What is the price of NEO?

As China’s first-ever public blockchain, Neo has experienced various up and downs. In terms of price, it achieved its all-time-high in the infamous bull market of 2017/2018. Since then, NEO's value has fluctuated. This guide explains NEO's price history and influences on its price movements.

The NEO price history

Like any other cryptocurrency the value of NEO fluctuates heavily. Since its establishment in 2016, NEO has been exposed to various price fluctuations. In this aspect, NEO has not been able to differentiate itself from other cryptocurrencies, which have also been exposed to massive price swings since the last bull run.

1: The origins of NEO

NEO is a blockchain network and a cryptocurrency of Chinese origin. It is commonly known as the Ethereum of China because of the similarity of the technologies used. In 2016 NEO’s ICO, which is a form of crowdfunding, raised a total amount of 6119 BTC. This created a total of 100 million NEO tokens. Since October 2016, NEO's digital currency has been tradable on online exchanges. At that time, the coin was launched on the market with a value of $0.08 per coin.

2: It’s all-time-high

In 2017, the price of NEO rose to great levels, like most other cryptocurrencies. During its peak, the value of one NEO token reached the value of $206. That was a enormous run upwards given that the price of one NEO token was twelve dollar in September ’17. A stunning 1700% increase in price in less than four months. This established NEO in the top 20 cryptocurrencies in terms of market value, what generated quite the media exposure.

Description

2: After the bull cycle of 2017/2018

After the crypto crash early 2018, which caused a multi-year bear market, NEO held its own for quite a long time compared to other cryptocurrencies. In May '18, NEO was still at $90, a drop of just over 50%. After May, the real bear market began for NEO, where NEO's value dropped drastically to a low of around $3 in March'20. In 2020, a new bull market began which resulted in many cryptocurrencies recovering in price, including NEO. Nevertheless, at $60 in early 2021, the price of an NEO was far from reaching the all-time high.

Description

How is NEO’s price influenced?

As we mentioned before, NEO has been subject to a heavy price correction because of the most recent bear market. In a bear market the price of almost every currency drops. However one currency can drop faster than the other one. This could have several reasons per coin. Below you'll find the factors which have an effect on the price of NEO.

Chinese authorities

As we mentioned before, NEO is of Chinese origin. NEO's robust growth in 2017 was partly initiated by Chinese and Korean investors. These investors transferred the money away from China. Chinese government was displeased about this because they want to keep Chinese money circulating in the economy. Therefore, China has introduced strict regulations, enabling the Chinese government to have much more control over the cryptocurrency market.

NEO has won the trust of the Chinese government by strictly adhering to her regulations. Because the Chinese government is sceptical about other cryptocurrencies, new regulations may have a positive effect on NEO, as they are likely to face milder to no penalties. Cryptocurrencies are sensitive to Chinese regulations anyway, as the market is enormous due to China's population. Therefore, any decision from the Chinese government could have an effect on NEO, as NEO is seen as the main official cryptocurrency of China.

Description

Competitors

NEO's strongest competitor is Ethereum. When the price of Ethereum goes up, this may indicate a bearish scenario for NEO. In addition, to Ethereum, NEO has many other formidable competition that is trying to conquer the crypto market with similar technology. Coins like Cardano, Ethereum, Ripple, etc. are well established in the crypto space and therefore can be of influence for NEO's value. If competing currencies are further along in their roadmap than NEO, NEO's value may be affected.

Hard-capped supply

Scarcity can drive prices of a commodity. The best known example is Bitcoin, of which there are only 21 million tokens in total. Prices therefore can rise quickly and NEO, with its 100 million tokens, is also subject to a hard-capped supply. Due to the large impact of limited supply, this can have an effect on the price of NEO.

2021 Bears and bulls

On the 1st of January, NEO was trading at $14 per coin. However, like many other cryptocurrencies, NEO began a hard price rally in 2021. Its value increased tremendously in a short period of time with NEO reaching a high of $141 on 7 May 2021. this figure was $65 below the all-time high of 2018, but was still 880% higher than at the beginning of 2021.

The price rally was halted in May 2021. the entire crypto market was struck by a correction, leading to most cryptos falling harshly in value. This included NEO, which suffered a 75% correction between May 7 and 24. As a result, NEO's value fell to $35. Since then, the decline has been stabilised and the price has been fluctuating a little. Therefore, it is impossible to predict whether the price will reach new highs or slip back to old lows.

The future of NEO’s price

NEO's future is predicted to be bright, partly because of the support it receives from the Chinese government. On the other hand, If the Chinese government decides to apply stricter rules to crypto, this may have a negative impact. Experts also say that NEO's technology is more advanced than that of its competitors. In the crypto world, it is impossible to predict exactly what NEO's value will be, but the indications are promising.

Description