Research published by venture firm Outlier Ventures on June 11 indicates that the EOS (EOS) network is experiencing a high level of attrition, as several core developers have moved on from the project while also facing a significant drop in developer activity.
On the cusp of launching its social media Dapp Voice, EOS is known for raising the largest amount of money in an ICO at over $4 billion, but the network statistics point towards a network struggling to eat into Ethereum’s market share. The ICO has caused trouble for EOS, with Block.One now facing a class action lawsuit related to securities fraud.
As revealed by DappRadar in April, EOS’ dapp activity has fallen 70% from last year, with roughly 9% of the dapp market accounted for by the network. Outlier Ventures puts these negative developments down to developer churn rates and a reduced interest in the network.
Other Ethereum (ETH) competitors are also facing similar challenges, with TRON seeing a 51% drop in developer activity - Outlier Ventures tentatively suggests that it could be due to negative price action of the asset. Relatively new dapp networks, such as Polkadot (DOT) and Cosmos (ATOM) are showing some growth, however - bucking the trend of most major networks experiencing negative changes in active developers.
EOS currently has a market cap of roughly $2.4 billion and is down considerably from its 52 week high of $7.59. The asset’s price has remained relatively the same over 2020 at the $2.50 levels.