Bitcoin‘s price fluctuations can negatively impact certain cryptocurrencies. When Bitcoin declines, it often leads to frustration among investors who have been waiting to recuperate their losses. Bitcoin’s lower peaks and increased altcoin sales have resulted in declining network activities, pushing prices to deeper lows. NEAR Coin is one such cryptocurrency experiencing this downturn.
Challenges in NEAR Coin Network
Near Protocol, a Layer1 network, has faced significant setbacks after the collapse of FTX in 2022 but managed to recover initially. However, the competition in the smart contract platform market has intensified, leading to a decrease in network activity. The daily number of unique addresses transacting on Near Protocol has dropped from a peak of 2 million as of July 30, reflecting a 43% decline.
This decline in user and transaction numbers has also impacted the network’s revenue. Daily transactions have plummeted by 36% during the same period. The disinterest in the network has also led to a significant erosion in the total locked value (TVL), dropping to $172 million and hitting a five-month low. The network has seen a 26% loss in TVL over the past 30 days.
Impact on DeFi Platforms and Revenue
DeFi platforms on the Near Protocol network have also witnessed a substantial drop in activity, with a 54% decline over 30 days, according to Artemis data. This reduction in network engagement has caused revenue to fall to $9,000, the lowest since February 10. These trends highlight significant challenges for Near Protocol’s overall ecosystem.
Actionable Insights
Here are a few critical points for stakeholders:
- Monitor BTC price trends to anticipate potential impacts on NEAR Coin.
- Evaluate the competition and consider strategic alliances or improvements.
- Focus on increasing network activity and user engagement to stabilize revenue.
- Explore opportunities to boost TVL through innovative DeFi solutions.
These actions can help mitigate the adverse effects and potentially reverse the current downward trend.
Current Price Forecast for NEAR Coin
All these adverse factors suggest that NEAR Coin may be more susceptible to Bitcoin’s price decline. Currently trading around $4.2 and positioned below the Ichimoku Cloud, NEAR Coin faces a downward trend. If the weakness continues, the price could drop to $3.07, losing more than $1. Conversely, if it manages to rise above the cloud, the upward target would be $5.3. Bitcoin was trading at $58,961 at the time of writing.
