The current price slump in the entire cryptocurrency market has adversely affected NEO. The digital currency has fallen victim to the downside wave that is sweeping the prices of cryptocurrencies to ocean floor along with it. NEO has remained in the red throughout the week as the increased selling pressure has protected recovery attempts.
Experts in the field have linked the general sliding in prices across the crypto market to the falling Bitcoin price. The rest of the cryptos react negatively to the dropping price of the largest cryptocurrency by market capitalization. NEO/USD has dropped by 25% since March 13 to March 17. However, it is not only NEO that’s falling. Experts advise that altcoins will need to decouple from Bitcoin to avoid reaction fluctuations due to Bitcoin performance, although some say that this is not the time for such a move.
The “Chinese Ethereum”
NEO has come to be known as the “Chinese Ethereum,” although being in China has not done much good for the growth of the coin and technology. Consequently, NEO has emerged as the cryptocurrency that has the potential to conquer the best in the market from a heavily regulated nation. The good news is that NEO’s Onchain technology was created to be adaptive to regulations and has a centralized approach contrary to other digital assets. Onchain has a focus on the development of private and consortium blockchains tailored to various needs in the crypto space.
NEO’s Promising Potential
The potential of NEO is overwhelming, for instance, even with the depreciating prices in the market, NEO capitalization continues to grow. Moreover, the trading volume is the saving grace for the crypto standing at $107,457,000 in the last 24 hours. The sellers, however, continue to control the market and overwhelm the buyers. On the other hand, both the technologies; NEO and Onchain are set to revolutionize the blockchain industries. The two mechanisms are seeking to bring cross-chain interoperability which allows different blockchains to information and connect different businesses. “Digital Identity” is a feature that is incorporated in NEO blockchain to solve trust issues to interoperability. NEO could be the technology that will pave the way for the decentralized assets to meet and work with the much-needed regulations in the cryptocurrency market. There is a growing rift between the centralized regulators and the open-source system crypto enthusiast love.
Is NEO a Solution for China?
NEO is the core of Onchain much like DNA; it ensures that the decentralized public blockchains is provided for while Onchain is needed for private blockchains. Onchain was part of the companies that made through the much-regarded China blockchain test and later partnered with Fosun Group. Although China has been tightening its rules on cryptocurrencies, there is a clear path that blockchain adaptability is imminent. In the recent past, the government has been reported to consider alternative solutions for the growing cryptocurrency industry. Besides, the government welcomes blockchain companies open to regulations to come forth.
The Real Picture
The technical strength of both NEO and Onchain provide a promising future for the community. The technology is attractive to the China authorities as well. The cryptocurrency market is highly speculative, and there are growing uncertainties due to regulations. However, one thing that is evident is that the industry will continue to grow; it will be beneficial to all parties for cryptocurrencies to work closely with the regulators to ensure success. NEO has already positioned itself as a solution for this kind of integration. NEO market capitalization will continue to grow; however, the speed of the growth will depend on how quickly NEO integrates with other traditional industries. NEO has the potential to become the number one cryptocurrency. Although, only time and innovation will tell.
Do you believe NEO will make the top five cryptocurrencies? Leave your honest comment and opinion.