Nexo (NEXO) coin has maintained its bullish rally and is currently trading well above the $1.10 mark. The Nexo (NEXO) coin reached a high of $1.2133 this week, roughly 120% higher than its low in August. However, the reason for its rally could be linked to Nexo’s announcement that it will add another $50 million to its repurchase program. As a result, the company will periodically buy back NEXO tokens.
The goal is to reduce the number of outstanding tokens in circulation while increasing investor trust.
Meanwhile, the cryptocurrency market’s ongoing recovery, which tends to boost investor confidence, contributed to the coin’s gains. Throughout the day, the cryptocurrency markets recovered and showed a bullish trend.
Nexo Pumps 14%
According to CoinMarketCap data, the total market capitalization of all cryptocurrencies was $984.29 billion, a 1.32 percent increase. The world’s two largest cryptocurrencies, Bitcoin and Ethereum, and others saw slight increases. The current live Nexo price is $1.07, with a 24-hour trading volume of $23,742,066.
Nexo Daily Price Chart – Source: Tradingview
The NEXO/USD pair has risen by 2.46% in the last 24 hours and over 14% in the seven days. Nexo is now ranked #67 in the market, with a live market cap of $596,689,634. It has a total supply of 1,000,000,000 NEXO coins and a circulating supply of 560,000,011.
Nexo Has Allocated $50 Million for a Token Buyback Program
According to a press release, Nexo, a cryptocurrency lending company, has added $50 million to its token buyback program. As a result, Nexo’s price has risen to its highest level since June. The coin’s price rose to a high of $1.2133, roughly 120% higher than its August low. As a result, its market cap increased to nearly $620 million.
Today we are announcing our third $50М Buyback.
Thе allocation is a result of our solid liquidity position and readiness to spur on our own products and community as the $NEXO Token comes to play an increasingly important role within our ecosystem.https://t.co/y7gTNMZC9q
— Nexo (@Nexo) August 30, 2022
Nexo is a leading fintech firm that provides a comprehensive range of solutions to retail and institutional customers. Users can borrow collateralized cash through the company’s platform. Furthermore, the company provides an investing function that allows users to profit simply by depositing cryptocurrencies such as AVAX and SOL.
Nexo’s tools allow users to buy and store cryptocurrencies such as BTC and ETH. It also has a program that allows customers to use their Visa-affiliated cards to make purchases.
Nexo’s price has risen in response to the company’s announcement that it will contribute an additional $50 million to its share repurchase program. As a result, the corporation will buy back NEXO tokens regularly to reduce the number of outstanding tokens in circulation and increase investor trust.
According to a press release, the Swiss lender will spend $50 million over the next six months purchasing its local coin. This follows a previous repurchase in which it collected $100 million from November to May. So far, Nexo has avoided the issues plaguing competitors, primarily due to this year’s sharp market decline.
Celsius Network, another lender, declared bankruptcy in June following a withdrawal freeze. As the value of crypto assets plummeted, former industry leaders Voyager Digital and Three Arrows Capital faced similar outcomes.
Stability in the Crypto Market
The cryptocurrency market has gained some traction and is still showing signs of life. As a result, the total market capitalization of cryptocurrencies was $984.29 billion on Friday, September 2, a 1.32 percent increase.
Popular cryptocurrencies such as Bitcoin, Ethereum, and others have also seen minor gains in the last 24 hours. Bitcoin and Ethereum, the world’s two largest cryptocurrency assets, have recovered from the losses caused by the Fed chairman’s hawkish stance. This was regarded as one of the primary drivers of the rise in the value of crypto assets.
As a result, the cryptocurrency market’s recovery was thought to be one of the major factors contributing to the NEXO coin’s consistent value gain.
US Dollar Losing Some Ground
The broad-based bearish bias in the US dollar provided some additional support to the coin. The losses appeared after data showed that hiring in the United States increased faster than expected in August, but wage growth slowed.
Unemployment rose, giving the Federal Reserve some wiggle room when raising interest rates later this month. Despite this, the dollar struggled to maintain its bullish trend, pulling back from a 20-year high reached on Friday.
The US dollar has risen since Federal Reserve Chair Jerome Powell stated at the Jackson Hole conference that interest rates would need to remain high “for some time” to combat persistently high inflation. Following that, it reached 109.99, its highest level since June 2002. However, the dollar has yet to maintain this level.