late January means that institutional investors now have a simpler way to obtain access to this growing ecosystem.