The NEAR Protocol’s [NEAR] network expansion soared by 156% over the past year, driven by a more positive overall market sentiment following the U.S. elections in November.
By the close of Q3 2024, as per Messari’s findings, the DeFi TVL (total value locked) on the platform stood below $100M, only to skyrocket to $240M by the final quarter, indicating a heightened level of investor interest and confidence.
Despite this, the growth in DeFi TVL witnessed a slight deceleration in the last quarter, mirrored by NEAR’s somewhat inconsistent price performance during the same timeframe.
For instance, in the initial half of 2024, the price of NEAR surged by 160%. However, similar to the broader market trend, it experienced a downturn during the summer, only recovering post-U.S. elections with a 72% upswing.
Nevertheless, the sell-off in December wiped out all gains made post-U.S. elections, leading NEAR to plummet to its 2024 lows of $3 after a 60% decline. What could investors anticipate in the first quarter of 2025?
NEAR: Forecast for Q1 2025
As an AI-focused platform, a portion of NEAR’s recent losses in early 2025 could be linked to the deflation of the AI bubble, triggered by the emergence of OpenAI’s competitor and the introduction of the cost-effective Chinese AI chatbot – DeepSeek.
Similar to many other platforms, NEAR’s price movements were heavily influenced by the number of daily active users and the volume on DEX (decentralized exchanges). These metrics spiked during market uptrends but saw declines during downturns.
Specifically, the drop in NEAR’s price from $8 to $3 was accompanied by a gradual decrease in daily active users and DEX trading volumes.
At present, these metrics have not yet exhibited a strong recovery, potentially keeping NEAR subdued, particularly if broader market uncertainties persist.
On a positive note, the weekly chart indicates that NEAR might have hit a low point around $3.
Remarkably, NEAR saw a rebound at this level in March, August, and November of 2024. Should this pattern repeat, NEAR’s immediate target for recovery could be around $4.7 to $5.
However, a breach below this support level could lead the altcoin down to $2.