Should You Add NEO Token to your Portfolio?
One exciting thing about the crypto market is traders have diverse tokens to choose from when trading. Asides from the top coins according to market cap, there are a few small-cap coins making waves. Despite not being popular, these coins show promise and bring in massive amounts of returns.
Another thing that traders want while picking these coins is their potential for the future. This is because coin-making waves might undergo one bearish trend and remain stuck in the trend. This is why traders need to pick out coins with the best potential if they are to back a new token in the long term. In this article, we will be looking at NEO, its potential, and if it is a coin for the future.
What is the NEO Token?
NEO is a blockchain project that was created by developers in China in 2014. NEO is a digital asset as well as a network for Dapps. Before it was renamed to NEO, it was previously called Antshares. Analysts referred to it as the Chinese Ethereum because it fulfilled some criteria in creating smart economies. This was because one of the missions of its developers was the ease of deploying smart contracts on its blockchain.
Traders that want to use the NEO blockchain will have to make use of GAS. The GAS is regarded as the fuel behind the NEO blockchain. NEO uses a proof of stake consensus mechanism on its network. This means that for every NEO a trader adds to his wallet, he receives the same amount of GAS that can be used on the network.
With this, traders can generate passive incomes, which means a rise in both tokens will benefit them. This is the major reason why many traders have chosen NEO over the years since its launch. However, one thing to note is that traders can no longer mine new NEO tokens. This is because the developers distributed all the tokens during their ICO.
Price History Of The NEO Token
The NEO token, like other tokens in the market, is often controlled by volatility. As far back 2020, the token began the year trading at around $10. Fast forward to two months later, the coin was trading at a low price of $4. The token further saw a huge climb to sell at $25 in September. December was another defining period for the token as it finished the year on $14.
One spectacular thing that traders have noticed is that most small-cap coins tend to follow the same trend line with Bitcoin. This means that the volatility in the token price in 2020 was a mirror of Bitcoin’s performance. A typical example was the coronavirus pandemic, which affected Bitcoin also affected NEO.
Some major performances of the token have been as a result of major developments on the blockchain. For instance, after developers rebranded the token in 2017, it went as high as $196 around January 2018. Since the period, the market has only corrected, and the token is presently trading at $48.
Analysts predict that the token should be able to repeat the price in April and May 2021 in January 2022. The token traded at $130 during those periods. This new prediction means that the token is set for a 150% increase from its current price. The coin has also been tipped to touch close to $200 by 2025. This means that the coin would have to surge as high as over 200% of its current price.
Is The NEO Token Worth Holding?
Analysts have earmarked NEO as a token with potential. The majority of traders are also holding it long-term as they see it as one for the future. However, it is not a token that can trade as high as $1,000 in the next ten years. Also, if its developers are successful with the NEO 3.0 upgrade, it will be a game-changer. This is because they would be able to seduce investors, which could change its whole outlook. Another reason why NEO is worth holding is the dividends that traders can earn in GAS. Traders can take advantage of the current price of NEO to scoop as much as they can now. If the coin eventually makes a surge above, it will increase their GAS price, giving them more returns.
Even though Ethereum is still the pick of developers when creating projects, NEO is presently on its way to rival it. Going by the various price analysis above, the price of one NEO token should be hitting close to $100. This means that the coin could do as much as an x2 of its current price. This makes NEO an excellent investment on a long-term basis. Asides from investing, NEO has also been able to create an enabling environment for developers. Even with the opinion above, you can still open up your options and research the coin before choosing to venture into it.
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