EOS Launches Testnet for EVM Integration

• EOS has released a testnet for its Ethereum Virtual Machine feature before its April release.
• The move is expected to bolster decentralized finance (DeFi) development on the EOS network, potentially increasing the value of EOS tokens.
• The launch of the EOS EVM comes after the platform committed $20 million to direct investments in EOS EVM and GameFi projects.

Overview

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.

Benefits of Integrating EVMs

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 (ETH). This integration will make it easier for developers who have left the platform for Ethereum to use their existing tools without having to learn new ones.

Commitment from Foundation

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.

Price Performance

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 or not this launch will help boost investor confidence remains uncertain.