NEAR Protocol Soars 57% Amid Sharding Success and Increased Network Activity

NEAR Protocol’s token surged 57% following the successful implementation of sharding and increased network activity. The boost in total value locked (TVL) and bullish futures data signal ongoing market confidence in NEAR’s scalability and future growth.

NEAR Protocol has recently caught the attention of the cryptocurrency community with its native token experiencing a significant price surge. Since hitting a low of $3.41 on September 6, NEAR’s value has skyrocketed by 57%, reaching an eight-week high of $5.36 on September 24. Currently trading at $5.26, the token’s upward momentum appears to be continuing.

Sharding Implementation Boosts NEAR’s Scalability

A key factor behind NEAR Protocol’s impressive price performance is its recent successful implementation of sharding as part of the NEAR 2.0 update. Completed on August 12, this update enables the NEAR network to process more transactions by dividing them across multiple node groups, or shards. NEAR now stands alongside Elrond as one of the few blockchains to achieve sharding in production.

Sharding addresses the blockchain trilemma by enhancing scalability without compromising security or decentralization. As a result, NEAR has positioned itself as a faster, more scalable, and cost-effective option for decentralized applications (dApps), directly competing with platforms like Ethereum.

Rising Network Activity and TVL Growth

On-chain data indicates substantial growth in NEAR’s network activity, further supporting the bullish sentiment. Between August 25 and September 24, daily transactions on NEAR increased by 42%, while new address creation surged by 30.8%.

This rise in activity has led to a 34% jump in the total value locked (TVL) on NEAR-based decentralized applications, growing from $183.7 million on September 7 to $246.5 million by September 24. This highlights the growing demand for NEAR’s blockchain within the decentralized finance (DeFi) space.

Bullish Futures Market Sentiment

The bullish momentum in NEAR Protocol’s token is also evident in the rising open interest (OI) in NEAR futures contracts. According to derivatives data from Coinglass, OI increased from $114.9 million on September 7 to $279.2 million by September 24, signaling a surge in interest from traders and the influx of new capital into the market. This growing interest suggests a positive outlook for NEAR’s future price performance.

NEAR/USD Technical Analysis

Technically, NEAR’s price action reflects strong bullish momentum. The token has broken above its descending trendline and is now trading above key moving averages, including the 50-day, 100-day, and 200-day exponential moving averages (EMAs).

With the relative strength index (RSI) at 70, NEAR is currently in overbought territory, indicating that buyers are in firm control of the market. Analysts are monitoring resistance levels at $6 and the June high of $6.45. A successful breakout above these levels could lead to further price growth. However, if NEAR closes below the 50-day EMA at $4.40, it could invalidate the bullish thesis and prompt a pullback toward the $3.50 level.

Conclusion

NEAR Protocol’s latest developments, including the implementation of sharding and increased network activity, position the project for continued success. While NEAR is still down 74% from its all-time high of $20.42, the token’s upward trend, combined with strong market interest and trader activity, suggests that it may soon recover further, with potential to surpass the $10 mark in the near future.

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