Nexo, a blockchain-based lending platform’s native NEXO token has increased by more than 480% in the past 3 months. Since Bitcoin initially traded for $10,000, the valuation of the NEXO too saw a similar resemblance. However, the largest cryptocurrency by market capitalization couldn’t come into competition with DeFi tokens that saw a booming gain of 1000% in 2020. DeFi’s NEXO token itself has rallied by 480% in the past three months.
NEXO Token Rallies 480% in 2020
In May 2018, NEXO’s value increased from its initial valuation of $0.10 to $0.40, followed by the dreary crypto lowdowns of that period. In fact, its valuation dropped down to as low as $0.045 by September 2018.
At the end of October, when Bitcoin was trading between the $10,000 to $12,000 range, Nexo launched a new initiative called Nexonomics to drive the adoption of its token and platform. The initiative included plans to introduce upgrades and new features to the platform by the end of the year to drive the tokenomics and promote the native token.
Besides, the platform also launched a new Earn in NEXO program enabling users to earn an extra 2% APY if they opt to have all interest earned paid in the NEXO token.
With the launch of Nexonomics, the price of the NEXO token resulted in the token’s valuation to increase by more than 480%. In three months itself, market capitalization increased from $68 million to its current valuation of $383 million.
In that same period, Nexo saw an increase in its trading volume from around $5 million to its current trading volume of more than $30 million.
World’s First Instant Crypto-Backed Lending Platform
Founded by the European FinTech Group Credissimo in 2017, Nexo blockchain claims to be the world’s first instant cryptocurrency-backed lending platform. The purpose of the platform includes allowing investors to borrow against the value of their cryptocurrencies compared to the traditional way of selling their assets and creating taxations.
Nexo had initially planned of launching a public presale and main token sale. However, the firm had to scrap off the plan due to the increasingly high demand from its private sale to investors.