10 October 2024
As of Q3 2024, CryptoRank stated that 3 million addresses were active every day on NEAR Protocol, making it a major player in the blockchain world. This huge number is higher than both Tron (2 million daily active addresses) and Solana (2.4 million daily active addresses) during the same time period.
The growth of NEAR is in line with a larger trend in the AI cryptocurrency market. This shows that blockchain and AI are becoming more and more intertwined. This point of contact is driving more and more technological progress and user engagement across these channels.
Surge In The AI-Cryptocurrency Sector
One of the most important factors influencing user engagement on NEAR is the rapid growth in AI-related decentralized applications or dApps. As DappRadar reported, AI dApps increased by 70% compared with the previous quarter in Q3.
The survey indicated that AI dApps garnered 4.3 million daily unique active wallets, illustrating the growing interest in this sector of the cryptocurrency industry. NEAR Protocol has swiftly leveraged this trend by establishing collaborations with major corporations such as Nvidia and Alibaba to augment its AI capabilities.
With this further integration with AI, in addition to NEAR’s strong growing ecosystem, the network finds itself at the helm of innovation in this emerging blockchain landscape. Although the ecosystem is still experiencing positive growth, market sentiment remains cautious as the price of the protocol decreased by 2.36% to $4.87, along with a more than 30% decrease in trading volume.
NEAR Protocol: Price Fluctuations Amid Market Ambiguity
The current price difficulties of NEAR can be ascribed to overarching market conditions rather than the protocol’s intrinsic value. Despite the optimistic outlook suggested by daily active addresses and collaborations, recent data indicates a 0.4% reduction in NEAR’s circulating supply, now totaling 1.11 billion tokens. The protocol’s market capitalization now stands at $5.42 billion, ranking it 23rd overall in the market.
Price Forecast Indicates Rebound Potential
The medium-term prognosis for NEAR is predominantly favorable. Technical analysis forecasts an upward trend in the forthcoming seven days, with the token presently trading 220% beneath its projected value for the subsequent month. During a three-month interval, the price is anticipated to rise by 240%, indicative of favorable market sentiment and heightened adoption.
Prolonged projections are similarly positive, with a six-month growth anticipated at 178% and a one-year projection indicating a 165% increase. Although short-term price fluctuations may indicate general market instability, the long-term prospects for NEAR are clear. Investors must keep tabs of forthcoming ecosystem advancements and AI trends to assess the protocol’s price trajectory.
Featured image from Pexels, chart from Avark