NEAR, the native token of the Near Protocol has experienced a significant 50% surge in value over the past month, with its price reaching $5.21 following a steady uptrend. After hitting a low of $3.41 on September 6, NEAR rallied by 57% to reach an eight-week high of $5.36 by September 24. Several factors have contributed to this remarkable growth, including the implementation of blockchain sharding, increased total value locked (TVL), and a strengthening market structure.
Blockchain Sharding Boosts Scalability and Efficiency
A major driver of NEAR’s price surge has been the implementation of blockchain sharding on the Near Protocol. Sharding, introduced through the NEAR 2.0 update on August 12, enhances scalability without compromising security or decentralization. This technology positions Near Protocol as a faster, more efficient alternative to Ethereum, particularly in handling decentralized applications (DApps) with lower transaction fees.
NEAR/USD daily chart. Source: TradingView
As the second blockchain to implement sharding in production after Elrond, Near Protocol is well-placed for long-term growth, with increased demand for DApps contributing to its rising adoption.
Rising Total Value Locked (TVL) Reflects Network Growth
NEAR’s price performance is further supported by growing user activity on its platform. Between August 25 and September 24, the number of daily transactions on Near Protocol increased by 42%, while new addresses surged by 30.8%, according to data from NearBlocks.io. This uptick in activity has led to a 34% increase in the platform’s TVL, rising from $183.7 million on September 7 to $246.5 million by September 24, as reported by DefiLlama.
Source: Justin Bons
A growing TVL indicates heightened interest in the NEAR ecosystem, with more users depositing and interacting with NEAR-based protocols.
Strengthening Market Structure and Derivatives Interest
NEAR’s recent gains have been amplified by its strengthening market structure. On September 23, the token broke above a key descending trendline, surpassing major moving averages, including the 50-day EMA at $4.40, signaling bullish momentum. With the relative strength index (RSI) reaching 70, buyers are in control, pushing NEAR towards a potential high of $6.45.
Daily number of transactions on Near Protocol. Source: NearBlocks.io
Additionally, the open interest in NEAR futures rose from $114.9 million on September 7 to $279.2 million by September 24, reflecting increased investor confidence and new inflows into the market.
