NEO and GAS are experiencing a significant surge in price, with NEO recording a 13% gain and GAS seeing a 30% increase in daily gains. This surge is primarily driven by trading activity with Korean won (KRW) pairs on Upbit. Market data shows that NEO recorded $54.4 million in volume on its KRW pair, while GAS registered $134.6 million, making them top movers in the digital asset platforms.
This price hike comes after a steep decline for both NEO and GAS between March 24 and April 2, with NEO falling by 44% and GAS by 32%. The sudden reversal in the market has caught many observers by surprise.
One possible reason for this surge is the recent launch of the Neo Bond program by the Neo Foundation. The Neo Bond program, which opened for participation on April 5, offers NEO holders the opportunity to lock their tokens for 30 days in exchange for a 50% annualized yield and a $5 price guarantee at maturity. This initiative is designed to support market stability through voluntary token lockups and confidence incentives. The Neo Foundation has pre-funded the bond with 1 million NEO in a multi-signature wallet to ensure liquidity and guarantee payout capability.
Market data from Upbit indicates a high level of KRW trading activity in both NEO and GAS, contributing to their price uptick. On April 9, the NEO/KRW pair accounted for over 60% of the token’s global trading volume, while GAS/KRW approached 70% of the total volume, showing a regional concentration. The surge in GAS volume suggests either derivative hedging or retail interest, potentially fueled by the promotional visibility of the Neo Bond program.
Although GAS is primarily used to pay fees for operations on the Neo blockchain, its price is closely correlated with NEO. The Pearson Correlation Coefficient shows a strong positive correlation between GAS and NEO over different timeframes, indicating their price movements are closely linked.
Overall, the recent surge in NEO and GAS prices highlights the impact of trading activity with KRW pairs on Upbit and the introduction of the Neo Bond program in supporting market stability. Investors will be closely watching how these developments unfold in the coming days.