Over the previous three months NEXO token, the native asset of Nexo’s blockchain-based lending platform, has elevated by greater than 480%. Since Bitcoin (BTC) traded for $10,000, NEXO worth has intently tracked BTC however the efficiency is considerably lackluster when in comparison with the 1000% rallies seen from a handful of DeFi tokens.
NEXO/USDT every day chart. Supply: TradingView
The venture was initially revealed by the European FinTech Group Credissimo in late 2017 and claimed it could provide “the world’s first instantaneous crypto-backed loans.”
Based by Cresissimo workers Antoni Trenchev, Georgi Shulev and Kosta Kantchev, the unique function of the platform was to supply crypto buyers with a approach to borrow towards the worth of their crypto belongings versus promoting their belongings and making a taxable occasion.
Initially, Nexo deliberate to launch a public presale and predominant token sale, however these plans have been canceled as a result of exceedingly excessive demand from its non-public sale to buyers.
NEXO adopted a trajectory that was much like many of the tasks that launched on the finish of 2017 and early 2018 because the Bitcoin hype cycle was unfolding. The token’s worth elevated from round $0.10 when it first hit exchanges to over $0.40 in Might 2018 earlier than the fact of the crypto winter set and Nexo’s worth dropped as little as $0.045 by September 2018.
Innovation seems to be driving Nexo’s worth motion
In late October, as Bitcoin was making ready to interrupt out of the $10,000 to $12,000 vary, Nexo launched its ‘Nexonomics’ initiative to assist drive the adoption of its token and platform. The concept was to progressively introduce upgrades and new options to the platform by means of the tip of 2020 in an effort to assist drive the tokenomics and promote the utility of the token.
The staff additionally launched its “Earn in NEXO” program which permits customers to earn an additional 2% APY in the event that they opted to have all curiosity earned paid in NEXO.
Because the launch of Nexonomics, NEXO worth has seen a rise of greater than 480% with its market capitalization rising from $68 million to its present worth of $383 million over a three-month interval.
Throughout that point Nexo has additionally seen a major improve in buying and selling quantity, rising from a every day common buying and selling quantity of round $5 million to its present quantity of greater than $30 million.
Nexo and DeFi tokens look to trip the Bitcoin wave increased
Because the crypto market heads into the ultimate weeks of 2020 with Bitcoin reaching successive new all-time highs, Nexo seems well-positioned to carry on to current beneficial properties and probably head increased if there’s a renewed curiosity in DeFi platforms.
Up to now 6-months, quite a lot of massive establishments have opened sizable Bitcoin positions and the FOMO surrounding crypto might end in tasks like Nexo receiving additional consideration because of the area of interest that they fill and the dependable curiosity they provide on deposits.
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