3 reasons why Near Protocol (NEAR) hit a new all-time high

3 reasons why Near Protocol (NEAR) hit a new all-time high

The layer one (L1) battle is starting to heat up again and multiple protocols have seen the value of their tokens rise in recent weeks as traders venture out to see what life is like outside the box. Ethereum (ETH) network).

One of the L1 protocols that has seen its token price rise to a new all-time high this week has been NEAR, a community-driven cloud computing platform focused on interoperability and speed of transactions.

Data from Cointelegraph Markets Pro and TradingView shows that, Following a pullback that reached a low of $13.10 on Jan. 9, NEAR price surged more than 50% to set a new all-time high of $20.36 on Jan. 14.

NEAR/USDT 4-hour chart. Source: TradingView

Among the three reasons that have contributed to NEAR’s growing strength are the successful completion of a $150 million funding round, the success of the Aurora cross-chain bridging protocol, and an expanding ecosystem of projects and developers working in the NEAR network.

NEAR raises $150 million

The recent price hike followed the announcement that the team had successfully closed its latest funding round, raising $150 million from various investors including Dragonfly Capital, a16z, Alameda and Circle Ventures.

NEAR plans to use the funds raised to accelerate the adoption of Web 3.0 technologies by funding the ecosystem, developing regional hubs for the NEAR community that help raise awareness of the brand, and providing support to projects that are based on In the net.

In addition to established communities in Asia, Africa and Europe, NEAR wants to expand its presence in Latin America, Turkey and India.

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A second reason driving NEAR’s rise over the past month has been the successful launch of the Aurora protocol. This platform is built on top of NEAR and helps users and decentralized applications operating on the Ethereum network to bridge the NEAR protocol.

3 reasons why Near Protocol (NEAR) hit a new all-time high

Aurora uses Rainbow Bridge to facilitate the migration of assets between compatible networks and has quickly become a popular protocol for cross-chain transfers, with more than $732 million in total value locked, according to data from Defi Llama.

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As a result of the increase in activity caused by the increased adoption of projects on NEAR and the migration of tokens from Ethereum, the daily transaction count on the NEAR network set a new record of 721,061 transactions on January 11.

3 reasons why Near Protocol (NEAR) hit a new all-time high
Daily transactions in NEAR. Source: NEAR

An expanding ecosystem

A third factor that has contributed to increasing the value of the NEAR ecosystem has been the growth of its developer community. In the last two months, the number of projects launched or connected to the NEAR network has increased.

As seen in the above tweet, NEAR now has the third fastest growing developer community in the entire crypto ecosystem, thanks in part to NEAR developers earning 30% of the transaction fees spent on their contract. This provides an income for developers in a field where compensation is not always guaranteed.

The growing developer community, combined with the launch of a cross-chain bridge, has led to the ecosystem expansion NEAR, which continues to grow and attract new projects.

3 reasons why Near Protocol (NEAR) hit a new all-time high
Projects that make up the NEAR ecosystem. Source: NEAR Mates

VORTECS™ data from Cointelegraph Markets Pro began spotting a bullish outlook for NEAR on Jan. 9, prior to the recent price rally.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current conditions, derived from a combination of data points including market sentiment, trade volume, recent price movements, and Twitter activity. .

3 reasons why Near Protocol (NEAR) hit a new all-time high
VORTECS™ Score (green) vs. NEAR price. Fountain: Cointelegraph Markets Pro

As you can see in the graph above, the VORTECS™ Score for NEAR climbed into the green zone on January 9 and reached a high of 75 around an hour before the price began to rise 52% over the next four days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

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