Nexo price prediction: What’s next for the lending platform?
Nexo’s array of crypto lending and earning products have a global reach. Should you invest?
- From the Nexo whitepaper
- Nexo by numbers
- Nexonomics: What you should know
- Recent price action
- NEXO price targets
Co-founded in 2018 by a former Bulgarian member of parliament, Antoni Trenchev, Nexo is a lending platform for digital assets with a wide global user base. Nexo account holders can collateralise cryptocurrency to borrow fiat or stablecoins, while earning interest on their collateralised assets. Additionally, Nexo’s own credit card gives users various benefits and discounts.
The NEXO token, launched alongside the Nexo financial ecosystem in April 2018, is an ERC-20 standard cryptocurrency that offers holders additional benefits including higher earning yields, lower borrowing rates and interest on their holdings.
What are the key facts and figures of the Nexo ecosystem and NEXO tokenomics? What is Nexo (NEXO) and what is the NEXO price prediction? Read on to find out.
From the Nexo whitepaper
According to the associated whitepaper: “Nexo delivers the world’s first instant crypto-backed loans, thus resolving a crucial inefficiency for the crypto world. Up to this very moment, no alternatives existed for digital asset owners to enjoy their crypto wealth except selling them.”
The document goes on to say: “The innovative model of Nexo brings to the crypto community the best of both worlds – retaining 100% ownership of their digital assets while having immediate access to cash.”
Nexo by numbers
By its own count, Nexo boasts more than four million global users across over 200 jurisdictions, with $80bn worth of assets under management. In total, over 40 major cryptocurrencies are supported, including Bitcoin, Ether, Axie, Fantom, Cardano, Dogecoin and NEXO’s own NEXO token.
Users can earn interest on their collateralised assets of up to 16%, although the figure is typically lower. In a recent reading, BTC was generating 7% APR and Tether was earning 12%.
NEXO’s Trustpilot scores are high, although alongside the genuine reviews, some bot reviews are evident.
According to independent auditor Armanino, Nexo’s more than 184,402 BTC customer liabilities are fully backed as of 3 August 2022.
The Nexo Card, ordered through the Nexo digital wallet (available on Google Play and App Store), is used like a regular credit card for making in-store purchases. Up to 2% cashback on payments can be earned, paid out in either BTC or NEXO.
But what is Nexo putting in place for financial safety measures? Nexo Financial is registered as a limited liability company. The full list of global licences and registrations, including US state compliance, can be seen here. Assets are insured for up to $775m by BitGo, Ledger and bakkt.
Currency.com is not affiliated with Nexo Financial. This article is intended as an informational source and is not a promotion of Nexo Financial’s services. Please conduct your own due diligence on the organisation before using its services.
Nexonomics: What you should know
There are 560 million NEXO in circulation, out of a maximum supply of one billion. Currently trading at $0.7702, its market capitalisation is around $431m. A recent 24-hour trading volume of $49m amounted to 11.4% of market cap. NEXO ranks number 89 on the crypto charts by market cap.
From November 2021, Nexo initiated a $100m buyback programme in monthly increments. At the time of writing, Buyback 2.0, is now complete. Nexo has repurchased just over $100 million in its native token over the course of six months.
Repurchased NEXO tokens are not burned; instead, “after the 12-month vesting period, tokens bought via the buyback scheme will be put towards investments in strategic targets via token mergers with applicable vesting schemes to ensure token holder interests, and daily interest payouts in NEXO Tokens.”
Assessing the top-five holders through Etherscan, the merchant deposit address holds the largest supply of NEXO at about 27%, while two burn addresses account for about 31%. In total 76,773 unique addresses hold NEXO, with the top 10 collectively holding about 89% of the supply.
Huobi is the primary exchange for trading NEXO, offering UDST, BTC and ETH pairs. From December 2021, the regulated exchange FTX listed the NEXO/USD pair. Bitfinex also lists NEXO, while the Uniswap decentralised exchange currently holds a substantial proportion of NEXO market liquidity.
Recent price action
NEXO’s chart activity yields few surprises. After a $3.70 high on 16 November 2021, the token entered a downtrend as the cryptocurrency market started to falter. Particularly strong daily dips were observed on 21 January 2022, 30 April 2022, and 11 June with NEXO falling by 28%, 28% and 50% respectively.
In April 2022, Nexo teamed up with Mastercard and DiPocket to launch the first crypto card in Europe, boding well for the token’s long-term survival.
Seemingly bucking the market-wide downtrend, NEXO is currently enjoying some upward momentum, despite a dominating bear market which has seen the cryptocurrency economy shed value over the past six months, dropping from $3.08trn to $1.08bn at the time of writing.
As of 3 August 2022, the price of NEXO is around $0.7702, having rallied by more than 10% in a recent 24-hour window.
NEXO price targets
At WalletInvestor, the Nexo price prediction for 2022 currently closes out at $0.714. However, the Nexo price prediction for 2025 is a year-end value of $0.0196. Sentiment is currently bearish.
DigitalCoinPrice’s Nexo price prediction is more upbeat, giving a 2022 year-end price target of $1.11 and a 2025 price target of an average of $1.62. Of the 26 metrics used to make the estimation, six suggest a sell strategy, none suggest a buy strategy and 11 suggest a neutral strategy, or to hold.
We can see a longer-term projection at PricePrediction.net, which gives an average Nexo price prediction for 2030 of $31.06, representing 40-times gains against today’s trading value. DigitalcoinPrice’s 2030 target is a less bullish $3.55.
Finally, the Nexo price prediction targets at Gov.Capital are $3.07 over 12 months and $18.96 over five years.
Always keep in mind that online price forecasters are an automated service. While they might be useful as a guide, their price targets should not be taken as genuine financial advice.
Always make sure to do your own research before placing an investment. This could include reading the white paper, assessing the fundamentals outlined on the website, reading news releases and checking social media channels.
There are currently 560 million Nexo coins in circulation, representing 56% of the maximum supply of one billion.
Nexo is a popular lending platform and the Nexo token has some solid fundamentals.
As with any investment, however, thorough due diligence is essential if you are considering a purchase. Make sure to read all available documentation and consult financial experts.
As the price predictions above reveal, digital forecasters generally suggest that Nexo will rise in value.
Do keep in mind, though, that these forecasters use algorithms that do not take into account fundamentals, nor any unforeseen market volatility. They should only be used as a guide.
You must come to your own conclusion about that, following thorough independent research and fundamental analysis.
This NEXO coin price prediction article presents you with neutral information and should not be taken as genuine financial advice.