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Footprint Analytics: The state of NEO five years later

Despite being one of the first blockchains to hit the market, NEO has fallen behind Terra, BSC, Avalanche, and Solana in attracting various projects to its ecosystem. NEO’s TVL has also declined sharply despite an opposing industry-wide growth trend.

Where did this platform, which once looked like it could compete with Ethereum, go wrong? And could the latest upgrade succeed in attracting more projects and developers?

What is NEO

NEO, formerly known as Antshares, is a blockchain platform, cryptocurrency, and network for building decentralized applications (dApps).

It integrates digital assets, digital identities and smart contracts into an ecosystem that enables a distributed network.

Through a number of upgrades, from renaming NEO to N3 and mass migration, NEO has evolved to improve its stability.

Screenshot source: Development history of NEO

According to Footprint Analytics, NEO’s most recent update and migration in September saw TVL decline rather than growth as the industry advanced, with TVL of $ 50.43 million on Dec. 20, compared to a TVL growth rate of -84 %. from May 6th.

However, NEO’s TVL is on a downward trend closely related to its economic model and ecosystem development.

Footprint analysis: NEO TVL

The NEO economic model

NEO N3 has inherited its economic model from NEO Legacy, with a dual token model, NEO and NeoGas (GAS), using NEO for governance and GAS for circulation.

According to NEO, the upgrade has streamlined the ecosystem’s economic model by increasing community participation in governance. Now 80% of the GAS generated from each block is distributed to the voters who vote for the NEO board, 10% is distributed to all board members, and the remaining 10% is distributed to all NEO holders.

This dual token model encourages long-term holding through NEO dividends while enticing more users to join the ecosystem.

Current NEO data performance

According to Footprint Analytics, NEO’s token prices and trading volume are as follows:

  • Token Price: NEO peaked at $ 122.45 on May 7 before going live on the mainnet, and the price trend has collapsed since then, with the current price still standing at $ 25.80 on December 20.

Footprint Analytics: GAS Price & NEO Price

  • Token trading volume: The current month is the lowest activity level of the year and reflects NEO’s low trading volume. The trading volume on December 20 was $ 180 million, but that’s a respectable volume compared to that of Fantom ($ 250 million on December 20), a top 10 chain.

Neo

Footprint Analytics: GAS Trading Volume and NEO Trading Volume

The importance of Flamingo Finance for NEO

Neo

Footprint analysis: Flamingo Finance TVL

Compared to chains with DeFi, GameFi, and NFT use cases, NEO’s ecosystem is relatively simple. According to footprint data, NEO’s TVL comes primarily from Flamingo Finance. It matters 100% from NEOs TVL.

The NEO Foundation announced its investment in the incubation of Flamingo Finance (referred to as Flamingo), a NEO-based DeFi platform, which is a comprehensive DeFi protocol that integrates cross-chain assets, AMM, synthetic stablecoin, contract trading and promise rewards.

Flamingo will leverage Poly Network’s cross-chain protocol to enable cross-chain trading support in the DeFi ecosystem, where users can use assets like BTC, ETH and stablecoins as pledges. Provide liquidity for Flamingo asset transactions resulting in FLM token rewards.

State of NEO

Footprint Analytics: FLM Price & Trade Volume

According to Footprint Analytics, Flamingo’s token FLM price has been under $ 1 since its inception, with an average trading volume of between $ 20 million and $ 30 million.

On December 6th, Flamingo completed a major upgrade to the NEO N3 mainline and began migrating assets from NEO Legacy to NEO N3. The FLM incentives generated during the migration will be gradually migrated from NEO Legacy to NEO N3 within 30 days.

Flamingo can grow depending on the depth and scope of its community involvement and must bring in more high-quality assets from other blockchains as well as new protocols or products in order to participate in the building of Flamingos DeFi in order to receive more growth opportunities.

Conclusion

NEO is one of the earliest blockchain projects that offers an intelligent contract platform with stable operation and sensible allocation mechanisms. However, compared to fast-growing public chains like Terra, Avalanche and Solana, NEO is very undiversified, with only one large project – Flamingo Finance – sustaining the ecosystem.

To grow, NEO

  • Introduce more high quality assets and projects to the ecosystem.
  • Accelerate the decentralization of the ecosystem.
  • Focus on solving the problems of Ethereum congestion and high gas fees to attract more projects.

What is footprint analytics?

Footprint Analytics is an all-in-one analysis platform to visualize blockchain data and gain insights. It cleans up and integrates on-chain data so users of all skill levels can quickly start looking for tokens, projects, and logs. With over a thousand dashboard templates plus a drag-and-drop interface, anyone can create their own custom charts in minutes. Discover blockchain data and invest smarter with footprint.

Footprint website: https://www.footprint.network

Discord: https://discord.gg/3HYaR6USM7

Twitter: https://twitter.com/Footprint_DeFi

Telegram: https://t.me/joinchat/4-ocuURAr2thODFh

Disclaimer: The author’s views and opinions should not be construed as financial advice. We do not advise on financial products.

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