Deep Dive
1. Protocol-Level MEV Protection (Bullish Impact)
Overview: Neo activated its Anti-MEV solution on the Neo X mainnet in September 2025, using ZK-based encryption and dBFT consensus to block front-running and sandwich attacks. This addresses a critical pain point for DeFi users (U.Today).
What this means: By reducing predatory trading risks, Neo could attract more developers and liquidity to its ecosystem. Historical precedents like Ethereum’s EIP-1559 upgrade show that tackling MEV can enhance network credibility, though price impact may lag until adoption materializes.
2. Exchange Support Erosion (Bearish Impact)
Overview: Binance halted Neo Legacy deposits/withdrawals in August 2025, triggering a 7.6% price drop. Toobit delisted NEO/USDT, citing safety concerns (CoinJournal).
What this means: Reduced exchange access throttles retail participation and liquidity. While Neo N3 remains supported, the Legacy shutdown complicates migration for casual holders, risking sell-offs from stranded assets.
3. Macro Sentiment & Regulatory Risks (Mixed Impact)
Overview: Crypto-wide fear (CMC Fear & Greed Index: 31/100) and Bitcoin’s rising dominance (59.9%) dampen altcoin demand. U.S.-China trade talks and scrutiny of Chinese tech firms like ByteDance could indirectly pressure Neo’s ecosystem (CNBC).
What this means: Neo’s price remains tied to broader market cycles. A resolution to trade tensions or Bitcoin ETF inflows might lift all boats, but prolonged risk aversion could delay recovery.
Conclusion
Neo’s price hinges on balancing technical innovation (Anti-MEV) against exchange attrition and macro headwinds. Watch for metrics like Neo X’s TVL growth and changes in BTC dominance. Can Neo’s governance pivot offset the liquidity crunch from Legacy’s sunset?