Why NEO Could Be the Most UNDERRATED L1 This Cycle: Exploring the Future of Blockchain, AI, and DeFi

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In the fast-paced and often unpredictable world of Bitcoin, Crypto, BTC, Blockchain, CryptoNews, and Investing, many layer one blockchains either blaze brightly only to fade away or quietly stall without much fanfare. But there’s one blockchain that has consistently defied this trend—not by chasing hype, but by delivering tangible tools, genuine innovation, and quietly positioning itself for the future. That blockchain is NEO, a pioneering platform that helped shape smart contracts back in 2014 and continues to push forward with cutting-edge technology, fair governance, and a vision that embraces AI and Web3.

This article unpacks why NEO deserves serious attention in this crypto cycle, diving deep into its past, present, and future innovations. Whether you’re a developer, investor, or crypto enthusiast, understanding NEO’s ecosystem could open new doors to opportunity in the evolving blockchain landscape.

NEO blockchain logo with futuristic background

The Resilient Journey of NEO: From Ethereum of China to a Future-Forward Ecosystem

NEO’s journey is a remarkable story of longevity and evolution in a space where survival alone is noteworthy. If you were around in 2017, you might recall NEO being dubbed the Ethereum of China. During that bullish cycle, it was one of the top-performing layer one blockchains, standing out as one of the few platforms offering a serious smart contract infrastructure when decentralized applications (dApps) were just beginning to reveal their potential.

What makes NEO’s story stand out even more is how it has navigated the crypto rollercoaster over the years. While many competitors either disappeared, stagnated, or pivoted drastically, NEO kept building. Through multiple bear markets, changes in technology stacks, regulatory pressures, and shifting narratives, the NEO team remained steadfast. They avoided the temptation to launch forks or create new tokens every cycle—instead, they focused on refining their vision, advancing their technology, and holding firm to their core values of accessibility, fairness, and genuine usability.

This kind of consistency is rare and deserves respect. NEO is not just a legacy chain resting on its past achievements. It’s an OG in the space that introduced notable innovations like the dual-token model with NEO and Gas, pioneered delegated Byzantine Fault Tolerance (dBFT) consensus, and even returned ICO funds to investors—a move not commonly seen in the crypto world.

Today, NEO is rolling out new infrastructure such as NEO x and Spoon OS, positioning itself as one of the most complete and forward-thinking layer one ecosystems available.

NEO’s Core Innovations Over the Years

  • Dual-token model: NEO for governance and Gas for utility
  • Delegated Byzantine Fault Tolerance consensus, offering fast and secure transaction finality
  • Returning ICO funds to investors, demonstrating commitment to fairness
  • Rolling out next-gen infrastructure like NEO x (an EVM-compatible sidechain) and Spoon OS (a Web3-native OS)
NEO dual-token model infographic showing NEO and Gas

Developer-Friendly Platform: Building Web3 in Familiar Languages

One of the biggest hurdles for blockchain adoption has been the steep learning curve for developers who must master specialized programming languages like Solidity or Rust. NEO addresses this challenge head-on with its NEO N3 platform, which allows developers to build smart contracts using popular, real-world programming languages such as Python, TypeScript, JavaScript, and more.

This accessibility drastically reduces developer friction, allowing more creators to participate in building decentralized applications without the barrier of learning a new language. Coupled with native features like oracles, decentralized storage through NEO FS, the NEO Name Service, and a built-in bridge to NEO x, developers get robust tools out of the box.

Fewer lines of code, ready-to-use software development kits (SDKs), and a supportive ecosystem make NEO a compelling choice for Web3 builders seeking efficiency and power.

Developer coding on NEO N3 platform with multiple programming languages

Spoon OS: The Future of Web3 and AI Agents

Looking beyond traditional blockchain use cases, NEO is venturing into futuristic territory with Spoon OS, a Web3-native operating system designed specifically for AI agents. The vision here is bold: a sentient economy where autonomous AI agents can build, coordinate, and transact on-chain without human intervention.

Projects like Inflective and Oortech are already pioneering this vision, and NEO is building the infrastructure to support it. Imagine AI agents negotiating, executing contracts, and managing assets in a decentralized, trustless environment—this could redefine how economies operate in the near future.

Spoon OS AI agents interacting on blockchain network

Introducing NEO x: EVM Compatibility with a Twist

If you’re an Ethereum developer or familiar with Ethereum’s ecosystem, NEO x offers an exciting proposition. NEO x is an EVM-compatible sidechain, meaning that developers can deploy Solidity smart contracts and use familiar Ethereum tooling like MetaMask or Hardhat without needing to learn new languages or platforms.

But NEO x doesn’t stop at compatibility—it tackles one of Ethereum’s most persistent issues: Miner Extractable Value (MEV). MEV refers to the profit miners or validators can extract by reordering, front-running, or censoring transactions in a block, often at the expense of regular users.

NEO x employs a unique approach by baking anti-MEV protections directly into its protocol. Using enveloped transactions combined with NEO’s dBFT consensus, the chain blocks front-running and confirms transactions fairly and final within a single block. This method avoids the patchwork fixes other chains rely on and ensures a fast, fair, and final transaction process.

Diagram showing NEO x EVM compatibility and anti-MEV mechanism

Why MEV Matters to Traders and Developers

MEV can be a huge pain point for users, especially in DeFi trading. If you’ve ever been front-run or suffered from slippage caused by sandwich bots, you know how frustrating it is to lose value to bad actors. NEO x’s approach means that traders can operate in an environment where fairness is baked into the blockchain itself, not just layered on top.

For developers, this fairness reduces the complexity of building DeFi applications that users can trust, potentially driving more adoption and innovation.

NEO’s Passive Yield and Tokenomics: A Dual-Token Model That Works

NEO operates on a dual-token system where:

  • NEO acts as the governance token, allowing holders to vote on proposals and influence the network’s future.
  • Gas serves as the utility token, used to pay for transaction fees and smart contract execution.

What’s unique and attractive here is that simply holding NEO allows you to earn Gas as passive yield—no staking, no lockups, and no liquidity provider (LP) tokens required. The annual percentage rate (APR) ranges between 15% to 20%, making it a genuinely passive income stream for holders.

NEO’s Flux model further compounds these rewards by automatically converting part of your Gas rewards into LP tokens on Flamingo Finance, a flagship DEX on the NEO network. This hands-off approach means users can benefit from compounding without the typical DeFi headaches.

NEO tokenomics illustration showing dual-token model and passive yield

Flamingo Finance and CarrotSwap: DeFi on NEO

DeFi on NEO is unique. Flamingo Finance operates an on-chain order book and runs natively on NEO N3, benefiting from dBFT finality, the Gas reward system, and Flux auto-compounding. Meanwhile, on NEO x, early applications are leveraging MEV protection for fairer trades.

A newcomer to watch is CarrotSwap, a decentralized exchange built on NEO x. Despite NEO x still ramping up, CarrotSwap is already attracting users providing liquidity and executing trades without the usual frustrations of sandwich bots or validator manipulation.

This early traction shows the potential for NEO x to redefine what trading on an EVM chain can feel like—fast, secure, and fair.

CarrotSwap DEX interface on NEO x showing fair trading environment

Understanding EVM and Why It’s a Game-Changer for NEO

For those newer to the space or unfamiliar with the jargon, EVM stands for Ethereum Virtual Machine. It’s the engine that executes smart contracts on Ethereum and any compatible blockchain. Chains like Polygon, Arbitrum, BNB Chain (Binance), Avalanche, and now NEO x all support EVM.

Why does this matter? Because EVM compatibility means developers skilled in Solidity and Ethereum tools can easily port their dApps or build new ones without learning a new language or toolchain. This lowers barriers to entry and accelerates innovation.

NEO x’s innovation is that it not only supports EVM but improves on it by baking anti-MEV protections directly into the protocol, something most other EVM chains still struggle to solve effectively.

How MEV Works and NEO’s Solution

MEV stands for Miner Extractable Value or more broadly Maximal Extractable Value. It describes how miners or validators can reorder, front-run, or censor transactions in the mempool before they are confirmed, profiting at the expense of regular users.

Imagine trying to buy concert tickets online, only to have bots jump ahead in line every time you try. That’s what MEV feels like in DeFi.

NEO x fixes this by preventing MEV abuse before it starts, baking protection directly into the blockchain rather than relying on external bots or layer two solutions. This approach promotes fairness and transparency for all participants.

Community and Ecosystem Growth: Grants, DAO, and Partnerships

NEO supports builders and community projects through initiatives like GrantShares, a decentralized autonomous organization (DAO), EcoFund, and EcoGrowth. If you have a project idea, you can seek funding on-chain through real governance mechanisms, empowering community-driven development.

NEO’s ecosystem is also gaining recognition in the broader blockchain world. Recently, NEO was featured in Binance’s eight-year anniversary celebration—a significant milestone for one of the largest exchanges globally. This inclusion signals NEO’s relevance, integration, and support across major platforms, not just within isolated communities.

NEO logo featured in Binance's 8-year anniversary celebration

NEO Price Action: Historical Moves and Potential Opportunities

NEO’s price history offers valuable insights for investors and traders. The asset has experienced two major impulses in recent years:

  1. 2017-2018 Bull Run: NEO surged dramatically, peaking near $199 in early 2018 after continuing its run even as the broader market topped out.
  2. 2021 Bull Market: Another significant rally saw NEO reach strong highs around April and May 2021 before retracing with the overall market.

Currently, NEO is trading near its range lows, presenting a potentially attractive entry point with relatively low downside risk. Technical analysis suggests that a bounce could be on the horizon, with key resistance levels to watch:

  • Quarterly resistance near $13, more than double the current price around $6
  • Anchored VWAP resistance around $19-20, a volume-weighted average price from the 2021 high
  • Higher targets around $60, representing a yearly pivot level akin to a 200-day moving average

While price predictions are never guaranteed, the setup suggests a solid risk-reward opportunity for mid-to-long-term investors willing to monitor key levels and scale out profits accordingly.

Why NEO Remains a Strong Contender in Crypto and Blockchain Investing

NEO has quietly built an impressive track record over the last decade with zero downtime, zero drama, and no dilution. Its focus on real usability, fairness, and accessibility has created a strong foundation for sustainable growth.

The developer-friendly N3 platform, combined with the innovative EVM-compatible and MEV-resistant NEO x sidechain, plus the futuristic vision of Spoon OS for AI agents, makes NEO a wide-open opportunity for builders and users alike.

For developers, NEO offers a welcoming environment with robust tools, real funding opportunities, and a forward-looking roadmap. For users, it provides genuine passive income streams and a secure, fair DeFi experience.

If you want to explore the NEO ecosystem further, visit neo.org to dive into the technology and community yourself.

NEO ecosystem overview with developer tools, DeFi apps, and AI integration

In a space crowded with fleeting projects, NEO stands out as a legacy blockchain that continues to evolve, innovate, and deliver real value. Whether you’re interested in Bitcoin, Crypto, BTC, Blockchain, CryptoNews, or Investing, keeping an eye on NEO could pay off as the blockchain landscape shifts toward AI and Web3 integration.

Cheers to the future of blockchain with NEO leading the way.

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