The current market makes evaluating the value of a crypto the more challenging to investors. As opposed to technical analysis that caters to price movements, the fundamental analysis looks at several things other than the coin’s economic/financial value. The underlying technology alongside other metrics like use and developments come into play.
At the moment, the entire market teeters and shakes from negative news and probable and impending regulatory crackdown. It’s hard to tell which crypto will be among the 1 percent that survives the predicted crash. Here we look at the fundamental aspects of three coins: Bitcoin (BTC), EOS (EOS), and Zcash (ZEC).
BTC supply and demand
Bitcoin is affected by a number of factors that determine its demand. These are use and adoption, transactions, and overall trading. There are about 17 million BTC coins in circulation. In total, there will only be 21 million coins in supply and demand will increase with time affecting prices.
Its use as a medium of exchange puts ahead of many other coins, though the stiff challenge is seen from newer coins. Many companies and institutions accept Bitcoin as well as being legalized in countries like Japan and Thailand. Demand has dropped due to high fees and many people view it more as a store of value in the near future.
Bitcoin is the most dominant coin on the market by both market price and daily transaction volumes. No other coins see as much activity as Bitcoin in this aspect.
Bitcoin technology and associated problems
Bitcoin utilizes the PoW consensus to secure the network when adding blocks to the blockchain. One of the problems facing the top crypto is scaling and ballooning fees. At one point BTC fees reached $55 due to a slowdown in its network.
BTC has a block size of 1MB and every block takes about 10 minutes to mine, while transactions can take up to a couple of hours to be completed. According to Blockchain.info, this has seen fees go higher and total transactions fall from about 490,000 in December 2017 to an average of 230,000 in the last few months.
However, these problems are soon to be addressed via a network upgrade that introduced Lightning Network among other scaling updates.
EOS launched its Mainnet a few days ago after a delay occasioned by confusion and disagreements in the community. Before that, it was one of the most highly rated projects.
EOS supply and demand
EOS is a non-mineable coin and there will be a maximum supply of 1 billion coins. Of that, a total of 900 million have been issued in a year-long ICO. It’s the 3rd coin with the highest trading volumes at over $1 billion. It trades on almost all major trading exchanges. Its supply sits well with price growth due to demand being so high.
Its main strength is that it has a strong team behind it, in the shape of Block.one. Also, it’s a blockchain 3.0 platform built from the ground up with emphasis on its scalability. It thus can handle millions of transactions per second, making it ideal for the target of being the biggest platform for dApps and blockchains. The developers have set aside $1 billion for development and gave $3 million to Virginia Tech for research. It has the potential to rival Ethereum.
The platform has, however, been criticized for its governance system, seen as being slightly centralized. The 21 block producers (supernodes delegates) are seen as a weak link in the coin’s security.
EOS is in the process of having the mainnet live. The platform is gearing to be the top network for application developers. It’s ready for staking and voting as well as for dApps. EOS was rated among the top coins on GitHub in March behind TRON.
EOS’ future depends on the mainnet launch; success could mean high chances for the coin gaining value.
Demand and supply
Zcash is a mineable coin in the ilk of Bitcoin. It was created in 2016 and has a fully working product. At the moment, there are 4,128,481 ZEC coins in circulation. It has had an average of $72 million worth of trading volumes showing that demand is there. As recently as early May, the coin was added to Gemini, making it one of the few coins on the platform
It’s a privacy-focused coin and has its demand from users who demand anonymity. It does so by combining the strength of Bitcoin’s network and its privacy features. It’s likely to beat other similar coins like Monero, Dash, and Verge in the near future.
The Zcash network is lauded for its zk-SNARKS protocol that makes transactions completely anonymous and untraceable. It also has an experienced team led by Zooka Wilcox and thus isn’t likely to be a scam.
Zcash is continuously working on its platform and is in the process of updating its network with two upgrades for additional functionality. The Overwinter and sapling upgrades will make it handle a lot more use cases and thereby impact on future value. The Zcash devs are also some of the most hardworking as shown on Github with 5379 commits in the last two months.