NEAR Protocol (NEAR): Infrastructure for AI and L2 – an Undervalued Growth Candidate
$NEAR is a Layer-1 blockchain (L1) designed for scalability, user-friendly applications, and future-focused integration. Its core features include the Nightshade sharding technology, human-readable addresses, and a highly active developer ecosystem.
After peaking in 2021, NEAR experienced a sharp correction. However, by mid-2025, the network shows steady recovery. One key indicator is the Total Value Locked (TVL) across NEAR-based protocols, which has increased from $124 million in April to $173 million in May — a 40% rise, signaling renewed DeFi activity and inflow of liquidity.
Moreover, NEAR is increasingly seen as a player in the AI segment, thanks to emerging projects that combine blockchain and artificial intelligence. The protocol is also pioneering chain abstraction — a concept aimed at simplifying cross-chain interaction. This makes $NEAR a strong candidate for future AI integrations.
Current Market Overview (as of June 4, 2025)
Price: $2.52Market Cap: $3.08 billion24h Volume: $151 millionMarket Rank: #34Outlook: NEAR is recovering from a drop to $2.25 but remains below key moving averages (50/100/200 SMA), limiting short-term momentum.
Technical Analysis
MACD: Bullish crossover suggests potential upward movementRSI: 53 — neutral territory, no overbought signalChart Pattern: "Cup and handle" forming on the daily chart, potential breakout above $2.73 with volume confirmationKey Resistance: $2.63, $2.73, $3.00Support Levels: $2.44, $2.25
A breakout and daily close above $2.73 would confirm the trend reversal and may accelerate price movement toward $3.00 and beyond.
Fundamental Metrics
TVL: $173M as of end-May (+40% from April lows)DEX Volume: $17M daily average (+101% QoQ growth)Developer Activity: -27.7% in Q1 2025 — a potential headwind for rapid innovation
AI Potential and Infrastructure Narrative
Chain Abstraction Layer: Simplifies user interaction across chains — ideal for AI app integrationL2 and Cross-Chain Focus: Strong foundational positioningKey Ecosystem Projects: Aurora (EVM compatibility), Octopus (modular appchains), Calimero (private chains)
These elements form the basis for NEAR’s strategic role in powering future AI and interoperability solutions, especially if institutional interest in the AI sector intensifies.
Conclusion
$NEAR currently remains an underperformer compared to other top altcoins in 2025. This creates an attractive risk/reward profile. A confirmed breakout above $2.73 may trigger a rally toward $3.00 and higher.
Its fundamentals remain solid, although the decline in developer activity is a point to watch. Slower implementation of key updates could act as a drag in the short term.
Recommendation: Monitor trading volume, technical breakouts, and ecosystem updates. NEAR could emerge as a key AI infrastructure player if sector momentum continues.
This article is for informational purposes only and does not constitute investment advice.
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After peaking in 2021, NEAR experienced a sharp correction. However, by mid-2025, the network shows steady recovery. One key indicator is the Total Value Locked (TVL) across NEAR-based protocols, which has increased from $124 million in April to $173 million in May — a 40% rise, signaling renewed DeFi activity and inflow of liquidity.
Moreover, NEAR is increasingly seen as a player in the AI segment, thanks to emerging projects that combine blockchain and artificial intelligence. The protocol is also pioneering chain abstraction — a concept aimed at simplifying cross-chain interaction. This makes $NEAR a strong candidate for future AI integrations.
Current Market Overview (as of June 4, 2025)
Price: $2.52Market Cap: $3.08 billion24h Volume: $151 millionMarket Rank: #34Outlook: NEAR is recovering from a drop to $2.25 but remains below key moving averages (50/100/200 SMA), limiting short-term momentum.
Technical Analysis
MACD: Bullish crossover suggests potential upward movementRSI: 53 — neutral territory, no overbought signalChart Pattern: "Cup and handle" forming on the daily chart, potential breakout above $2.73 with volume confirmationKey Resistance: $2.63, $2.73, $3.00Support Levels: $2.44, $2.25
A breakout and daily close above $2.73 would confirm the trend reversal and may accelerate price movement toward $3.00 and beyond.
Fundamental Metrics
TVL: $173M as of end-May (+40% from April lows)DEX Volume: $17M daily average (+101% QoQ growth)Developer Activity: -27.7% in Q1 2025 — a potential headwind for rapid innovation
AI Potential and Infrastructure Narrative
Chain Abstraction Layer: Simplifies user interaction across chains — ideal for AI app integrationL2 and Cross-Chain Focus: Strong foundational positioningKey Ecosystem Projects: Aurora (EVM compatibility), Octopus (modular appchains), Calimero (private chains)
These elements form the basis for NEAR’s strategic role in powering future AI and interoperability solutions, especially if institutional interest in the AI sector intensifies.
Conclusion
$NEAR currently remains an underperformer compared to other top altcoins in 2025. This creates an attractive risk/reward profile. A confirmed breakout above $2.73 may trigger a rally toward $3.00 and higher.
Its fundamentals remain solid, although the decline in developer activity is a point to watch. Slower implementation of key updates could act as a drag in the short term.
Recommendation: Monitor trading volume, technical breakouts, and ecosystem updates. NEAR could emerge as a key AI infrastructure player if sector momentum continues.
This article is for informational purposes only and does not constitute investment advice.
Subscribe if you want to receive daily analytical breakdowns like this. It's the best way to support the continuation of this work.
#NEAR🚀🚀🚀 #Near #EconomicAlert #Binance #analysis
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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