3 reasons why NEAR has gained 50% in a month
After rising 2.3% in the last 24 hours to trade at $5.21, the native NEAR protocol continues to rise.
After falling to a low of $3.41 on September 6, NEAR rallied 57% to create an eight-week high of $5.36 on September 24, according to data from Cointelegraph Markets Pro and TradingView.
NEAR/USD Daily Chart. Source: TradingView
Among the factors contributing to NEAR's growing strength are the implementation of blockchain sharding on the NEAR protocol, increasing open demand for futures markets, Total Value Locked (TVL) and strengthening market structure.
Sharding is implemented next to a protocol.
NearProtocol, a community-managed cloud computing platform focused on functionality and lightning-fast transaction speeds, has implemented sharing across the network.
According to the project, sharding solves the blockchain trilemma by providing scalability and security without compromising decentralization.
Source: Justin Bones
The platform achieved this following the 2.0 update released on August 12, making it the second chain closest to achieving a split in production after Elrond (EGLD).
As the demand for decentralized applications (DApps) continues to grow, implementing sharding has positioned the protocol for steady, long-term growth.
Compared to Ethereum, the protocol offers a near-faster and more scalable option with lower transaction fees, and sharding plays a critical role in this efficiency.
NEAR Price Performance may be the latest partnership between Nvidia and Alibaba Cloud, which aims to improve the autonomous driving industry in China.
AI-themed crypto tokens, including NEAR, respond positively to major Nvidia announcements, and this time was no different.
Another boost for AI-related tokens came from Democratic presidential candidate Kamala Harris, who hinted at creating an “economy of opportunity” for AI and digital assets in the United States. This is the first time Harris has publicly expressed her stance on the crypto industry.
Onchain data supports NEAR's price increase
Increased network activity and network growth were ahead of NEAR's price performance last month. This is the result of the increased activity achieved by the growing adoption of projects on the near protocol, which increased the daily transaction count on the platform by 42% between August 25 and September 24, according to data from NearBlocks.io. At the same time, the number of new addresses increased by 30.8%, which confirms the increase.
Daily number of transactions near protocol. Source: NearBlocks.io
The growth of network activity has led to increased user engagement with the network, increasing the total value locked (TVL) on the platform. According to data from Defillama, TVL on the latest protocol increased by 34% from $183.7 million on September 7 to $246.5 million on September 24.
Total value is locked on the latest protocol. Source: Defillama
The addition of TVL reflects the growing activity and interest in the latest protocol ecosystem. It indicates that many users are saving or using properties in recent based protocols.
In addition, derivatives data tracker Koingles showed that NEAR's OI increased from $114.9 million on September 7 to $279.2 million on September 24, the highest level since June 7. It's happening.
Open interest close. Source: Coinglass
Related: OpenAI's press account hack was 5th security breach in 20 months
The recent consolidation of the market structure points further up
On September 23, the near-term breakout was seen breaking above the downtrend line. It also closed above all major moving averages, including the 50-day EMA at $4.40, the 100-day EMA at $4.75, and the 200-day EMA. At $4.87, it has served as a barrier since mid-June.
The relative strength indicator price at 70 indicates that buyers are controlling the nearby market.
The bulls are now focused on pushing the price to $6 and possibly the top of the 19 range at $6.45.
NEAR/USD Daily Chart. Source: TradingView
Conversely, a daily candle that closes below the 50-day EMA at $4.40 creates a lower low on the daily chart, invalidating the bullish thesis. The bears could pull NEAR's bearish 32% further to retest the September 6 low of $3.50.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
