TLDR: Near Protocol shows significant real-world adoption and innovation in blockchain scalability, facing challenges like SEC scrutiny but with strong funding and potential in AI and Web3 niches.
This article is a summary of a You Tube video “Near Protocol: NEAR Price Potential? How High Could It Go?!” by Coin Bureau
Key Takeaways:
- Real-World Adoption: Near Protocol boasts significant real-world usage with its top two DApps (Decentralized Applications) having over 30 million monthly active wallets, suggesting it is one of the most adopted cryptos in real-world applications.
- Market Undervaluation: Comparing Near Protocol’s adoption metrics to its market cap implies that it may be undervalued.
- Sharded Proof-of-Stake Blockchain: Utilizes a sharded proof-of-stake mechanism for scalability and efficiency, aiming for theoretically infinite scalability through dynamic resharding.
- Financial Backing: Raised approximately $535 million in funding between 2019 and 2022, indicating strong investor confidence and the project’s high-quality nature.
- Tokenomics and Use Cases: NEAR coin is used for transaction fees (with a portion burned or allocated to smart contracts) and staking, with an aggressive vesting schedule leading to a significant increase in supply since launch.
- Developer and Ecosystem Support: Near Protocol emphasizes developer support through partnerships (e.g., Infura) and has invested heavily in ecosystem incentives and grants.
- Regulatory Challenges: The SEC’s classification of NEAR as a security poses potential risks for its availability on U.S. exchanges.
- Innovative Features: Introduction of blockchain operating systems (BOS) for Web3, partnerships for data and privacy enhancements, and the development of a zero-knowledge smart contract standard.
- Competitive Landscape and Niche Alignment: Faces the challenge of finding its unique niche in the crowded blockchain space, with potential to dominate the AI blockchain niche.
- Potential Price Movement: Despite past price volatility, NEAR shows signs of a potential rally, with upcoming milestones and developments that could influence its value.
