According to its website, Nexo is the world’s largest lending company in the decentralized finance sector. Nexo offers cryptocurrency-backed loans in which users can place their bitcoins (BTC), ethers (ETH), or other eligible crypto tokens as collateral for receiving cash or stablecoins.
NEXO is the native token of the platform, and it was developed using a typical blockchain incentive model. Let’s learn more about the Nexo platform to build a plausible NEXO coin price prediction based on its performance.
NEXO offering: Crypto-backed loans and Nexo’s EARN products
The Nexo wallet allows users to buy, sell, borrow, and earn interest off their idle cryptos. To earn interest, users must transfer cryptocurrencies to their Nexo wallets or purchase cryptocurrencies from Nexo’s exchange. The yield can either be received in the same currency as the deposit currency or in NEXO tokens.
Nexo’s interest-earning program is similar to a bank offering its customers interest on their deposits. The main difference is the rate of interest and the assets received as interest, which can be any cryptocurrency, including NEXO.
Nexo states the standard interest rate for crypto assets is 4% and for stablecoins it is 8%. The user must stake NEXO tokens worth 10% of their total asset value in their Nexo account to get a higher interest rate of 12%. In addition, users can receive up to 2% extra interest if they accept interest earned in NEXO tokens. Interest yields also depend on the fixed term of investment, be it one month or three month, where the user gets higher interest in a single payout at the end of the term if opted for the longer period.
With most of our clients – at 72% – claiming they are planning to HODL their digital assets for three or more years in a recent survey, there is increasing evidence that the crypto space is evolving towards a more mature, long-term-focused industry.
Nexo
By our very nature, we are an enabler of this strategy because we allow you to keep your cryptocurrencies and earn high-yield passive income. In doing so, you keep the upside potential of your assets, and you generate additional income.
Nexo
What is the NEXO coin?
The NEXO coin is the native “interest-bearing” token of the Nexo platform. NEXO token holders can get interest discounts on their credit lines, bonus yields on their interest yields on opting to receive payouts in NEXO tokens and free crypto withdrawals. NEXO token holders will also receive dividends from Nexo’s profits.
70% from the company’s net profit will be reinvested back into the company to fund more instant Crypto Credit Lines™, and a fixed 30% from the net profit is paid out as dividend to the eligible NEXO token holders in the given dividend period.
Nexo
The company, which launched in 2018, said dividend profit-sharing will be split into two parts: base dividend and a loyalty dividend. Nexo added that it is “committed to introducing more frequent dividend payments” compared to corporate dividends typically distributed on an annual basis.
According to CoinMarketCap, NEXO token is among the top 100 largest cryptocurrencies by market capitalisation, ranking 81 and valued at about $1.23bn, as of 12 January. NEXO has a fixed supply of 1 billion tokens.
Price Performance and Technical Analysis | Is NEXO Crypto a Good Investment in 2022?
Over the past year, the NEXO token has surged about 300%, as of 12 January. The coin is trading just above the $2 mark, having hit an all-time high of $4.07 in early May 2021.
Since that peak, the token has been on a downward trajectory, falling nearly 50%, as of 12 January.
The entire cryptoverse is currently going through a downtrend that has seen bitcoin (BTC), and ether (ETH) lose about 14.4% and 21.5%, respectively, in the last month according to CoinMarketCap.
According to technical analysis from CoinCodex, the sentiment was neutral for NEXO at the time of writing (12 January). There were seven indicators showing bearish signals and 19 bullish.
The 3- to 10-day simple and exponential moving averages were bullish, along with the 200-day SMA and EMA. The 50- and 100-week SMAs and EMAs were also giving ‘buy’ signals, while the 50-and 100- day SMAs and EMAs were bearish.
The volume-weighted moving average was showing a ‘sell’ signal, and the Hull moving average indicated ‘buy’. The average directional index, relative strength index (RSI) and stochastic RSI were neutral.
Crypto Market Determinants | Factors Driving NEXO Price
In mid-November 2021, Nexo launched its second buyback program that saw the company repurchase $100m worth of NEXO. The company said the repurchased tokens will be placed into vesting accounts for 12 months after which time they will be used for investments and daily interest payouts in NEXO tokens.
In December 2021, Nexo became the first crypto lender to offer NFT-backed loans. With its NFT Lending Desk service users can borrow up to 20% of the value of their Bored Ape Yacht Club (BAYC) and CryptoPunks NFTs without selling them. According to their website, Nexo is currently offering these services only on the two most recognisable NFT collections and more are expected to follow soon.
Nexo and US-based financial services company Fidelity signed a partnership in December 2021 to develop products using Nexo’s crypto-backed credit lines and Fidelity Digital Assets’ custodial solutions to institutional clients.
We saw the once-in-a-lifetime opportunity to introduce services that simply do not exist to this day and this is precisely what we plan on doing through our collaboration.
Kalin Metodiev, co-founder of Nexo
Nexo Wallet Cyber Insurance by BitGo, Providing Security Against Crypto Crimes In DeFi
In terms of security and insurance, Nexo says its total insurance portfolio amounts to $375m, which is significantly lower than Nexo’s assets under management of over $4bn, as of February 2021. The company has said it plans to increase its insurance to over $1bn in 2021.
The company said its cold storage wallets are provided by BitGo, and has a $100m insurance protection policy covering third-party hacks or insider thefts by BitGo employees or the loss of private keys.
According to blockchain research platform Chainalysis, cryptocurrency-based crime hit a new all-time high in 2021, with illicit addresses receiving $14bn over the course of the year.
We’ve also seen significant growth in the usage of DeFi protocols for laundering illicit funds, a practice we saw scattered examples of in 2020 and that became more prevalent in 2021
Chainalysis Report
DeFi is one of the most exciting areas of the wider cryptocurrency ecosystem, presenting huge opportunities to entrepreneurs and cryptocurrency users alike. But DeFi is unlikely to realise its full potential if the same decentralisation that makes it so dynamic also allows for widespread scamming and theft.
“One way to combat this is better communication — both the private and public sectors have an important role to play in helping investors learn how to avoid dubious projects. In the longer term, the industry may also need to take more drastic steps to prevent tokens associated with potentially fraudulent or unsafe projects from being listed on major exchanges.”
Future of Nexo Coin | Price Prediction 2022, 2025 and 2030
According to a short-term NEXO crypto price prediction from CoinCodex as of 12 January, the NEXO token price could plunge by 2.11% and hit $ 2.27 by 17 January.
Longer term NEXO forecasts from algorithm-based forecasting services were bullish, as of 12 January.
The NEXO crypto price prediction from Wallet Investor estimated that the token could rebound to $3.840 by the end of December 2022. Wallet Investor expected the price to surge to $5.621 by the end of 2023 and $9.201 by the end of 2025. By the start of 2027, the coin could trade at $11.021, the data showed.
The NEXO price prediction from Digital Coin also projected that NEXO could gain value over the next few years. Based on historical data analysis, DigitalCoin expected the NEXO price to average $3.24 in 2022, $3.87 in 2023 and $5.34 in 2025. By 2029, the cryptocurrency could trade at $9.77.
Price Prediction’s long-term NEXO forecast expected the coin to average $3.25 in 2022 and hit $10.28 in 2025. Based on deep artificial intelligence-assisted technical analysis, it projected that NEXO could soar to an average of $69.20 by 2030.
When looking for NEXO price predictions, bear in mind that analysts and algorithm-based forecasts can be wrong. Their NEXO projections are based on fundamental and technical studies of a cryptocurrency’s past performance. Past performance is no guarantee of future results.
It’s essential to do your research and always remember your decision to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio, and how comfortable you feel about losing money. You should never invest money that you cannot afford to lose.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
