NEO has long been considered as one of the most successful blockchains that came out of China, dubbed as the “Ethereum of China” it bears some resemblance to the Ethereum blockchain. In this article, we will be doing an analysis of the NEO price prediction for the foreseeable future and what we think the coming years hold for the well-known crypto.
It was founded by 2014 by Da Hongfei and Erik Zhang as “Ant Shares” and rebranded in 2017 into its current name. It seeks to create a “smart economy” in a distributed network comprised of three distinct components: Digital Assets, Digital Identity, and Smart Contracts built on top of a more scalable consensus protocol called Delegated Byzantine Fault Tolerance (dBFT) which is its primary advantage over Ethereum.
Life-changing ICO Investment
Historically speaking NEOs Initial coin offering gave its early investors one of the highest returns on investment (ROI) of all time which at the current price is around 31,000%. At the time it reached its all-time high on January 31st, 2018 the ROI was around 378,453% making it the third biggest in cryptocurrency history. These figures were based on its original ICO price which was around $0.032 USD. NEO ranks as the 21st crypto in terms of market capitalization and with the impending release of NEO 3.0, we might see some very interesting price movement from NEO in the coming months ahead.
While it is difficult to determine the future price of any cryptocurrency, we can take a peek at the latest plans and developments of the project as well as what it has done so far to get a general sense of its price movement in the future. The sentiment of many industry pundits is very bullish this year with most predicting that cryptocurrencies are poised to undergo another stellar bull run later this year and NEO is a prime candidate to benefit from such an event based on historical data and what it plans to accomplish in the following months.
2020 NEO Bullish Year
2020 was generally been a good year for NEO whose price is up around 50% from its previous price a year ago. Increasing from around $7.00 USD in January 2019 to $11.22 USD at the time of this writing. Interestingly, the price charts show a strong correlation between the prices of NEO and Bitcoin, which was most evident during the July and November 2019 price surges. The halving event of BTC mining rewards should give NEO investors a more bullish outlook on their investments as it means that the price of BTC is likely to increase the following months.
Historically speaking each halving event is usually followed by a sudden increase in Bitcoin prices several months after this event. It happened during the first halving event in 2012 and after the second one in 2016. Now that bitcoin is due for another one, many investors are already anticipating that history will repeat itself. NEO’s strong price correlation with BTC will surely be a plus factor for the project, however, it is not the only good thing that it has going for itself. NEO 3.0 is scheduled to be released on Q2 2020 and a $100M EcoBoost Fund has been initiated to improve the NEO ecosystem.
This NEO price prediction wouldn’t be complete if we didn’t take a look at the future development plans for NEO (also known as NEO 3.0). So let’s jump right into that…
The idea of NEO 3.0 has been floated around in the middle of 2018 which seeks to offer enhanced features compared to its current version. Listed below are some of the features that the NEO development team plans to implement on the new version of their blockchain.
- The introduction of Delegated Byzantine Fault Tolerance 2.0 (dBFT 2.0). It is an upgraded version of the dBFT consensus mechanism designed and invented by one Erik Zhang for NEO. The development of the consensus protocol began in Q4 of 2018 and was completed in Q1 2019. Aside from carrying all the features of the original consensus protocol dBFT 2.0 added a recovery mechanism making the consensus algorithm more stable.
- A new pricing model will be implemented. It seeks to reduce the deployment and execution cost of smart contracts. According to the development team, the relatively high cost of deploying and running a smart contract has been one of the major pain points of NEO developers. With the new model, they hope to stimulate Dapps growth and expand the application scenarios of gas.
- Neo 3.0 will also have a built-in Oracle which will allow smart contracts to access information coming from outside of its blockchain. With this new feature, smart contracts can access internet resources which will greatly expand data sources that can be processed within a blockchain. This will enable developers to create more diverse DAps that rely on external data.
- P2P Protocol improvement will also be implemented in the new version NEO. UDP communication protocol will be supported and compression options. With this improvement, the team hopes to improve transaction throughputs and increase network stability.
- NEO 3.0 will also feature a full decoupled NEOVM which will become pure virtual machines. By doing so native contracts can easily be implemented, VM applications outside the blockchain and smoother integration to any IDE. This will allow the debugging of smart contracts without having to load data from the blockchain.
- NeoFS is another feature that will be included in the new version of NEO. It is a scalable and decentralized storage network that will leverage NEO’s smart contract that will enable users’ storage facilities without depending on any intermediary.
Neo 3.0 will retain many features from the previous version of the project such as NeoID, a decentralized identity protocol that leverages the NEO blockchain and undergo re-engineering of its architecture particularly in the department of asset creation. NEO 3.0 will not anymore support global assets created via RegisterTransaction as it is rarely used and will instead use smart contracts for assets creation which the developers claim to be more flexible and functional. Migration to NEO 3.0 is inevitable and the NEO team is now exploring ways how to make the migration process easier and cost-effective.
Another interesting initiative that should stimulate growth in the entire NEO ecosystem and may result in a more positive price movement is the NEO EcoBoost. It is a $100M fund created for the primary purpose of providing financial assistance and support to developers and project participants of the NEO ecosystem. It will provide entire life-cycle support to both startups and high-promise projects. The NEO team plans to leverage this fund to expand and diversify its user base. This will be the cornerstone of developing the NEO community.
NEO Ecoboost is divided into three phases the first one being the “Partner Recruitment phase” where NEO seeks long-term partnerships with various blockchain industry players. These include Dapp information sites, media outfits, wallet providers and established crypto exchanges. The second phase is called the “NEO Project Recruitment”, this phase entails the recruitment of teams that build projects within the NEO ecosystem. The last phase is dubbed as “Acceleration” with the primary aim to promote NEO projects with the help of its Partners.
Ultimately, one of the biggest factors when considering a NEO price prediction is the actual usage of the blockchain and crypto. The fact there is significant money being throwing at building a developer ecosystem around NEO is quite encouraging.
NEO Price Prediction Conclusion
The big question is what will be the price of NEO? There is no simple answer to that question as many factors are at play when considering a highly volatile asset, however, it seems that the latest plans of NEO have been positive price-wise for the project. While the effects of these initiatives will take some time before they can be felt in the whole NEO ecosystem some are already placing their bets on NEO which has proven in the past to be a great investment. Only time will tell if history will repeat itself but all things considered, we are expecting some great price movement from NEO in the following months ahead.