Near Protocol’s Recent Performance

Good afternoon, my degenerate crypto friends. How are you doing today? I’m feeling a bit under the weather, but I’m okay. Near Protocol is on a tear, currently at $2.69, whereas just three months ago, it was under $1. The big question is, how high can it go? Honestly, I have no idea. I have a significant amount of Near, and after being way down, I’ve recovered everything and even made a good profit. I’m unsure whether to sell now and wait for a pullback, as I’m kind of expecting one since it just keeps rising.

Arthur Hayes suggests we have a long way to go, encouraging us to pack our bags for the moon. However, there’s some debate about the actual growth potential. While it seems Near is about 10x from its high, inflation changes the picture. The real chart shows a 3x increase to the all-time high, considering an inflation rate of 2.5% per year. This is crucial to remember when evaluating any token, as inflation affects the market cap and price. For instance, Near’s market cap is currently around $3.5 billion, compared to its all-time high of approximately $12 billion.

Understanding Near Protocol and Its Competitors

Near is a protocol designed for AI machines to operate independently, unlike Tao, which incentivizes AI projects with TOW tokens. While both compete for the top spot as AI tokens, they are fundamentally different projects. Near has impressive adoption metrics, with 46 million monthly active users, 16 million weekly active users, and a peak of 3 million daily active addresses. Despite its recent growth, it ranks only 33rd in market cap, although it boasts a 240% growth rate and a 12x increase in active addresses. Monthly developer numbers have reportedly increased by about 40% year-on-year.

Developer Activity and Market Position

In terms of developer activity, Ethereum remains number one, followed by Solana. Surprisingly, Polygon and Stellar are also high on the list, with Stellar making a comeback. Near Protocol ranks sixth in developer activity, even above BNB, yet it’s 33rd in market cap. Developer activity is a crucial growth metric, although Near doesn’t have much Total Value Locked (TVL) as it’s not designed for that purpose.

Revenue and Future Prospects

Near significantly outperforms Tao in DeFi revenue, averaging $118,000 in daily fees across decentralized finance applications, which is approximately 7.6 times higher than Tao’s daily revenue. Although Near’s revenue isn’t extraordinary, it’s still noteworthy. People often compare Near and Tao, but they are fundamentally different, like apples and oranges. Near is a great protocol and deserves the current attention, but everything eventually pulls back. I’m contemplating whether to sell now and wait for a pullback, as selling during a bear market isn’t a bad idea when you have good profits. Near has become my second biggest holding due to its recent surge. That’s it for today; I’ll see you tomorrow. Bye.