Although the winter of the cryptocurrency market is not over yet, major project parties and protocols continue to work hard to achieve greater success in the bull market. As one of the representatives of established public chains, Near has been making new moves recently. However, with its eponymous token Near dormant at a low level, will this mean an opportunity for long-term investment? This article will explore the opportunities and variables of Near currency from multiple dimensions.
What is Nearcoin?
Similar to most tokens, Near currency is the native token corresponding to the NEAR Protocol and is mainly used to pay transaction and data storage fees. Other functions include token staking to obtain income and governance voting. The NEAR protocol launched its mainnet on April 22, 2020, and 1 billion NEAR tokens were created. An additional 5% of the supply is issued annually as block rewards, with 90% allocated to validators (4.5% total) and 10% to the protocol reserve pool (0.5% total). 30% of transaction fees are paid as rebates to the contracts that interact with the transaction, and the remaining 70% is burned.
Near coin current price analysis
Near’s current price is $1.135, which has fallen nearly 95% from its historical high of $20.59. Although it has not reached a new historical low, the situation is still very bleak. The weakness of Nearcoin is closely related to the overall downturn in the encryption market, but compared with mainstream Bitcoin and Ethereum, its decline and speed are more violent.
In the past year, the rebound pace of Near currency has basically been in sync with the market. It has rebounded from a low of $1.23 at the end of last year to a maximum of $2.84, and there is still more than 100% room.
From a technical perspective, Near currency is in a clear bear market and lacks clear signals of bottoming or reversal. Even if it is not too far away from the historical bottom range and the lowest point, if there is no sign of a rapid rise, the loss of capital occupation and time value is also a high probability. Therefore, Near coins are not a good option for trend traders or short-term speculators.
From a structural point of view, Near currency fell wave by wave in a triangle structure. After falling below the low at the end of last year, the bears further took control of the situation. In the short and medium term, if the general environment cannot change, it may continue to run along the lower track of the channel to find support. $1.6 currently serves as dual resistance at the weekly high and trend line suppression. Bulls need to overcome the above prices before they have the opportunity to open up more room for rebound.
Forecast analysis of the future trend of Near currency
Despite the huge challenges in the short and medium term, the industry is still confident in Near's long-term performance. DigitalCoinPrice predicts that the currency price will rise to $1.9 by the end of 2023, and the long-term median currency price is bullish to $5.49.
Technewsleader is also optimistic about Near and believes that the currency price will hit 4-5 US dollars by 2026. Analyst Altcoin Doctor is even more actively bullish, predicting that Near can reach $10 by mid-2024.
The following is cryptopolitan’s Near price expectations for the next 10 years based on multiple analysis sources, including the highest/lowest price range and average (all in US dollars):
From the author's perspective, Near coin first needs to break through the downward channel, and then it will have the opportunity to challenge the key pressure of $3. This process will largely depend on the performance of the entire market, such as whether the Bitcoin halving in 2024 can bring about a bull market as expected. Considering the volatility of currency assets themselves, if the market really starts, it may not take many years to reach the early platform level of $6.
What are the advantages of investing in Near coins?
Availability
According to the plan formulated by the Near Foundation at the beginning of the year, usability will be one of its core values. Transform hundreds of millions of users of web2 by eliminating the technical barriers of web3.
Easy to participate
As an investor, one of the advantages of choosing Near coins must be the relatively easier way to participate. For example, Near's ecological wallet can be registered and completed through traditional email, rather than a dedicated wallet like MetaMask.
Fast and low cost
The traditional advantages in transaction speed and transaction costs are also relatively more friendly to outside investors.
In fact, although Near’s currency price is sluggish, the project itself is not in ruins. There have even been some impressive performances recently at the data level. According to the latest statistics from statistics website defillama in September, Near’s returning users have surged by 600,000 recently, and its transaction volume has soared to 1.2 million. The main driving force comes from kaikai, a DAPP. As the flagship product of Cosmose AI (Cosmose is a super ecosystem incubated by Near itself), kaikai integrates functions such as food, shopping, and retail that link traditional life. In short, it can be understood as the Dianping of web3.