Table of Contents
Key Insights
NEAR made significant advancements in AI and Chain Abstraction, including:
- AI Research Hub & AI Assistant launched in alpha.
- First AI & Chain Abstraction Accelerator cohorts initiated.
- NEAR Intents gaining traction with integrations like Infinex.
Despite these developments, NEAR’s market cap fell 2.09% QoQ to ~$5.73B, with the token price dropping 7.13% QoQ to ~$4.91. It slipped 10 spots in market cap ranking to 21st, underperforming relative to top assets.
NEAR’s network activity increased, with daily transactions up 7.95% QoQ to 7.42M and daily active addresses rising 15.82% QoQ to 3.55M.
NEAR’s DeFi TVL declined by 4.48% QoQ to ~$240.16M, with Burrow leading the ecosystem, increasing 50.37% QoQ to ~$170.98M, accounting for 68.66% of total TVL.
The Call for Delegates proposal was introduced to enhance decentralized governance and community-driven decision-making.
Introduction
NEAR Protocol is a smart contract platform utilizing Thresholded Proof-of-Stake (TPoS) and Nightshade 2.0 sharding to enhance scalability and cross-chain interoperability. It supports EVM compatibility via Aurora, enabling seamless development and integration.
NEAR aims to abstract blockchain complexity for developers and users. This includes:
- Account Aggregation: Unifying asset and identity management across blockchains.
- Sharded Blockchain: Scaling to billions of AI-driven interactions with low-cost, high-speed transactions.
- NEAR Intents: AI-powered automation for seamless, cross-chain interactions.
The NEAR Foundation is investing heavily in AI infrastructure through initiatives like the NEAR Horizon AI Incubator, Delphi Labs AI Accelerator, and NEAR.AI, with over 50 AI-focused teams actively developing within the ecosystem.
Performance
Market Cap & Price
NEAR’s price surged early in Q4 before retracing, ending the quarter at $4.91, a 7.13% decline QoQ. Its market cap fell 2.09% QoQ to $5.73B, ranking 21st among cryptocurrencies.
Revenue & Supply
- Revenue: Increased 26.81% QoQ to ~$2.11M, driven by higher transaction & DEX volume.
- Token Supply: 95.12% in circulation, with 49.08% staked.
- Inflation Rate: 5.00% annually, with 90% of rewards going to validators & 10% to treasury.
Network Growth
Usage & Adoption
- Daily Active Addresses: 3.55M (+15.82% QoQ)
- New Daily Addresses: 361K (+29.05% QoQ)
- Daily Transactions: 7.42M (+7.95% QoQ)
Developer Activity
- Core Developers: 159 (-13.95% QoQ)
- Ecosystem Developers: 129 (-30.34% QoQ)
NEAR offers extensive developer tools, including SDKs, sandboxes, and governance programs to foster ecosystem growth.
Key Innovations & Ecosystem Expansion
NEAR Intents & Chain Abstraction
- NEAR Intents: Allows AI to autonomously execute cross-chain transactions.
- Chain Signatures: Eliminates the need for traditional bridges, enabling seamless asset movement across chains.
- Real-World Adoption: Infinex, Sweat Wallet, and Allstake leverage these features for cross-chain integration.
User-Owned AI & AI Accelerator
NEAR’s User-Owned AI initiative is pioneering decentralized AI solutions. Key efforts include:
- AI Accelerator & Chain Abstraction Accelerator: Supporting AI-driven DeFi and cross-chain capabilities.
- NEAR AI Assistant & AI Research Hub: AI-powered tools for ecosystem development.
Security & Governance
Nightshade 2.0 & Sharding Expansion
NEAR enhanced its sharding architecture to improve scalability and security:
- Stateless Validation: Enables validators to operate without storing full blockchain state.
- 5x Throughput Increase: Improving transaction speeds by 400%.
- 2025 Roadmap: Plans for dynamic resharding and leaderless consensus.
Call for Delegates & Decentralized Governance
NEAR’s governance expanded with the Call for Delegates proposal, seeking qualified representatives for ecosystem decision-making.
DeFi & Chain Abstraction
- DeFi TVL: $240.16M (-4.48% QoQ)
- Burrow Finance: $170.98M TVL (+50.37% QoQ), 68.66% of total TVL
- DEX Volume: $8.45M daily (+25.40% QoQ)
- Stablecoin Market Cap: $683.69M (+1.88% QoQ, +880.71% YoY)
NEAR is integrating Ethereum wallets (MetaMask, Phantom) and expanding DeFi capabilities through Allstake, Ref Finance, and Chain Signatures.
Conclusion
NEAR made major strides in AI, chain abstraction, and DeFi, despite market challenges. With innovations like NEAR Intents, AI integrations, and Nightshade 2.0, it remains focused on scalability, interoperability, and decentralization. As it moves into 2025, NEAR is prioritizing infrastructure enhancements, governance expansion, and AI-driven blockchain adoption, solidifying its position as a leader in decentralized AI and multi-chain innovation.
By Wolfy Wealth - Empowering crypto investors since 2016
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Wolfy Wealth
Wolfy Wealth
Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile.
