Cryptoupdates

06/12 18:17

NEAR Sees 46M Users in Q2, Yet Its Price Struggles

NEAR Sees 46M Users in Q2, Yet Its Price Struggles at $2.80 – Why?

Despite a significant surge in user activity, NEAR Protocol's native token (NEAR) has been trading around $2.80, reflecting a decline from its 2024 highs.  This discrepancy between user growth and price performance raises questions about the factors influencing NEAR's market valuation. 

User Growth and Adoption

In Q2 2024, NEAR Protocol reported 1.4 million daily active users, positioning it as a leader among smart contract platforms.  The platform's adoption is driven by decentralized applications (dApps) like KaiKai and Hot Protocol, which have gained significant traction.  Additionally, NEAR's focus on user experience, including innovations like chain abstraction and wallet upgrades, has contributed to its growing user base  .

Monetization Challenges

Despite the increase in user engagement, NEAR faces challenges in monetizing its network.  In Q2 2024, the protocol generated $2.8 million in revenue, a 43.5% increase from the previous quarter.  However, this figure remains modest compared to other leading platforms, and the average transaction fee decreased by 14.6% quarter-over-quarter  .

Market Sentiment and Competition

The broader cryptocurrency market's volatility has also impacted NEAR's price.  Factors such as profit-taking after a 150% surge in NEAR's DeFi sector and the emergence of AI-focused platforms like DeepSeek have shifted investor attention, affecting NEAR's market performance  .

Conclusion

While NEAR Protocol demonstrates strong user adoption and technological advancements, its price struggles at $2.80 due to challenges in monetization, market volatility, and increased competition.  Addressing these issues will be crucial for NEAR to translate its user growth into sustained price appreciation.

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