NEAR Protocol Surges 57%: Sharding, AI Partnerships, and Growing TVL Drive Rally

NEAR Protocol sees a 57% price surge since September, fueled by blockchain sharding, increased TVL, AI partnerships, and U.S. political support for digital assets and AI technology.

NEAR Protocol’s native cryptocurrency, NEAR, has experienced a remarkable 57% price increase since its September 6 low of $3.41. Currently trading at $5.22 on Gate.io, NEAR briefly reached an eight-week high of $5.36 before stabilizing at a strong support level of $5.20.

Several factors have contributed to this rally, including advancements in blockchain technology, AI-driven market momentum, and growing network activity.

Sharding Implementation Enhances NEAR’s Scalability

A key factor in NEAR’s recent surge is the implementation of blockchain sharding. This groundbreaking update, completed as part of NEAR 2.0 on August 12, positions NEAR as the second blockchain after Elrond to adopt sharding technology.

Sharding enables the NEAR network to split workloads across multiple node groups, increasing scalability and enhancing security without sacrificing decentralization. This improvement has positioned NEAR as a viable alternative to Ethereum for decentralized applications (DApps), offering faster and more cost-effective operations.

As DApp demand continues to grow, NEAR is poised to benefit significantly from this innovation.

AI Partnerships Fuel Market Momentum

The partnership between Nvidia and Alibaba Cloud has spurred bullish sentiment in the AI-driven crypto sector. Following the announcement, NEAR saw a 9.3% price jump within 24 hours, outperforming other AI-themed tokens.

The broader AI crypto market, now valued at $28.9 billion, also gained momentum, with notable rallies from tokens like Bittensor (TAO) and Fetch.ai (FET). NEAR’s strong performance reflects the increasing influence of AI collaborations on the cryptocurrency market.

Political Support for Digital Assets and AI

Adding to NEAR’s bullish momentum, U.S. presidential candidate Kamala Harris pledged to promote AI and digital asset adoption as part of her economic platform. This marked her first public endorsement of the sector, further fueling optimism for digital assets like NEAR.

Growing Network Activity and TVL Boost Confidence

On-chain data reveals significant growth in NEAR Protocol’s network activity over the past month. Daily transactions increased by 42% between August 25 and September 24, while new wallet addresses rose by 30.8%.

This surge in activity has led to a substantial rise in NEAR’s total value locked (TVL), indicating heightened interest in the ecosystem. The growing adoption of NEAR-based projects has been a key driver of this trend.

Rising Open Interest in NEAR Futures

Data from Coinglass shows a sharp increase in NEAR futures open interest, rising from $114.9 million on September 6 to $279.2 million on September 24. This marks the largest jump since June 7, signaling increased trader interest and a surge in capital entering the NEAR market.

NEAR Price Analysis and Prediction

NEAR’s price action demonstrates a strong market position. The cryptocurrency has broken above key resistance levels, including the 200-day EMA at $4.87 and the 50-day EMA at $4.40. With an RSI reading of 70, NEAR is firmly in bullish territory.

Analysts predict that NEAR’s price could continue its upward trajectory, with forecasts suggesting a potential rise to $7.74 by October 1, according to Changelly.

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