The EOS network’s RAM market has performed well this year and has the potential to continue to grow based on three key factors:
Supply Shock: EOS block producers (BPs) made a critical decision to stop the inflation of RAM supply with each new block. In any market, price is driven by the balance of supply and demand. By eliminating the constant influx of new RAM, BPs essentially set the market up for a rally. This change was recognized by many savvy players who understood the impact of the price increase.
External Demand Injection: The recent tokenomics proposal by the EOS Network Foundation (ENF), which has now been approved, has injected a significant amount of capital (estimated to be eight figures in USD) into the RAM market. This has created a strong wave of external demand, further supporting and boosting the RAM price.
Strategic collateralization and borrowing restrictions: BRAM, a wrapped RAM token, introduced by Defibox has become a key factor. While BRAM is an excellent collateral, its borrowing functionality was disabled following the front-end breach in May. This created an asymmetric situation where holders could leverage long positions in BRAM, but short sellers were unable to borrow to liquidate those positions. This dynamic strongly favors RAM price appreciation.
Continued Momentum: 25x Upside Possible
The combination of these three factors creates a solid foundation for continued growth in the EOS RAM market. If these conditions persist, a 25x price increase in six months is possible. Supply shocks, continued external demand, and BRAM’s unique borrowing restrictions all contribute to the bullish outlook.
Important warnings
It is important to remember that market forecasts are inherently uncertain. While fundamentals are currently strong, unforeseen events or changes in market sentiment could affect the direction of RAM prices. Therefore, it is vital to approach any investment with caution and conduct thorough research.
Other considerations
Network Adoption: If EOS network usage continues to grow, demand for RAM (which is essential for executing transactions and storing data on the blockchain) is likely to increase.
Regulatory environment: Changes in cryptocurrency and DeFi regulations may affect market dynamics.
Technological Developments: Innovation within the EOS ecosystem or competing blockchains may also play a role.
in conclusion
The EOS RAM market presents an attractive growth opportunity, driven by a number of positive factors. While there is potential for significant price increases, investors should remain vigilant and adapt to the changing cryptocurrency landscape.
