NEO and GAS, two popular digital assets, experienced significant daily gains of 13% and 30% respectively, driven by trading activity with Korean won (KRW) pairs on the Upbit platform. This surge follows a recent decline in prices for both assets, with NEO dropping 44% and GAS decreasing by 32% between March 24 and April 2. The unexpected price hike has caught the attention of market observers, with both assets ranking among the top movers in the digital asset space.
The recent increase in NEO and GAS prices coincides with the launch of the Neo Bond program, which was designed to stabilize the market and restore confidence among investors. The Neo Bond program allows NEO holders to lock their tokens for 30 days in exchange for a 50% annualized yield and a $5 price guarantee at maturity. This initiative is structured as a fixed-term vault and aims to incentivize token holders to participate in market stabilization efforts through voluntary lockups of their tokens.
Market data from Upbit reveals that there has been a surge in KRW trading activity for both NEO and GAS, leading to a significant uptick in prices for these assets. The NEO/KRW pair accounted for over 60% of the token’s global trading volume on April 9, while GAS/KRW approached 70% of the total volume, showing a high concentration of trading activity in the Korean market. The strong correlation between GAS and NEO prices suggests that the surge in GAS volume may be driven by derivative hedging or retail interest fueled by the Neo Bond program’s promotional efforts.
The Pearson Correlation Coefficient, which measures the relationship between two variables, shows a positive correlation between GAS and NEO prices over both one-year and one-month timeframes. This correlation indicates that the price movements of GAS are closely tied to those of NEO, despite GAS being used solely for transaction fees on the Neo blockchain. The strong correlation between these two assets further highlights the impact of trading activity on one asset on the price movements of another.
In conclusion, the recent price gains for NEO and GAS have been fueled by trading activity with KRW pairs on the Upbit platform, with both assets experiencing significant daily gains. The launch of the Neo Bond program has also played a role in boosting market confidence and stability. As trading activity remains concentrated in the Korean market, investors should continue to monitor the correlation between GAS and NEO prices to understand the broader impact of market trends on these assets.
