The Continued Rise of NEAR
In the past two months, the broader crypto market has experienced a positive trend leading up to the festive season. Although the hype has cooled down, there are still some tokens that are defying the trend and continuing to rise. NEAR is one such token.
According to Coingecko, NEAR has seen an 8% increase in daily prices, with a significant jump of 23% in the weekly timeframe. This surge has pushed NEAR to a new high of $2.81. However, it’s important to note that the token reached its all-time high of $20.42 back in January 2022.
In addition to its price surge, NEAR’s market capitalization has also grown significantly, currently standing at around $2.8 billion. This bullishness can be attributed to several on-chain integrations.
NEAR: Moving Towards Modularity
NEAR has been garnering attention for its efforts to improve its systems. In a recent Medium article, the protocol discussed its transition from being a monolithic chain to a more modular blockchain.
Although NEAR considers itself a monolithic chain, its implementation of sharding ensures that individual validators are not overwhelmed. However, users and developers have realized that publishing on Ethereum can be expensive.
To address this issue, NEAR DA (Data Availability) aims to provide rollup operators with access to NEAR’s storage capacity. Currently, only a few rollups, including Caldera, Fluent, and Movement Labs, are utilizing NEAR DA. Once this capability is available to commercial users and other rollup operators, NEAR will gain exposure to a wider range of investors.
Furthermore, data from Artemis shows a significant increase in network activity on the NEAR blockchain since the beginning of the month, with a 975% rise in the daily count of unique wallet addresses sending on-chain transactions.
The Impact on NEAR’s Price
Currently, NEAR is approaching the $2.90 price ceiling, but breaking through its January 2022 high of $20.42 will be challenging due to strong bearish resistance. However, the combination of strong on-chain development and favorable market conditions is likely to bring more bullishness in the short to medium-term.
Investors and traders should be prepared for a possible correction towards $2.25 once the initial hype settles down.
Hot Take: NEAR’s Continued Momentum
NEAR has demonstrated its resilience and potential for growth in the crypto market. With its ongoing improvements, increased network activity, and promising developments like NEAR DA, the token is well-positioned to continue its upward trajectory. While there may be challenges ahead, NEAR’s strong fundamentals make it an attractive investment option for those looking to capitalize on the crypto market’s positive momentum.
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