Last month saw many surprises which took the cryptocurrency industry by storm. This “love month”, an altcoin is surprising investors with a sudden spurt in price.
GAS, one of the native tokens of the Neo Blockchain ecosystem, has jumped by more than 76% in the daily time frame, at the time of writing.
According to CoinGecko, this made the token outperform the broader crypto market by 5% as major cryptocurrencies like Bitcoin and Ethereum slump due to their respective resistances.
The recent bullish price movement of GAS can be attributed to Neo’s take on Web3 development.
Neo’s Two-Token System: How Does It Work?
According to their website, Neo is built with one thing in mind: to create a solid foundation for the next-generation internet. For the community-driven protocol to make this vision a reality, it devised a two token system for the ecosystem to thrive. NEO and GAS work together to bring a streamlined user experience on-chain.
NEO is the ecosystem’s governance token, designed to be used in staking and in voting for changes to be implemented. Limited to a total supply of 100 million, this would be the backbone in which Neo’s innovative blockchain would be built upon.
$gas just did 300% today :). what a green dildo!! so soooooo happy, and took profits .. 2yrs accumulating this coin (along with $neo / $gas) …. very happy for todays move! pic.twitter.com/yDwMxyPMDX
— Jose Fajardo 🇺🇦 (@josefajardo) February 9, 2023
Once the NEO token is staked, the user is eligible to receive GAS in return. This token is Neo’s utility token, used in daily transactions on the blockchain. For every block mined on the blockchain, five GAS tokens would be minted that will be distributed to beneficiaries of the network.
GAS At $4.84 – Can The Token Hold Out?
At the time of writing, the token has been rejected at $8.587 which is inevitable as investors would start exhibiting profit taking attitudes in the short term. With Twitter users being overly bullish in the short term of the token, investor sentiment at the moment is quite euphoric.
Investors and traders should then be careful of the token’s short term as more eyes gather attention on GAS. This in turn would contribute to the sell pressure on the market. Once the inevitable correction phase of GAS begins, GAS bulls should be able to see support at $3.
Crypto total market cap at $968 billion on the daily chart | Chart: TradingView.com
However, this support line is weak which could make the token revert back to the $2.4 support range. Investors and traders should then be careful in investing on GAS and should familiarize themselves with Neo’s tokenomics.
As more information and on-chain developments unfold for Neo, GAS and NEO might experience independent price movements. With Neo’s commitment to building the next-gen internet, the long-term prospect of GAS might be bullish.
Featured image from Reuters