- The NEAR protocol has recorded 450 million transactions and 12.3 million unique addresses.
- Market sentiment has changed as user engagement has increased.
The NEAR protocol has attracted the attention of the broader cryptocurrency community due to its rapid increase in trading volume and new addresses.
According to analysts, NEAR addresses have been growing over the past two months. Masi reported this development on X (formerly Twitter), saying:
”In June, @NEARProtocol compared to popular chains: #1 in active addresses (16.9m). #1 in low fees (<$0.005). #1 in success rate (99.9%). #2 in average STPS (94). #2 in number of transactions (239m). 55% user retention in May with 12.3m new users.”
Accordingly, Flipside’s official X page also reported on the rapid growth that NEAR is experiencing. They announced:
“@NEARProtocol’s new users have outpaced all other top chains in the past year. NEAR has ranked #2 in total new users since the beginning of 2023.”
Source: Flipside
NEAR price has recovered from recent losses as trading volume and address activity increases.
As participation increases, bulls are trying to overcome resistance. This brings the total number of transactions to 450 million and the number of unique users to 227.7 million. In June, NEAR attracted 12.3 million new addresses and in May, it attracted 5.8 million new addresses.
Factors that promote user engagement
Several factors have played a role in the increased adoption and use. First, NEAR AI R&D Lab development aims to promote simple, secure, and scalable technologies.
The promising potential of AI has played a key role in attracting users and establishing NEAR as a key player in the AI and blockchain integration field.
NEAR Protocol also has other innovations such as chain signing and HERE wallet integration. These developments and integrations have helped NEAR improve its user experience and make it accessible to a wider audience.
What effect does this have on the price chart?
At the time of writing, NEAR was trading at $4.74 after a 5.27% surge in 24 hours. Volume was down 51.75% during the same period.
According to AMBCrypto’s analysis, the NEAR downtrend is weakening and a reversal is possible.
Looking at the Money Flow Index, it is at 56 at the time of writing. This MFI suggests that more money is flowing into altcoins than outflows. This is moderate, but it does mean that buying pressure is increasing as crypto money increases.
Source: Tradingview
Likewise, the MACD shows a potential reversal. The MACD histogram is above 0.016 at 0, while the MACD line is above the signal line. This shows that the downtrend is weakening, which is usually followed by a bullish trend reversal.
Source: Coinglass
Finally, our Coinglass analysis shows that NEAR’s net flow has been largely negative over the past 7 days. At the time of writing, the net flow is -$940.42k.
A negative value suggests that investors plan to hold on to the coin for the long term, indicating their confidence in the future potential of the altcoin.
Do you expect NEAR to show an upward trend?
NEAR is down 5.56% on the weekly chart. If the downtrend continues, it may fall to the next support level around $4.15.
However, if the large volume of transactions and increase in active addresses have a positive impact on the price action and the market experience reverses, the price will attempt the previous resistance level of $5.602.