NEO’s N3 mainnet launch may be a success, but is that a compelling reason to invest?

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Proponents of NEO believe that it has contributed something new to the market, simplifying the complex world of cryptocurrency dominated by Bitcoin and Ethereum. While volatility is more or less the standard for cryptocurrency pricing, network functionality is what ultimately decides its value.

And, most recently, the NEO blockchain released a new coding structure that makes developers’ duties much easier.

Does NEO beat Ethereum?

In its own way.

NEO has been steadily increasing in value since its inception in 2014. During the May surge, the cryptocurrency increased by 483 percent and reached an all-time high of $123. Following this peak, NEO has remained in a steady stage of development, with the blockchain launching the N3 mainnet in August.

The N3 mainnet performed as predicted, allowing the network to process 10,000 TPS. However, the most significant advancement it brought was for coders.


With the release of N3, developers were able to construct smart contracts on the network in any coding language of their choosing. This was only possible due to intense development work, which was plainly evident thanks to on-chain data. Developers do not need to learn any new languages because N3 supports the majority of the world’s most popular programming languages.

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Consider Ethereum and Cardano for a moment. It is possible to claim that Solidity and Plutus limit this freedom of choice to some extent. NEO is finally gaining much-needed attention by catering to developers.


NEO’s multitude of available coding languages | Source: TinManNEO

How does it look like for investors?

Since the debut of the N3 mainnet, the altcoin has increased by 154%. Furthermore, despite the fact that it had a 27.8 percent drop on September 7th, on-chain data remains favourable.

Consider the ROI of an altcoin, for example — Almost as much as, if not more than, Bitcoin and Ethereum.

NEO’s ROI compared to Bitcoin and Ethereum | Source: Coinmetrics

NEO’s Market Value to Realized Ratio is also strong, hovering above 1.5. Following a significant drop in May, network participation has also increased. This increase in active addresses is a result of N3’s introduction.

Because of its low volatility, the market may see a large number of investors flocking to the altcoin. However, one must take in mind that it has a low Sharpe ratio as well.

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Given how bullish investors’ sentiments are, it would be prudent to enter the NEO market with caution.


NEO’s investors’ sentiment | Source: Santiment

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