NEAR Surges 20%: Pantera Capital MP Reveals 5 Reasons For Bullish Outlook
July 18 2024 - 5:30PM
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NEAR, the native token of the Layer 1 (L1) blockchain Near
Protocol, has surged to a one-month high after breaking out of a
previous downtrend that saw the token hit a low of $4 on July
5. Currently trading at $5.93, NEAR has recorded a substantial
20% gain over the past week, propelling it to the 19th position
among the top 100 cryptocurrencies. This positive momentum
has drawn the attention of venture capital firm Pantera Capital,
whose Managing Partner, Paul Veradittakit, has shared several
reasons for the firm’s bullish stance on NEAR’s protocol and its
growth potential. Scalability Solution Amidst Bitcoin And Ethereum
Challenges Veradittakit took to social media on Thursday to
highlight NEAR’s value proposition within the blockchain
ecosystem. Veradittakit noted that while Bitcoin (BTC) and
Ethereum (ETH) have been at the forefront of the crypto technology
“revolution,” with Bitcoin establishing itself as a store of value
and Ethereum supporting smart contracts and decentralized
applications (dApps), both face “challenges” related to transaction
scalability. According to Pantera’s MP, this is where NEAR
Protocol plays a key role in addressing these scalability issues
while prioritizing developer engagement and user experience by
offering a scalable and user-centric blockchain solution. Related
Reading: Crypto Analyst Predicts XRP Price To Hit $1.03 Soon, Warns
Of Initial Dip NEAR distinguishes itself with its Thresholded Proof
of Stake (TPoS) system and Nightshade sharding, which increases
scalability and decentralization. These advancements have paved the
way for NEAR to achieve significant milestones, such as reaching
$335 million in Total Value Locked (TVL), an increase of 547% in
just six months. According to Veradittakit, such growth
demonstrates NEAR’s traction and strategic effectiveness in the
market. Furthermore, NEAR’s market presence is fortified by key
metrics, 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 And Crypto AI Integration Notably,
NEAR is also positioning itself as a leader in the emerging crypto
artificial intelligence (AI) ecosystem, which has gained
significant traction especially over the past year with surges of
firms like Nvidia. The NEAR team has emphasized the
integration of AI through an open and decentralized framework,
which places user control over data and assets at the
forefront. This has garnered recognition, as NEAR has been
announced as part of Grayscale’s AI Fund. The fund’s component
assets and weightings include Bittensor at 2.92%, Filecoin at
30.59%, Livepeer at 8.64%, NEAR at 32.99%, and Render at 24.86%.
Related Reading: THORChain (RUNE) Primed For Big Gains, Analyst
Eyes $20 Milestone Lastly, Veradittakit emphasized that NEAR’s
success can be attributed to the leadership of its co-founders,
Illia Polosukhin and Alexander Skidanov, as Polosukhin’s expertise
in AI and Skidanov’s engineering understanding has been
“instrumental” in developing NEAR’s infrastructure. Despite
reaching its monthly high of $5.93 and a substantial 300% gain
year-to-date, the token will need to break above the $8.28 level in
the short term to break out of its downtrend structure.
However, with these advancements and the adoption of AI-related
tokens, NEAR may be poised for further gains throughout the year,
helped along by the broader market’s recovery. Featured image
from DALL-E, chart from TradingView.com
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