Over the past few days, the price of NEO Gas has risen significantly. At the time of writing this article, the price of Neo Gas is $16.86 USD while the price of NEO itself is currently $20. How will this help or hurt NEO?
Let’s talk about that!
What is Causing this Speedy Incline?
One of the reasons for this sudden rise is that recently GAS was listed on Binance. You can now trade BTC for GAS, the first exchange to offer this. This made it extremely easier to purchase GAS and because of this, the volume spiked. Look at the 24h volume for GAS in the chart below…
Currently, the 24h volume is over $6.5 million USD with almost 90% of the volume happening on Binance.
NEO Rebranding Complete
On August 8, NEO announced the completion of the rebranding efforts from its older “Antshares/Antcoin” identity. Furthermore, NEO has upgraded its blockchain nodes, technical documents, social media, official site and exchange name worldwide, representing the transition from Antshares 1.0 to the NEO smart contract system 2.0. If you look on the chart about, August 8th, is about the time when GAS started to explode, could these be related? Certainly! When the price of NEO rises, it looks like GAS follows in a similar fashion.
Since the NEO ecosystem has smart contracts now, new DApps are in the process of being created. The demand for GAS itself will continue to increase (which probably will increase the price of GAS) as more dapps are developed but the amount of GAS needed will decrease.
Arbitrary example: 0.1 GAS being used now, $17 GAS / .0001 GAS used in the future, $50 GAS
More DApps = higher demand for GAS = higher price of GAS.
Another NEO Conference?
The NEO team is going to Japan to explore Japan’s Blockchain innovation. Apparently, this trip is the first of many in a series of trips around the world.
“NEO aims to keep informed about the latest developments of Blockchain innovation and to foster international co-operations.” – Neo Council
With that being said, I think people are “buying the rumor” and if the news is anticlimactic, they will “sell the news” and take their profits. However, if the news is exciting and looks promising, then it will only drive the price up.
I will be keeping a close eye on all of this as it is still developing. Currently, it’s the next morning from what I wrote above and GAS is STILL rising! For more instant info, join our Facebook group where you’ll find the latest cryptocurrency info and news!