Why is NEAR important for DeFi?
Decentralized Finance (DeFi) requires scalable, fast, and accessible blockchains. NEAR Protocol meets these demands by offering infrastructure for dApps with low fees and high transaction speeds. Unlike Ethereum, where gas fees can be unpredictable, NEAR uses transaction abstraction, simplifying user interaction with DeFi protocols.
Key features of NEAR
NEAR Protocol stands out due to:
Chain Abstraction: NEAR Intents and Chain Signatures technology allows for cross-chain transactions without complex bridges, simplifying interaction with other blockchains like Ethereum and Solana.
AI-Oriented: NEAR supports autonomous agents that can take actions on behalf of users, making it an ideal platform for AI applications.
Development for all: NEAR supports programming languages such as JavaScript and Rust, lowering the entry barrier for developers.
NEAR token in the ecosystem
The NEAR token is used to pay transaction fees, for staking, and governance. For instance, 30% of transaction fees are distributed among smart contracts, while 70% are burned, reducing the token supply and supporting its value. According to CoinMarketCap, 1.24 billion NEAR tokens are in circulation, with an annual issuance of 5%, of which 90% goes to validators.
Growth and integrations
In 2025, NEAR Protocol strengthened its position through partnerships, such as integration with Infinex to simplify cross-chain swaps and the launch of the NEAR.AI Assistant at the Redacted conference in Bangkok. The platform also attracted the attention of major players like Deutsche Telekom, which became the first telecommunications operator to launch a validator in the NEAR network.
Risks and challenges
Despite its successes, NEAR faces competition and potential vulnerabilities in smart contracts. Investors should consider the volatility of the cryptocurrency market and possible regulatory changes.
NEAR Protocol is a platform that combines DeFi and AI, making blockchain technologies accessible to millions of users. This is a project to watch.