ByThe prices of AI-themed tokens, particularly NEAR Protocol (NEAR), are experiencing significant upswings, defying the broader market trends. This analysis delves into the factors driving this notable performance and anticipates future movements in NEAR’s value. NEAR Protocol is not new to setting its own course, often buoyed by advancements in the artificial intelligence sector that ripple into the crypto world.
Boost for NEAR
Currently, NEAR appears to be benefiting from historical patterns. On June 19, Panthera Capital, a crypto hedge fund, announced a substantial $1 billion fundraising effort. Notably, 15% to 20% of this new capital is earmarked for AI-related blockchain investments. NEAR Protocol’s strategic use of AI and blockchain to enhance decentralized applications makes it a prime candidate for such investments, driving positive market reactions.
At a trading price of $5.40 NEAR/USDT on Gate.io, NEAR’s recent uptick is also linked to Nvidia’s recent achievements. On June 18, Nvidia, a leader in AI computing, surpassed Microsoft to become the world’s most valuable company, with a market capitalization of $3.33 trillion.
Increased Development Activity
Santiment’s on-chain data indicates a rise in development activity on the NEAR Protocol. Development activity is crucial as it reflects the ongoing efforts to optimize the blockchain. An increase in this metric suggests growing public contributions to NEAR’s GitHub repositories, signaling a positive outlook for the token’s price.
Another key metric supporting the bullish outlook is NEAR’s trading volume. Volume reflects market interest, where an increase denotes heightened buying and selling activity, potentially bolstering the price trend. Currently, NEAR’s volume has surged to $308.09 million, and if this momentum continues, NEAR could reach $6 in the near term.
NEAR Price Prediction
Further NEAR price prediction shows significant increases in the Money Flow Index (MFI) and On Balance Volume (OBV). The MFI tracks the flow of money into and out of a cryptocurrency, with levels above the 50.00 midpoint indicating rising buying pressure. Similarly, the OBV measures the net volume flow, with increases suggesting dominant buying pressure.
Technical analysis using Fibonacci Retracement levels identifies potential price targets. This tool plots horizontal lines at key support and resistance points. For NEAR, if buying pressure mounts, the price could reach $5.70, aligned with the 61.8% Fibonacci level. In an extremely bullish scenario, NEAR could advance to $6.15, corresponding to the 78.6% level.
With these indicators pointing towards continued upward movement, NEAR Protocol (NEAR) remains poised for potential growth, eyeing the $7 mark amid sustained AI-driven enthusiasm.
NEAR Explained
NEAR Protocol is a highly scalable, developer-friendly blockchain platform designed to build decentralized applications (dApps) with ease. Launched by the NEAR Foundation, NEAR Protocol aims to address some of the fundamental limitations of earlier blockchain systems, such as low throughput, poor interoperability, and complex user interfaces. It achieves this through a combination of innovative technologies and a strong focus on developer and user experience.
At its core, NEAR utilizes a unique consensus mechanism known as Nightshade, a variation of sharding. Sharding is a process that divides the network into smaller, manageable pieces called shards, allowing the protocol to process many transactions in parallel, significantly boosting its throughput and scalability. This makes NEAR capable of handling thousands of transactions per second, which is crucial for mainstream adoption and usage in real-world applications.
NEAR also places a strong emphasis on simplicity and accessibility. It offers a range of tools and libraries that simplify the development of dApps, making it possible for developers to create complex applications with minimal effort. The platform supports common programming languages like Rust and AssemblyScript, which lowers the barrier to entry for developers who are not well-versed in blockchain-specific languages. Additionally, NEAR provides a smooth and intuitive user experience with features like human-readable account names and easy wallet recovery, which are designed to make blockchain technology more accessible to non-technical users.
Another notable aspect of NEAR Protocol is its environmental sustainability. Unlike many traditional blockchain networks that rely on energy-intensive proof-of-work (PoW) mechanisms, NEAR uses a proof-of-stake (PoS) consensus model, which is significantly more energy-efficient. Validators on the NEAR network are selected based on the amount of NEAR tokens they hold and are willing to “stake” as collateral, which incentivizes good behavior and reduces the carbon footprint associated with maintaining the network.
Overall, NEAR Protocol is designed to foster a more inclusive and scalable blockchain ecosystem, enabling the creation of a wide array of decentralized applications. Its approach to scalability, focus on usability, and commitment to sustainability make it a player to count with.
