The increasing user activity on the NEAR Protocol blockchain is generating a lot of optimistic attitude for its future. Recent months have seen increasing transaction volumes and active addresses, which have driven the protocol closer to the crypto community.
Market watchers refer to the protocol’s emphasis on scalability, minimal fees, and ambitious entrance into artificial intelligence (AI) integration as numerous elements fueling this increase.
Data points to notable increase in user involvement on the blockchain. Based on analyst estimates, in June it had the most active addresses—almost 17 million—than any other large chain.
In June, compared to the popular chains was👇
#1 in the number of Active Addresses (16.9m)
#1 in low-cost fees (< $0.005)
#1 in Success Rate (99.9%)
#2 in Average STPS (94)
#2 in Number of txns (239m)
55% retention of May Users with 12.3m new Users
More 👇
— Masi (@Masi_DN)
This increase in user count matched other encouraging indicators, like cheap transaction fees and the remarkable success rate of the network—almost 100%. Especially NEAR rated second in terms of average transaction speed and total transactions handled (239 million).
Moreover, the NEAR environment has kept a good fraction of its user base intact. For consumers who joined in May, reports show a 55% retention rate; 12.3 million fresh users registered in June alone.
Integrating AI For The Future
Apart from its emphasis on scalability and user experience, NEAR is strategically investing on new technologies. The founding of the NEAR AI R&D Lab marks the dedication of the protocol to include artificial intelligence features into its blockchain.
This emphasis on artificial intelligence is considered as a possible differentiator that draws developers and consumers to be enthusiastic about the future of blockchain applications driven by AI.
AI has many possible uses inside the NEAR ecology. Artificial intelligence speeds up transaction processing, simplifies smart contract execution, or even customises user experiences inside DEFi apps developed on NEAR.
Although these technologies are still in their early years, NEAR is positioned strategically as a possible leader in this developing field due to their strategic relevance on artificial intelligence.
Increase In User Engagement
The increase in user engagement and the creative approach of the protocol have helped NEAR token price to be better. Following a recent drop, NEAR’s price has exhibited indications of recovery; it has increased by 5.27% over the previous 24 hours.
NEAR market cap currently at $5 billion. Chart: TradingView
Technical signals implying a possible reversal of the bearish trend include the Moving Average Convergence Divergence (MACD) and the Money Flow Index (MFI).
Analysts warn against too optimistic pricing forecasts, nevertheless. The market for cryptocurrencies is still erratic; right now, the “Fear & Greed Index” shows a wary attitude. Although a shows NEAR could hit $14.20 by August 7, 2024, it’s important to keep in mind all forecasts are by nature speculative.
Source: CoinCodex
For NEAR, the next weeks will be absolutely vital. Should the user base keep growing and the protocol effectively include artificial intelligence capabilities, a continuous price hike could be just around the corner. Any investment action should, however, consider the larger market attitude and possible temporary declines.
Featured image from Asia Crypto Today, chart from TradingView
