NEON Token Soars by 2000% in 3 Months for BYBIT:NEONUSDT by DEXWireNews

NEON

has become one of the best-performing tokens on the Solana blockchain, making it into the top 500 in market capitalization, as ranked by CoinGecko. This piece will examine the growth drivers of NEON and assess the potential for further investment opportunities in the project.

Background

Neon was among the crypto projects that conducted a public token sale through Coinlist, the largest ICO platform. The token sale on June 8 saw 50 million tokens up for grabs. The Neon protocol itself is an EVM platform for crypto projects on the Solana network, enabling Solana users to deploy smart contracts in the Solidity programming language compatible with Ethereum.

NEON

‘s ICO price was set at $0.10 for investors. However, 99% of the token sale spots were reserved for a priority queue, accessed by those who joined Neon’s Discord before the ICO announcement.

The OTC purchase price for such an account was between $300-$600, making the real cost of each coin during the sale approximately $0.20-$0.25.

What Led to NEON’s Remarkable Growth?

NEON

reached its all-time low on August 30, priced at $0.052 per token. Following this, the coin began an active ascent, further accelerated by the upward trend in Bitcoin (BTC). This uptick in BTC led to a surge in demand for popular altcoins, including Solana (SOL), which itself saw a 300% increase from October 15 to December 20.

The correlation between

SOL

and its Solana-based counterpart

NEON

propelled

NEON

to a significant market capitalization of $90 million:

Key factors that significantly influenced NEON’s explosive growth include:

1. Limited availability of coins for sale. Apart from ICO participants on Coinlist, the token was scarcely held by others, as indicated by its tokenomics. Most partners and investors were subject to a lock-up period of over a year;

2. Small market capitalization;

3. Lack of similar offerings within the Solana ecosystem;

4. Overall positive trend in the cryptocurrency market.

Will

NEON

Continue Its Upward Trend?

It’s essential to consider both the project’s fundamental aspects and technical analysis. Technically, buying

NEON

in the spot market seems promising, particularly in the $0.7-$1.0 price range:

Given the range of crypto projects in the Solana ecosystem,

NEON

has the potential to increase its market capitalization to between $150-$200 million. However, this hinges on BTC avoiding a significant correction that could negatively impact $SOL.

Monitoring the TVL of the

NEON

network is also crucial. If locked funds and the number of projects on the network steadily increase, it could further boost

NEON

‘s upward trend. Additionally, investors should watch for tokens of projects launched on Neon, such as Moraswap, Sobal, zkUSD, among others.