Deep Dive
1. Neo N3 Upgrade (Bullish Impact)
Overview:
Neo’s April 2025 proposal aims to slash block times from 15s → 3s and reduce GAS generation from 5 → 1 per block. If approved in Q3 2025, this would cut annual GAS supply by ~80%, from ~10.5M to ~2.1M.
What this means:
Scarcity mechanics could lift prices if Neo’s transaction volume grows post-upgrade. However, the 90-day voting delay (pending council approval) and potential dApp compatibility issues add execution risk.
2. Liquidity Risks From Delistings (Bearish Impact)
Overview:
ProBit Global will delist GAS on August 19, 2025, following Neo Legacy Network deprecation. This follows similar moves by smaller exchanges, concentrating 74% of GAS volume on Gate.io and Upbit.
What this means:
Reduced exchange access may amplify price volatility and deter new investors. However, Upbit’s weekly GAS airdrops to NEO holders (latest: July 2025) continue supporting baseline demand.
3. Gas Fee Abstraction Trends (Mixed Impact)
Overview:
Initiatives like Trust Wallet’s FlexGas (June 2025) and D’CENT’s GasPass allow paying fees in stablecoins, reducing reliance on native tokens like GAS.
What this means:
While abstraction improves user experience, it could weaken GAS’s utility premium long-term. Offsetting this requires Neo to demonstrate unique dApp traction versus Ethereum, BNB Chain, and other fee-abstracted networks.
Conclusion
GAS faces a pivotal 6-12 months: supply constraints from Neo’s upgrade may counterbalance liquidity risks and abstraction headwinds. Technicals show neutral momentum (RSI 44-50), with $3.14 Fibonacci level acting as near-term support.
Will reduced GAS issuance outpace adoption challenges? Monitor the Neo Council’s upgrade vote and Q4 2025 network activity metrics.