NEO Price Soars Following Ethereum Compatibility Announcement

The team behind Neo is currently working on developing a sidechain to support decentralized applications from Ethereum as well as ensure compatibility with their N3 mainnet.

The founder of Neo, Da Hongfei, stated that the test network for the sidechain will be launched by the end of 2023.

This solution will include protection against MEV attacks and utilize the Ethereum Virtual Machine (EVM).

The main aim of the sidechain is to provide enhanced security, privacy, and interoperability for the growing DeFi ecosystem.

This was announced as “a new chapter” for the project, causing a significant 17.2% increase in the price of NEO overnight, which is currently trading at around $9.

This marks a decline of 95% from its all-time high of $198.4 in January 2018. NEO’s market capitalization is approximately $637.5 million, making it the 68th ranked cryptocurrency.

In October 2020, the launch of Flamingo Finance protocol on the Neo blockchain led Hongfei to suggest that the project could rival Ethereum in the DeFi sector.