Neo price climbs 17% after Ethereum compatibility announcement

The Neo blockchain platform is developing a sidechain to support decentralized Ethereum applications and ensure compatibility with its own mainnet, N3.

#Neo Founder @dahongfei, announcing #Neo’s New Chapter: an #MEVFree, #EVM compatible sidechain, to ensure security, privacy, and a smooth experience in the increasingly complex #DeFi landscape.

The sidechain is under development. The testnet is planned to be launched at the end… pic.twitter.com/EO9Ck52qGt

— Neo Smart Economy (@Neo_Blockchain) October 27, 2023

According to project founder Da Hongfei, the testnet will be launched by the end of 2023.

The solution will integrate MEV-attack protections and the Ethereum Virtual Machine (EVM).

The sidechain is designed to deliver security, privacy, and an advanced interaction experience in an increasingly complex DeFi environment.

Against the backdrop of Da Hongfei’s description of it as the ‘new chapter’ for the project, the NEO token rose 17.2% in 24 hours. The asset trades around $9. This is about 95% below its all-time high of $198.4 set in January 2018.

Neo’s market capitalization is around $637.5 million. The token ranks 68th in the cryptocurrency rankings.

In October 2020, the launch on the Neo blockchain of the Flamingo Finance protocol gave Da Hongfei claim possible competition for the project with Ethereum in DeFi.

As of writing, the value of assets locked in the network totals $31.8 million (Neo overall—$32.4 million). The ecosystem’s total TVL of the second-largest cryptocurrency exceeds $22.2 billion (DeFi Llama).

In the Bitcoin community, there are also proposals to integrate the blockchain of digital gold with the EVM. Such solutions have backing among experts.