In the past three months The NEXO token, the native asset of Nexo’s blockchain-based lending platform, is up more than 480%. Since Bitcoin (BTC) began trading for $ 10,000, NEXO’s price has come very close to BTC’s, but performance is a bit lacking when compared to the 1000% seen on various DeFi tokens.
According to Coinmarketcap, Bitcoin’s market cap is currently $ 439,870,808,850.
The project was originally announced at the end of 2017 by the European FinTech group Credissimo and stated that they “the world’s first crypto-backed instant loan“.
Founded by Cresissimo employees Antoni Trenchev, Georgi Shulev and Kosta Kantchev, The platform’s original purpose was to allow cryptocurrency investors to borrow against the value of their crypto assets, rather than selling their assets and creating a taxable event.
Nexo originally planned to start a public pre-sale and main token sale, but those plans were canceled due to the excessive demand for private sales to investors.
NEXO followed a similar path as most of the projects that started in late 2017 and early 2018when the bitcoin pig cycle unfolded. The value of the token rose from around $ 0.10 when it went public to over $ 0.40 in May 2018, before the reality of the crypto winter set in and the price of Nexo fell to $ 0.045 in September 2018.
Innovation seems to be driving Nexo’s price movement
In late October, as Bitcoin was preparing to break out of the $ 10,000-12,000 range, Nexo launched its “Nexonomics” initiative to drive adoption of its token and platform. The idea was to gradually introduce improvements and new features on the platform by the end of 2020 to advance tokenomics and promote the usefulness of the token.
The team also presented its program “Earn in NEXO“What Allows users to earn an additional 2% APY if they choose to pay any interest earned in NEXO.
Since the launch of Nexonomics, the price of NEXO has increased by more than 480% with a market capitalization that rose from $ 68 million to its present value of $ 383 million in three months.
During this time Nexo also saw a significant increase in trading volumefrom an average daily trading volume of around $ 5 million to a current volume of more than $ 30 million.
Nexo and DeFi tokens are trying to ride the Bitcoin wave higher
While the cryptocurrency market is moving into the final weeks of 2020 and Bitcoin is gradually reaching new highs, Nexo appears well positioned to sustain recent gains and potentially rise if interest in DeFi platforms is renewed..
In the past 6 months, many large institutions have opened significant positions in Bitcoin and the FOMO that surrounds cryptocurrencies could lead projects like Nexo to receive special attention due to the niche they occupy and dependable interest in deposits.
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