Prices of top cryptocurrencies are rebounding, and investors are rejoicing. There’s green flashing everywhere. The cryptocurrency markets have finally broken the bad spell and are now in recovery mode. The great crypto market crash of 2018 is officially over.
As I scroll down the list of top 10 cryptocurrencies, there’s one name that catches my eyes. This cryptocurrency saw its price skyrocket more than 50% during the market recovery.
I’m referring to NEO, which has turned out to be the best-performing cryptocurrency in the top 10 ranks.
While prices have slightly retraced in the past hours, the coin is still up more than 30% at the time of press, and trading for $107.81 apiece.
So what exactly is going on here? Why is this coin on fire? There are multiple reasons. But first, let’s do a quick refresher on NEO. I’ve covered it in more detail in my NEO price prediction 2018 here.
NEO is an Ethereum doppelganger. Since it took birth in China, it is often dubbed the “Chinese Ethereum.” Like Ethereum, NEO’s blockchain network allows users to build “DApps,” shorthand for “decentralized applications.”
Now, since Ethereum has emerged as the only cryptocurrency that’s being embraced by global corporations and banks with open arms, it’s obvious why its twin is likewise getting noticed.
However, there are two key characteristics that set NEO apart from Ethereum. (Read a more detailed NEO vs. Ethereum analysis here). One is its better scalability, which simply means it is faster than Ethereum. The other is its developer-friendliness. NEO supports multiple languages, unlike Ethereum.
While these distinction make a good case for NEO against Ethereum and other cryptocurrencies, there are four additional possible reasons that help explain the double-digit ascension in NEO prices.
1. Global Demand Buildup
After having failed to curtail cryptocurrency trading by banning domestic exchanges, the Chinese government is now going after foreign exchanges. The government is planning to completely cut off domestic access to foreign crypto exchanges to ensure that the Chinese population may no longer trade cryptos.
If that turns out to be the case, then the Chinese may be backing off from cryptos right now. So the only possible reason why NEO prices are still shooting through the roof is because this Chinese cryptocurrency is now generating demand overseas.
I confirmed my theory by evaluating the trading volume for the past 24 hours. Nearly half of the trades in NEO are currently flowing in from the U.S. and South Korean exchanges.
It’s obvious that NEO is beginning to gain traction outside of China.
2. U.S. Senate Hearing
The demand flowing from the U.S. markets got bolstered yesterday, after the U.S. regulators took a moderate stance on regulating cryptocurrencies. It’s nearly confirmed that the U.S. government is not banning cryptocurrencies. So investors in one of the biggest crypto markets are now trading with more peace of mind.
Likewise, the South Korean government put to death all rumors of a ban by confirming that only regulations will be put in place. There will be no crypto ban.
All in all, investor sentiment has turned positive for all cryptocurrencies. NEO just happens to be one of them.
3. NEO DevCon
NEO concluded its first-ever Developers Conference (DevCon) last week. It was an event similar to Ethereum’s DevCons, where NEO founders met with developers to discuss the crypto’s potential.
The founders pitched NEO as the better alternative to Ethereum, inviting developers to move to their platform. A number of new NEO applications were also showcased by existing developers. In a nutshell, the meetup with Silicon Valley crypto developers was a success.
The DevCon helped NEO earn some visibility outside of China. We believe it’s one small but powerful factor driving demand for the coin.
4. NEO GAS
Unlike other cryptocurrencies which reward only miners, NEO incentivizes all buyers with rewards in the form of “NEO GAS.” It’s loosely viewed as a form of a crypto dividend.
NEO GAS is paid to NEO investors for holding a certain amount of NEO coins in their wallets. GAS likewise trades on crypto exchanges and is currently priced at $40.56. It’s an incentive for NEO investors to make easy buck and possibly another element propping up demand.
The list of reasons may not be all-inclusive, but it will certainly give you an idea why the NEO cryptocurrency price is soaring. NEO is seemingly emerging as a solid Ethereum rival, which is why we have put a $200.00 price target on it