Neo’s lesser known Gas token surged on Tuesday, extending its winning streak to two days amid a broad downturn in the cryptocurrency market.
GAS Price Levels
The value of GAS coin surged more than 30% on Tuesday, hitting a session high of $72.30 a unit. It was last seen trading at $68.76 for a gain of 26% and a market cap of $661 million.
Nearly $80 million worth of GAS tokens changed hands over the last 24 hours, with Binance accounting for half of the daily volumes. Huobi exchange processed roughly one third of the transactions.
In terms of volume by currency, more than 80% of GAS trades were against bitcoin, with an additional 15% of positions held against ether.
NEO coin, which is often referred to as ‘China’s Ethereum’, also rose on Tuesday, albeit at a rate that was much lower than its GAS counterpart. The coin rose by as much as 5% before paring gains all the way down to 1.5%. It was last seen trading at $162.08 for a total market cap of $10.5 billion. That’s enough for sixth spot on the active cryptocurrency list.
In terms of volume, NEO’s turnover averaged $637 million over the past 24 hours.
GAS benefited from the New Year upsurge that sent bitcoin and its altcoin cousins to new highs. It peaked near $92 on Jan. 14 before a series of sharp reversals cut the token’s value in half.
The Sudden Rise of Gas
The Neo ecosystem trades two distinct tokens, NEO and GAS, with the latter powering smart contracts and tokens deployed on top of the blockchain. Both coins are capped at 100 million units apiece. The GAS token is created at a rate of 8 units per block, with the rate of production lowered by one token for every two million blocks generated. By 2039, it is expected that all GAS tokens will be in circulation.
Although the coin’s fundamentals haven’t changed recently, prices are likely benefiting from the hype surrounding the NEO Talk event scheduled to kick off on Wednesday. The event will feature interviews with dozens of NEO DevCon speakers.
In addition to the hype, GAS is also benefiting from speculation that it may soon be part of the ERC20 ecosystem in the same way that ether tokens are currently employed. This would likely be accomplished through the upcoming launch of NEO’s Neon Exchange (NEX), which will support the buying and selling of GAS and serve as a cross-chain enabling ERC20.