NEO’s GAS surges 182%: exploring possible drivers

Markets are swinging higher driven by fundamental factors. Recent rallies, especially in Solana (SOL), have triggered a resurgence in layer-1 networks. Legacy blockchains like NEO’s GAS surged by 182% last month. Can GAS outperform new projects like Galaxy Fox (GFOX)?

NEO’s GAS surges 182%

Neo is a blockchain network launched in 2016 as a scalability-focused alternative to Ethereum, sometimes called the “Chinese Ethereum.” GAS fuels transactions on Neo blockchain and also provides governance rewards for participants.

Despite skepticism towards Neo rivaling struggling predecessor EOS, GAS has recently seen a notable price surge. This comes as Neo prepares to launch an Ethereum Virtual Machine (EVM)-compatible sidechain to improve interoperability.

Because all activity on this new sidechain requires GAS to pay fees, investors anticipate substantially increased GAS utility and adoption. Heavy accumulation has occurred on the Korean exchange Upbit, driving prices higher amid speculation.

While increased GAS usage should also boost demands for NEO, given Neo’s underlying role, the two tokens have diverged lately as GAS directly unlocks functionality. 

Some are questioning the sustainability of the utility rally and its comparison to newer blockchain projects.

Galaxy Fox funding

Galaxy Fox offers a web3 runner game and innovative tokenomics. Like GAS, GFOX, the platform’s native token, has been inching higher. At this pace, analysts believe GFOX will extend gains throughout 2023 and 2024. 

Beyond its play-to-earn rewards for top-ranked players, Galaxy Fox offers staking rewards and has adopted a deflationary mechanism. This combination of features could explain the rising interest among investors.

While Galaxy Fox has a significantly smaller market cap than established cryptocurrencies like Neo, analysts believe its growth potential remains immense. 

Moreover, while Neo has grown, GFOX is still in its presale phase. Accordingly, some analysts think the token has more upsides as the market recovers.

Closing thoughts

Whales tend to prefer new protocols over old ones because the former has a much higher potential for growth. To maximize returns in this cycle, investors can focus on small caps and presales of ongoing projects like Galaxy Fox.

Learn more about GFOX here:

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