DeFi boom and Bitcoin rally position NEXO to close 2020 with a plus of 480%

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In the past three months, the NEXO token, the native asset of Nexo’s blockchain-based lending platform, has grown by more than 480%. Since Bitcoin (BTC) traded for $ 10,000, NEXO price has been keeping a close eye on BTC, but performance is a bit lacking when compared to the 1000% rallies seen by a handful of DeFi tokens.

NEXO / USDT daily chart. Source: TradingView

The project was originally unveiled in late 2017 by European FinTech group Credissimo, claiming it would offer “the world’s first crypto-backed instant loans”.

Founded by Cresissimo employees Antoni Trenchev, Georgi Shulev and Kosta Kantchev, the platform was originally designed to allow crypto investors to borrow against the value of their crypto assets rather than selling their assets and creating a taxable event.

Originally, Nexo planned to start a public presale and a main sale of tokens. However, these plans were canceled due to the extraordinarily high demand from private sales to investors.

NEXO followed a course similar to most of the projects launched in late 2017 and early 2018 when the Bitcoin hype cycle unfolded. The value of the token rose from around $ 0.10 when it first went public to over $ 0.40 in May 2018, before the reality of the crypto winter set kicked in and the price of Nexo by September 2018 fell to $ 0.045.

Innovation seems to be driving Nexo’s price movement

When Bitcoin was preparing to break out of the $ 10,000 to $ 12,000 range in late October, Nexo launched its “Nexonomics” initiative to drive the rollout of its token and platform. The idea was to gradually roll out upgrades and new features on the platform by the end of 2020 to advance tokenomics and promote the usefulness of the token.

The team also introduced the Earn in NEXO program, which enables users to earn an additional 2% APY if they choose to pay any interest earned in NEXO.

Since the introduction of Nexonomics, the NEXO price has increased by more than 480%. Market capitalization rose from $ 68 million to its current value of $ 383 million over a three-month period.

During this time, Nexo also recorded a significant increase in trading volume from a daily average trading volume of around USD 5 million to a current volume of more than USD 30 million.