The native token of the Layer 1 (L1) blockchain Near Protocol, NEAR, recently reached a one-month high, hitting $5.93 after a period of decline that saw the token drop to $4 on July 5. This surge represents a remarkable 20% gain over the past week, propelling NEAR to the 19th position among the top 100 cryptocurrencies. The positive momentum surrounding NEAR has caught the attention of venture capital firm Pantera Capital, with Managing Partner Paul Veradittakit expressing optimism about NEAR’s protocol and growth potential.
Addressing Scalability Challenges
Veradittakit highlighted the value proposition of NEAR within the blockchain ecosystem, emphasizing the limitations faced by Bitcoin and Ethereum in terms of transaction scalability. While Bitcoin is known for being a store of value and Ethereum supports smart contracts and dApps, both struggle with scalability issues. NEAR Protocol distinguishes itself with its Thresholded Proof of Stake (TPoS) system and Nightshade sharding, which enhance scalability and decentralization, positioning NEAR as a solution to address these challenges effectively.
NEAR has achieved significant milestones in a short period, such as reaching $335 million in Total Value Locked (TVL), marking a 547% increase in just six months. This impressive growth reflects NEAR’s traction and strategic effectiveness in the market. Key metrics further support NEAR’s market presence, including a 42% quarter-on-quarter increase in daily active addresses, a surge in transactions from 35 million to over 220 million, and a substantial rise in monthly active users from 2.9 million to 15 million.
NEAR is also establishing itself as a leader in the emerging crypto artificial intelligence (AI) ecosystem, a sector that has gained significant momentum in recent years. The integration of AI through an open and decentralized framework by the NEAR team prioritizes user control over data and assets, aligning with the growing demand for transparency and security in AI applications. This commitment has garnered recognition, with NEAR being selected as part of Grayscale’s AI Fund alongside other prominent assets in the AI sector.
