NEO price rose by 25 percent on January 15 to a high of $180 but has since dropped to $126.6 according to CoinMarketCap as at the time of writing.
While the run could be due to speculative market trends, it could also be due to the advantages NEO presents to crypto users. However, the rise is notable given that the market has been undergoing what is perceiving as a market correction. For instance, the correction has wiped more than $50 billion from the market since January 13th.
Branded as the Chinese Ethereum and having rebranded from AntiShares last year, NEO promotes itself as a smart economy cryptocurrency. It is now the seventh in market capitalization amongst all cryptocurrencies, at $8.05 billion.
Also Read: Ethereum processes nearly half of all blockchain transactions, higher than 6 blockchain networks combined
Again, NEO has been very successful regardless of the fact that it is expecting to benefit from the size of the Chinese market. The second largest in the world and whose crypto markets have dwindled following a crackdown by the government. China has, not only banned ICOs from last year but also frustrated mining operations and crypto exchanges leading to the closure of many.
There are a few things that could make the cryptocurrency resilient in the future even in a dwindling market.
First, more ICOs would prefer to launch on NEO than other ETH platforms because of the advantages it offers. It is faster than many competing platforms and offers free transactions. Besides, holders of NEO earn dividends from the use of the NEO GAS.
Second, when compared to Ethereum, developers willing to launch smart contracts need to learn Solidarity programming language. But NEO uses C# AND Java, which are common and known by many. The latter two are also easier to digest for developers than Solidarity. In fact, some argue that if BTC were crypto 1.0, Ethereum crypto 2.0, NEO would crypto 3.0.