Neo Network: With this upgrade, will NEO defy broader market sentiment

The year 2022 has been marked with a series of upgrades and hard forks for many blockchains. The latest chain in town to implement a network upgrade and a hard fork is the Neo Blockchain.

The Neo Network is an open-source, community-driven blockchain platform that enables developers to digitize and automate the management of assets through smart contracts. In addition, it also provides robust native infrastructures such as decentralized storage, oracles, and domain name service.

According to a TestNet and MainNet Upgrade Notice published by the Network on 2 June, an upgrade known as the Neo-CLI v3.3.0 T5 was scheduled for implementation on the Neo Chain at an N3 block height of 1,730,000. At the time of writing, the total blocks on the Network stood at 1,702,402.

Data from CoinMarketCap revealed the Network’s native coin, NEO, has struggled since it recorded an all-time high of $196.85 four years ago. Now pegged at $9.03 per piece, it is unclear whether a network upgrade is enough to get investors’ attention.

Let’s take a look at the performance so far this year.

Neo-thing to write home about

Trading at $9.02, the NEO coin has seen a 64% drop this year. At the beginning of the year, the price was pegged at $25.7. Exchanging hands at $9.02, during press time- the coin has declined by 95% from its all-time high of $196.85.

Now, ranked number 62 on CoinMarketCap’s list of crypto assets, NEO registered a market capitalization of $636.36 million at the time of writing. Starting the year at a market capitalization of $1.83 billion, this has also declined by 64% in about six months.

At the time of writing, the Relative Strength Index (RSI) stood at 35 in a downward curve. With the general market outlook and observed lack of interest in the NEO coin, the care of the coin might be left in the hands of the coin for a bit longer. 

Source: TradingView

On-chain analysis

This year’s performance on the social front has been average. The social dominance of the coin registered a high of 0.40% on 9 May. However, it went on to drop by 82% by the time of writing.

At press time, NEO’s social dominance was spotted at 0.067%. The social volume also saw a high of 378 on 9 May, the highest it has clinched this year. Interestingly, at press time, the social volume was 60, registering an 84% decline since the high in May. 

Source: Santiment

On a developmental front, the developmental activity on the network has been on a steady uptrend since the beginning of the year. It was spotted at 36 at the time of writing. 

Source: Santiment