NEAR’s TVL fell as Alameda withdrew liquidity. Accounts on NEAR Social increased while NFT activity decreased.

The US SEC’s decision to Close protocol [NEAR] token, among others as security, was the main public highlight of the second quarter (Q2). But beyond that, a number of things happened to the project – some impressive, others? Not so much.

It’s not realistic, here it is NEAR’s market cap in ETH terms

Fortunately, crypto transparency platform Messari took it upon themselves to evaluate the situation with the project. Messari mentioned in its Q2 report that the SEC’s announcement had a significant effect on NEAR’s market cap and earnings. The report noted that,

“NEAR experienced a decline in both circulating market cap and revenue during the second quarter of 2023. Its circulating market cap at the end of the quarter was $1.25 billion, reflecting a 25% quarter-over-quarter decline.”

Unlock sales and supply

However, the increase in total market capitalization, led by Bitcoin [BTC] And Ethereum [ETH]kept NEAR’s from shrinking no lower than stated.

In terms of revenue, the project’s “fee-burning mechanism” and “demand for security model” helped it rake in $98,000. For context, NEAR’s fee burn mechanism occurs when validators get a small portion of each transaction fee by burning a portion of the token supply.

On the other hand, the function of the demand security model is to enable continuous scalability of the network even as demand increases. Moreso, NEAR has taken another step towards unlocking all its tokens by 2025.

In Q2, 81% of the total NEAR supply was now in circulation. This was because it has no fixed supply, but the annual staking proceeds from strikers caused more tokens to be distributed.

Source: Messari

While there were other positives from the project’s progress in the quarter, some previous declines have been as stubborn as a mule. One was NEAR’s Total Value Locked (TVL).

Bye, liquidity

The TVL measures the level of liquidity flowing into a protocol. When it increases, it means that participants trust the protocol enough to pour into the decentralized applications (dApps) that work under it.

But NEAR’s TVL fell 39%. And this was a decline for the fifth consecutive quarter. So this means that the status of the protocol was at risk because it was not performing at its highest capacity.

Arguably one of the reasons the TVL contracted was Alameda’s decision to withdraw liquidity. If marked by Proximity Labs, the trading company headed by former CEO of FTX Sam Bankman-Fried has pulled $16 million from the USN/USDT pool.

Source: Messari

While NEAR hadn’t fully recovered from the slump, protocols such as Burrow and Orderly Network attracted significant interest in the second quarter to ensure that the TVL does not fall more than before. Messari’s report explained,

“Of these, Ref Finance and Bastion were most affected by the Alameda pullout, with TVL falling by $22 million and $15 million, respectively. Conversely, Burrow and Orderly Network emerged as the top winners for the quarter, with TVL increases of $2 million and $2 million, respectively.

Meanwhile, NEAR adoption boomed during the same period, thanks to the Blockchain Operating System (BOS) launched in March.

Hello to the new traction

NEAR created the BOS as an open-source platform. This was to allow developers to build on any blockchain, whether they use web2 or web3 networks.

Furthermore, the BOS widgets, which serve as a building block for developing applications on the NEAR Social, have increased.

This increase suggests that the BOS use case was widely adopted. As a result, the number of accounts on NEAR Social, the basic social layer of the BOS, grew to 15,000 within four months. The report pointed out,

“Since its launch four months ago, NEAR Social has grown in popularity, with over 15,000 user accounts. In particular, NEAR experienced heightened engagement in late May.

Source: Messari

Consequently, the rise in the number of social accounts also had an impact on NEAR’s network activity. According to Messari, the project had an average of 58,000 active accounts every day.

This was a significant increase from the number in Q1. However, the new addresses did not follow and fell by 19% compared to the previous quarter.

Not the best NFT season

NEAR, known for its exposure to the NFT and gaming sector, also maintained a downward trend in this regard.

Like the TVL, NEAR’s NFT activity continued to fall as it has since January. The drop is similar to the drop lack of interest in NFT collections connected to other blockchains such as Ethereum.

Source: Messari

Despite the downturn and upswing, NEAR has managed to maintain a safe level of financial health. At the end of the second quarter, the project’s treasury was close to $1 billion, although there was a slight decline.

How many Worth 1,10,100 NEARs today?

And one of the reasons things didn’t get worse was the NEAR Foundation’s move to turn decision-making over to its Decentralized Autonomous Organization (DAO).

Going forward, the Marketing DAO, Developer Hub, and Ceatives DAO would be responsible for reviewing proposals and enforcing governance on the network.

This post NEAR in Q2: Successive collapses, increasing adoption and more

was published first on


Write A Comment