The NEAR protocol has surpassed Solana in the number of daily active users, putting the Layer 1 blockchain in the spotlight.
While the price of NEAR has dropped by more than 5% in the last 24 hours, analysts say it may be undervalued.
Why NEAR protocol's rise might be the market's best-kept secret
The NEAR protocol recently reached 3 million daily active users, achieving second place among all Layer 1 blockchains.
According to market analyst Lenart Snyder, this achievement indicates an acceleration in the adoption of the NEAR protocol.
Snyder wrote that "NEAR has surpassed Solana in the number of daily active users... reaching 3,000,000 daily active users, the NEAR protocol now ranks second among all Layer 1 blockchains."
While user growth alone is noteworthy, technical analysts believe that the price chart may indicate a larger move ahead.
Some traders point to a clean double bottom pattern above key support. Analysts link this technical formation or chart pattern to the accumulation of smart money in cryptocurrency trading.
In drawing parallels with the Wyckoff strategy, the analyst suggested that if NEAR follows the historical playbook, the next phase could be a sharp upward movement.
At the same time, the bullish case extends beyond chart patterns. Some traders see NEAR as fundamentally undervalued compared to other top-tier blockchains.
Analyst Santolita described it as one of the best asymmetric bets right now, pointing to several catalysts over the next two years.
Santolita pointed out that "from now until 2026, the chart is filled with growth catalysts, AI integration, institutional adoption, bridge expansions, and protocol upgrades."
Santolita expects the price of the NEAR protocol to reach $10.82. With the NEAR token trading at $2.61 at the time of this report, the target estimate would represent a 315% increase over current levels.
The growing buzz around the NEAR protocol: a signal of a breakout or just market noise?
These factors seem to resonate with retail sentiment as well. Kairn, a decentralized finance researcher and cryptocurrency podcast host, noted that NEAR is trending upward on Google Trends.
Google Trends on NEAR [is on the rise]. I feel the next phase of the uptrend is upon us with NEAR.
Google Trends metrics are often associated with increased investor curiosity and new inflows.
Recent performances of NEAR and ecosystem developments indicate a shift in narrative. Ongoing network upgrades and institutional partnerships could solidify its position as more than just a competitor to Solana. Such a move could make it a market leader in user engagement and transaction speed.
However, technical setups alone may not guarantee an uptick given the broader market's sensitivity to macroeconomic conditions.
Analysts warn that while Wyckoff accumulation phases often precede major moves, external factors like liquidity flows and regulatory developments will determine how far NEAR can progress.