NEAR, the native token of the Layer 1 (L1) blockchain Near Protocol, has surged to a one-month excessive after breaking out of a earlier downtrend that noticed the token hit a low of $4 on July 5. Currently buying and selling at $5.93, NEAR has recorded a considerable 20% acquire over the previous week, propelling it to the nineteenth place among the many top 100 cryptocurrencies.
This constructive momentum has drawn the eye of enterprise capital agency Pantera Capital, whose Managing Partner, Paul Veradittakit, has shared a number of causes for the agency’s bullish stance on NEAR’s protocol and its development potential.
Scalability Solution Amidst Bitcoin And Ethereum Challenges
Veradittakit took to social media on Thursday to highlight NEAR’s worth proposition inside the blockchain ecosystem.
Veradittakit famous that whereas Bitcoin (BTC) and Ethereum (ETH) have been on the forefront of the crypto know-how “revolution,” with Bitcoin establishing itself as a retailer of worth and Ethereum supporting sensible contracts and decentralized applications (dApps), each face “challenges” associated to transaction scalability.
According to Pantera’s MP, that is the place NEAR Protocol performs a key function in addressing these scalability points whereas prioritizing developer engagement and consumer expertise by providing a scalable and user-centric blockchain answer.
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NEAR distinguishes itself with its Thresholded Proof of Stake (TPoS) system and Nightshade sharding, which will increase scalability and decentralization. These developments have paved the way in which for NEAR to realize vital milestones, resembling reaching $335 million in Total Value Locked (TVL), a rise of 547% in simply six months.
According to Veradittakit, such development demonstrates NEAR’s traction and strategic effectiveness available in the market. Furthermore, NEAR’s market presence is fortified by key metrics, together with a 42% quarter-on-quarter enhance in each day energetic addresses, a surge in transactions from 35 million to over 220 million, and a considerable rise in month-to-month energetic customers from 2.9 million to fifteen million.
NEAR And Crypto AI Integration
Notably, NEAR can be positioning itself as a frontrunner within the rising crypto (*5*) (AI) ecosystem, which has gained vital traction particularly over the previous yr with surges of companies like Nvidia.
The NEAR staff has emphasised the mixing of AI by way of an open and decentralized framework, which locations consumer management over information and belongings on the forefront.
This has garnered recognition, as NEAR has been announced as a part of Grayscale’s AI Fund. The fund’s element belongings and weightings embrace Bittensor at 2.92%, Filecoin at 30.59%, Livepeer at 8.64%, NEAR at 32.99%, and Render at 24.86%.
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Lastly, Veradittakit emphasised that NEAR’s success will be attributed to the management of its co-founders, Illia Polosukhin and Alexander Skidanov, as Polosukhin’s experience in AI and Skidanov’s engineering understanding has been “instrumental” in growing NEAR’s infrastructure.
Despite reaching its month-to-month excessive of $5.93 and a considerable 300% acquire year-to-date, the token might want to break above the $8.28 degree within the brief time period to interrupt out of its downtrend construction.
However, with these developments and the adoption of AI-related tokens, NEAR could also be poised for additional beneficial properties all year long, helped alongside by the broader market’s restoration.
Featured picture from DALL-E, chart from TradingView.com
