The last two months have been a wake-up call for the broader crypto market as the holiday season approaches. Although the hype has since died down, a few outliers continue to follow the upward trend. NEAR is one of those tokens that shows no signs of cooling down.
According to Coingecko, the token is up almost 8% on the daily period, with the largest increase being 23% on the weekly period. With this price increase, NEAR just reached a new high of $2.81. The token reached its all-time high of $20.42 in January 2022.
The token’s market capitalization has also increased significantly, with its price currently sitting at around $2.8 billion. Several on-chain integrations are fueling this new wave of uptrend for NEAR.
NEAR: Monolithic and modular?
Recently, eyes have been on NEAR as it continues to improve its systems. According to a AVERAGE In a post last week, the protocol is implementing more changes to become what they call a “monolithic and modular” blockchain.
“In a monolithic blockchain, all four functions are performed by the same set of nodes. This has some advantages, such as high security, easier deployment, and potentially improved utility for users due to the ability to specialize the entire network,” the Medium article states.
Although the NEAR team claims the token is a monolothic chain, its sharding implementation does not overwhelm individual validators. However, this is not enough for users as users and developers quickly realized that publishing on Ethereum was becoming an expensive ordeal.
But NEAR DA aims to change that.
NEAR market cap currently at $2.839 billion. Chart: TradingView.com
NEAR DA (“DA” meaning data availability) will allow rollup operators to access NEAR’s storage capacity.
“NEAR runs four fragments with a throughput of approximately 16 MB per second. Assuming 100 bytes per transaction, you can store a fairly large amount of your data on NEAR for a fraction of the cost of publishing to NEAR,” the article explains.
At the time of writing, only a handful of rollups use NEAR DA; namely Caldera, Fluent and Movement Labs. Once this capability is in the hands of commercial users and other rollup operators, NEAR will be able to increase its exposure to other investors.
In the meantime, according to Artemis data, there has been a significant increase in network activity on the NEAR blockchain since the beginning of the month.
The data source claims that there has been a 975% increase in the daily number of unique wallet addresses sending on-chain transactions on the network.
How does this affect the price of NEAR?
As of now, the token is on the verge of breaching the $2.90 price cap. However, it appears that the January 2022 high of $20.42 will be difficult to crack as the bears put up a strong defense. But the advent of strong chain development as well as good market conditions will bring more optimism in the short and medium term.
For now, investors and traders should prepare for a possible correction towards $2.25 once the hype begins to die down.
Featured images from Shutterstock
Disclaimer: The article is provided for educational purposes only. It does not represent the views of NewsBTC on whether to buy, sell or hold investments and, naturally, investing involves risks. You are advised to carry out your own research before making any investment decision. Use the information provided on this website entirely at your own risk.