Neo Jumps 9% After Strategic Partner Company Launches Mainnet
Neo, the 12th largest cryptocurrency by market cap, surged in value Monday after one of its partner projects launched a successful mainnet. Although the two events – the launch of Ontology and Neo’s price appreciation – do not appear to be linked, infrastructure projects with long-term upside are generating more excitement amid the latest market downturn.
Neo Price Levels
The value of Neo jumped more than 9% Monday en route to its highest level in over a week. At the time of writing, Neo was worth more than $33. By comparison, the broader cryptocurrency market was little changed compared with 24 hours earlier.
At present values, Neo has a total market capitalization of $2.2 billion, according to CoinMarketCap. The digital currency saw daily trade volumes of more than $85 million.
Binance is the largest market for Neo transactions; the exchange processed more than one-third of the currency’s daily turnover.
Ontology Goes Live
Ontology, a Shanghai-based project working closely with the developers behind Neo, launched its live network on June 30. In doing so, it becomes the latest blockchain infrastructure project to put its ambitious blueprint into action.
While lesser known than some of its infrastructure alternatives, Ontology’s native ONT coin has quietly emerged as one of the largest cryptocurrency projects on the market. The blockchain is currently valued at roughly $760 million, placing it 21st among active digital currencies.
The enterprise-focused blockchain seeks to address scalability issues facing decentralized networks. Its “high-performance public blockchain” will allow companies to scale their applications to enterprise-grade levels.
Last month, Ontology and Neo came together to produce NeoVM and NeoContract, which have been described as essential elements of the Neo platform. A spokesperson for Neo has described the two companies as “strategic technology partners.”
Like Neo, Ontology’s network will one day support two tokens. At present, only ONT exists.
Infrastructure Projects Undervalued
Infrastructure projects have been highly touted by Ran Neu-Ner, the CNBC Africa Crypto Trader host who correctly predicted bitcoin’s latest correction to $5,900.
In a recent interview with CNBC, Neu-Ner said there was a strong probability that bitcoin values will continue to depreciate while infrastructure projects like Neo and Cardano will pivot higher. Neu-Ner said he was “very bullish” on both cryptocurrencies because infrastructure projects are “really undervalued.”
With respect to bitcoin, the technical indicators are calling a “62% chance of a bear market, and a bear market means we are going to test $5,350 as the next point.” Neu-Ner did not provide a price outlook on either Neo or Cardano.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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