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- Near Protocol has experienced a significant increase in daily transactions, indicating robust network activity.
- The network’s expansion and elevated Open Interest signal a positive long-term perspective.
Near Protocol [NEAR] was priced at $4.47 at the time of this report, showing a 12% price increase.
This surge was fueled by optimistic backing from the wider market, as many cryptocurrencies rose following the Federal Reserve’s interest rate cut announcement.
NEAR’s trading volumes increased by over 90% according to CoinMarketCap.
This dramatic rise in volume indicates that recent gains were driven by buying activity, raising questions about the sustainability of the rally.
However, on-chain indicators suggest a favorable long-term outlook for NEAR.
Surge in daily transaction volume
Statistics from NearBlocks reveal a notable rise in NEAR’s daily transactions, currently nearing a two-week peak of 7.33M.
Daily transactions on the protocol have seen a consistent uptrend, climbing from 6.7M a week ago. This suggests heightened network engagement, which has likely boosted the demand for NEAR.
Additionally, the number of new daily addresses on the blockchain has significantly increased. At the beginning of the month, there were 687,000 addresses.
As of now, this figure has surged, with 900,000 new addresses joining the network daily since September 5th.
Source: NearBlocks
Data from DappRadar indicates that the elevated transaction volume is a result of not only trading but also increased activity from decentralized applications (DApps).
Transactions associated with DApps on the network have risen by 14%, exceeding $182M. However, there has been a 54% drop in monthly DApp volumes, which could be linked to fluctuations in NEAR’s price.
Open Interest hits an eight-week high
NEAR is garnering attention from derivative traders, with Open Interest (OI) reaching $184M at the time of reporting, marking the highest level since July 25th.
NEAR’s OI has been steadily climbing since the beginning of August, as reflected on Coinglass. This trend suggests that traders are initiating new positions in anticipation of future price increases.
Source: Coinglass
Moreover, NEAR’s Funding Rates are currently positive at 0.0112%, the highest since June, indicating heightened demand for long positions.
According to Coinglass, traders on Binance have been predominantly taking long positions on NEAR since August, reflecting a bullish sentiment towards the altcoin.
Source: Coinglass
One possible reason for the bullish trend could be the rise of Big Data and AI-related cryptocurrencies.
Read Near Protocol’s [NEAR] Price Prediction 2024–2025
In the past month, the total market value of these cryptocurrencies increased from $22B to $32B as of this report according to CoinMarketCap.
Currently, NEAR stands as the largest AI cryptocurrency, holding over 15% of this market capitalization.
