NEO's Price Surges by 17% Following Announcement of Ethereum Compatibility
Date: 2023-10-27 Author: Dima Zakharov Categories: BLOCKCHAIN, BUSINESS
Support for Decentralized Ethereum Applications: NEO Gains Significance in the World of DeFi
The NEO blockchain platform has taken a significant step in its development by announcing the creation of a sidechain that will ensure compatibility with the Ethereum network. This move promises to drive innovation in decentralized finance (DeFi) and increase competition between NEO and Ethereum.
The NEO team is developing a sidechain designed to support decentralized Ethereum applications and ensure compatibility with NEO's own mainnet, N3. This announcement was made by NEO's founder, Da Hongfei, who referred to it as a "New Chapter" for the project. It's important to note that NEO plans to launch the sidechain's testnet by the end of 2023.
Protection Against MEV Attacks and Ethereum Virtual Machine (EVM) Features
One of the key features of NEO's sidechain is its ability to integrate protection against attacks that use the Maximum Extractable Value (MEV) mechanism and Ethereum Virtual Machine (EVM) capabilities. This feature aims to enhance security and privacy for users while improving the DeFi user experience.
NEO Price Surge Following the Announcement
The announcement of the development of a sidechain compatible with Ethereum had a significant impact on the price of the NEO token. Within one day of the announcement, the price of NEO surged by 17.2%, reaching approximately $9. This noticeable increase in NEO's value generated considerable interest in the cryptocurrency.
However, it's worth noting that despite this surge, the price of NEO is still approximately 95% below its all-time high of $198.4, which was reached in January 2018. This indicates the potential for further growth if the project continues to develop successfully.
NEO Cryptocurrency and Market Capitalization
At the time of the announcement, NEO's market capitalization stood at around $637.5 million, and the cryptocurrency was ranked 68th among cryptocurrencies. With the development of the sidechain and compatibility with Ethereum, NEO has the potential to become a more significant player in the cryptocurrency market.
Competition with Ethereum in the DeFi Space
It's also essential to consider that back in October 2020, NEO had already laid the foundation for potential competition with Ethereum in the DeFi space, as stated by the project's founder. With the plans associated with the new sidechain, NEO could become a serious competitor in this area.
Integration of Digital Gold Blockchain with EVM
Finally, it's worth noting that the ideas surrounding the integration of the digital gold blockchain with the Ethereum Virtual Machine (EVM) are generating interest within the cryptocurrency community. These solutions are gaining support from experts and could contribute to the development of more complex and exciting cryptocurrency projects.
