EOS (EOS) token surges to a multi-week high of $0.6675 following the rebranding news before retreating to $0.5695.

EOS (EOS) initially surged to a multi-week high of $0.6675 following the rebranding news before retreating to $0.5695.

EOS (EOS) experienced significant volatility this week after developers announced a major rebrand and a shift toward a “new era in finance.”

EOS (EOS) initially surged to a multi-week high of $0.6675 following the rebranding news before retreating to $0.5695. In a statement on Tuesday, developers confirmed that EOS will rebrand to Vaulta as it aims to become the leading blockchain for the finance industry.

Vaulta will seek to bridge the gap between traditional finance and Web3, focusing on industries like wealth management, consumer payments, portfolio investment, and insurance.

Its wealth management pillar will be powered by Ceffu, a network providing Bitcoin (BTC) yield. Its goal is to use Vaulta’s virtual chain architecture to help convert Bitcoin into a fully liquid, yield-generating asset within the Web3 banking ecosystem.

EOS will transition to Vaulta in May. The new Vaulta token will have a staking yield of approximately 17%, sourced from about 250 million tokens set aside for rewards. The token’s new ticker symbol will be unveiled before the rebrand.

The upcoming EOS rebrand comes as the network has struggled to compete with other blockchains like Ethereum, Solana, Tron, and BNB. According to DeFi Llama, EOS’s total value locked stands at $174 million, a modest figure considering the industry’s total value exceeds $80 billion. EOS also has a stablecoin market cap of just $10 million, much lower than other chains.

Other chains have rebranded with mixed success over the years. The most recent success was the transition of Fantom (FTM) to Sonic (S). Sonic’s total value locked has jumped to over $763 million, while its stablecoin market cap has risen to $1.2 billion.

Polygon’s rebrand from MATIC to POL has not worked out well as it has continued to lose market share in the layer-2 industry. Also, Elrond’s rebrand to MultiverseX has not succeeded.

EOS price technical analysis

The daily chart shows that the EOS token bottomed at $0.4295 this month. This was a notable level since it coincided with its lowest level in July, August, September, and November last year. That is a sign that bears are afraid of shorting below that price.

EOS has formed a giant quadruple bottom at $0.4295 whose neckline is at $1.5408, its highest level in November last year.

Chart created using TradingView

Therefore, the coin’s outlook is bullish as long as it remains above the quadruple-bottom at $0.4295. A bullish breakout would see the coin jump by 175% to $1.5410. A drop below the support at $0.4295 will point to further downside.