NEAR, the native token on the blockchain of the same name, gathered on Friday amid speculation that the protocol will introduce its own stablecoin. The token also benefited from a series of venture capital investments in the blockchain.
NEAR was up about 24% in the past 24 hours, trading at $18.92 – just a few dollars short of its lifetime high of $20.2. The token also rose 46% in the past week as it raised $350 million in a funding round led by digital investor Tiger Global.
The blockchain’s largest DeFi protocol, Trisolaris, also recently raised $4.5 million.
Venture capital firm Digital Currency Group revealed that the NEAR recently launched its third largest crypto holding†
Near-based stablecoin in April?
Zoran Kolefounder of the popular Telegram group Crypto Insiders said Near will launch the new stablecoin, USN, on April 20. The proposed token will be an algorithmic stablecoin and will compete with Terra’s UST.
The token also offers a 20% APR, which would make it the highest DeFi yield on the market. For reference, Terra’s Anchor Protocol offers a return of 19.6%, currently the highest on the market. Near Protocol has not confirmed the news.
Kole said he expects increased interest in the token to likely double its market cap in the coming months. He also said Near’s focus on developer incentives is likely to attract more buildings on the blockchain.
The real Ethereum 2.0?
Near is a proof-of-stake (PoS) blockchain built specifically to compete with ETH. It supports several features that are yet to be implemented in ETH with the 2.0 upgrade, such as higher wagering rewards and a smaller carbon footprint.
But the token has benefited greatly from the proposed move from ETH to a PoS model. Interest in PoS spilled over from ETH and into other tokens, such as NEAR, Cardano (ADA), and Solana (SOL).
Still, NEAR is much smaller than ETH in market capital and is not considered widespread adoption either. But that could change as more capital flows into the blockchain.
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About the author
With over five years of experience in global financial markets, Ambar plans to leverage this knowledge for the fast-growing world of crypto and DeFi. His main interest lies in finding out how geopolitical developments could affect crypto markets and what that could mean for your bitcoin holdings. When he’s not scouring the internet for the latest news, you can play him video games or watch Seinfeld reruns. You can reach him at [email protected]
This post NEAR protocol ($NEAR) soars 24% to near record high, here’s why
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