Gas (GAS) Price Prediction

By CMC AI
05 December 2025 01:32PM (UTC+0)

TLDR

GAS faces a tug-of-war between N3 adoption and market headwinds.

  1. N3 MainNet Traction – Ecosystem growth could revive utility demand

  2. Regulatory Tailwinds – Bank gas fee holdings may spur institutional flows

  3. Gas Abstraction Trends – Wallet innovations risk reducing retail usage

Deep Dive

1. N3 MainNet Adoption (Mixed Impact)

Overview:
The Neo N3 MainNet launched with 80% lower fees and enhanced scalability, but dApp activity remains muted. Flamingo Finance – Neo's top DeFi app – saw 59,517 weekly transactions (-72% WoW) as of December 2025. The network needs developer migration from Legacy MainNet (deprecated in August 2025) to drive GAS consumption.

What this means:
Bullish if new projects leverage N3's smart contract upgrades to attract users. Bearish if migration stalls – GAS’s 30-day price correlation with NEO remains strong at 0.89, and NEO itself has dropped 47% since July 2025 (Neo dApps).

2. U.S. Banking Regulations (Bullish Impact)

Overview:
The OCC’s November 2025 guidance allows U.S. banks to hold crypto assets specifically for gas fees under the GENIUS Act. While initially targeting stablecoins, this legitimizes gas tokens as operational assets – 14 banks have already filed crypto custody plans.

What this means:
Institutional demand could materialize in 2026 as banks build gas reserves. GAS’s fixed supply (87.5M max) and Neo’s regulatory-friendly positioning (China-linked roots) make it a candidate for early adoption.

3. Gas Fee Abstraction (Bearish Impact)

Overview:
Wallets like Trust Wallet and D’CENT now sponsor gas fees using stablecoins or platform tokens, bypassing native assets. Over $789M in Ethereum gas fees were abstracted in 2025 (ETHGas) – a model spreading to other chains.

What this means:
Reduces retail need to hold GAS for transactions. However, Neo’s 80% fee cut to $0.0002 per tx (vs Ethereum’s $1.50) makes sponsorship less critical here – could preserve some organic demand.

Conclusion

GAS’s fate hinges on whether N3’s tech upgrades translate to real-world usage before abstraction tools erode its utility. While regulatory shifts offer a potential lifeline, the token remains hostage to Neo’s broader ecosystem health.

Key question: Will December’s N3 developer grants attract high-impact dApps to offset declining Flamingo Finance volumes?

CMC AI can make mistakes. Not financial advice.