EOS has launched a testnet for its Ethereum Virtual Machine (EVM) feature before its April release. The EVM is integrated within an EOS smart contract to provide users and developers with high-speed transactions at low fees.
The move is expected to bolster decentralized finance (DeFi) development on the EOS network, potentially increasing the value of EOS tokens.
EVMs serve as the virtual computer environment for Ethereum accounts and smart contracts and are utilized by developers to create decentralized applications (dapps). When integrated into other blockchains, EVMs allow developers to build DeFi apps similar to those created on Ethereum.
EOS plans to make EVMs a key component of its future growth as it seeks to attract developers who have left the platform for Ethereum. In a statement made in January, the foundation highlighted that EVM compatibility is vital to EOS’ potential, both technically and from a business perspective.
The launch of the EOS EVM comes after the platform committed $20 million to direct investments in EOS EVM and GameFi projects. Interestingly, EOS uses its transaction verification mechanism, proof-of-delegated-betting, while Ethereum uses Proof of Stake.
Despite the crypto market heating up for altcoins, the price of EOS is trading with a bearish bias at $1.098, down almost 1.53% in the past 24 hours. However, trading activity is up 81% in the same period, indicating token holders are selling off their EOS to minimize losses.
Whether EOS’s EVM launch will help the platform regain its position as a competitive player in the blockchain industry remains to be seen.