NEO Token Surges 5% In Last 24 Hours Despite Market Downtrend

NEO emerged as number two among the top-gaining coins today when most cryptocurrencies are down. CoinMarketCap data shows the token has increased by over 5% over the last day and is trading at $12.77. 

NEO also recorded a 6.62% price gain on the weekly chart. This price boost comes after the launch of its instant messaging service called NeoChat on March 20. Notably, the token scored an over 15% price increase on March 18 and a 14% rally on March 20. 

These price movements led the token to retain most of its weekly gains. At the time of writing, the coin has rallied by 31.9% over the past 14 days. In addition to NeoChat, on March 22, Neo blockchain announced a Neo compounder that allows users to use GAS rewards to purchase more bNEO tokens.

Ecosystem Trends Might Be Pushing NEO Price

There have been exciting developments in the Neo ecosystem that might increase its user base and mainstream adoption. Among these is the NeoChat instant messaging platform. NEO Blockchain recently launched a new instant messaging platform called NeoChat. 

Related Reading: 3 Reasons To Remain Bullish On Bitcoin In Coming Months

To celebrate the launch, it allocated 500 GAS tokens as rewards for early users of the platform. According to the announcement, NeoChat will allow users to communicate with each other using encrypted messages and a wallet address as their ID. 

The new platform offers a fast and secure communication channel for users. Users can access the service via a personal computer with the NeoLine Chrome extension or on Mobile devices via OneGate. 

NEO serves as a governance and investment token that allows people to participate in votes concerning developments on the blockchain. And these new developments might increase its usage as more people will vote with it or invest in it.

Also, there is an ongoing trading challenge in the network community after launching the Neo Perpetual Market on Demex. The trading challenge allows participants to win up to $300 from a $3,000 price pool plus rebates. It could be another point of attraction for users, encouraging more people to trade with NEO. 

However, these might be minor compared to the most recent development on the network. Neo Compounder went live on March 14 and was announced on March 22. It allows users to wrap NEO and bNEO into a cNEO token, enabling them to swap GAS for bNEO.

NEOUSD price chart

NEO Price Moves Following Improved Network Activities; Is $15 Possible?

Recent reports by show that network activity on NEO has been increasing. As of March 21, the cryptocurrency registered 59 new addresses and 3,606 transactions. On March 22, the network recorded 2,582 transactions and 84 new addresses, while on March 23 saw 99 new addresses and 3,744 transactions. These reports suggest the token’s Network activity saw improvement over the week, which might be behind its recent performance.

According to data from the Coincodex coin tracker, the sentiment is currently bullish for the token, while the Fear and Greed Index at 61 suggests greed in the market. NEO price increased by 8.07% yesterday, while historical data shows the token price has more than doubled since December 31. • 2023