NEAR Protocol: Strong DeFi Growth and Price Recovery Potential

NEAR Protocol’s (NEAR) network experienced a 156% growth last year, spurred by bullish sentiment following the U.S. elections in November.

By the end of Q3 2024, Messari reported the chain’s DeFi Total Locked Value (TVL) was below $100M, but it surged to $240M by the last quarter, indicating heightened investor interest and confidence.

Despite this, the DeFi TVL growth slowed slightly in the last quarter, and NEAR’s price performance was mixed during this period. In the first half of 2024, NEAR’s price increased by 160%, but like the broader market, it declined last summer. It regained some ground post-elections, achieving a 72% gain. However, a sell-off in December erased all post-election gains, sending NEAR to lows of $3 after a 60% drop.

What’s Next for NEAR in Q1 2025?

The losses in early 2025 could be linked to the AI bubble burst following the entry of competitors like DeepSeek, a low-cost AI chatbot. NEAR’s price was also closely tied to metrics like daily active addresses and DEX volume, both of which rallied during price increases and dropped during declines.

Specifically, the decline from $8 to $3 coincided with reduced daily active addresses and DEX volumes. At the time of writing, these metrics had not yet shown a definitive recovery, which could hinder NEAR’s performance, particularly amid ongoing macroeconomic uncertainty.

However, the weekly chart suggests NEAR may have reached a bottom around $3, having rebounded at similar levels in March, August, and November 2024. If this pattern holds, an immediate recovery target could be between $4.7 and $5. Conversely, a drop below support might drive the altcoin down to $2.