Bitcoin is currently the center of attention, but smart investors have also noticed that Nexo’s token has gone up 480% in the last 3 months.
In the last three months, NEXO token, the native asset of Nexo’s blockchain-based lending platform, has increased by more than 480%. Since Bitcoin (BTC) traded for $10,000, NEXO’s price has closely followed BTC, but the performance is somewhat lackluster when compared to the 1000% seen in several DeFi tokens.
According to Coinmarketcap, Bitcoin’s market capitalization is currently $439,870,808,850.
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The project was initially unveiled by the European FinTech Group Credissimo in late 2017 and stated that it would offer „the world’s first instant loans backed by crypto currencies.
Founded by Cresissimo employees Antoni Trenchev, Georgi Shulev and Kosta Kantchev, the original purpose of the platform was to provide crypt-currency investors with a way to borrow against the value of their crypto assets rather than sell their assets and create a taxable event.
Originally, Nexo planned to launch a public presale and a major sale of tokens, but those plans were cancelled due to excessively high demand for their private sale to investors.
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NEXO followed a similar trajectory to most of the projects launched in late 2017 and early 2018, as the Bitcoin furor cycle unfolded. The value of the token increased from around $0.10 when it reached exchanges to over $0.40 in May 2018 before the reality of crypto-winter set in and the price of Nexo fell to $0.045 in September 2018.
Innovation seems to be driving Nexo’s pricing action
In late October, as Bitcoin prepared to move out of the $10,000 to $12,000 range, Nexo launched its ‚Nexonomics‘ initiative to help drive adoption of its token and platform. The idea was to progressively introduce improvements and new features to the platform until the end of 2020 to help boost tokenomics and promote the usefulness of the token.
The team also introduced their „Earn in NEXO“ program that allows users to earn an extra 2% APY if they choose to have all interest earned paid in NEXO.
Since the launch of Nexonomics, the price of NEXO has increased by more than 480% with its market capitalization rising from $68 million to its current value of $383 million in a period of three months.
During that time Nexo has also presented a significant increase in trading volume, going from an average daily trading volume of around 5 million dollars to its current volume of more than 30 million dollars.
Nexo and DeFi tokens look to ride the Bitcoin wave higher
As the crypto market heads into the last weeks of 2020 with Bitcoin successively reaching new all-time highs, Nexo seems well positioned to maintain recent gains and possibly rise further if there is renewed interest in DeFi platforms.
Analysts say that Mnuchin’s proposed law to ban self-custody of crypto currencies won’t affect Bitcoin’s price
In the last 6 months, many large institutions have opened important positions in Bitcoin and the FOMO surrounding cryptomonies could lead to projects like Nexo receiving extra attention because of the niche they occupy and the reliable interest they offer in deposits.
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