NEAR Protocol Suffers 9% Drop Amid Increased Volatility Despite User Base Growth
NEAR Protocol, the second most popular layer-1 blockchain with 46 million active users, faces price challenges amid inflation fears.
NEAR Protocol Suffers 9% Drop Amid Increased Volatility Despite User Base Growth
NEAR Protocol has witnessed an 8.6% decline, falling from $2.696 to $2.492, marked by significant selling volume. Despite these price challenges, the protocol has solidified its position as the second most used layer-1 blockchain, recording 46 million active users as of May 2025, trailing only Solana.
Key Highlights
- NEAR Protocol’s price struggles come alongside a remarkable user growth.
- DWF Labs urges NEAR Protocol to cut token inflation from 5% to 2.5% and has proposed buying an extra 10 million tokens if this change is implemented.
The NEAR token is currently grappling with a period of high volatility, displaying a clear downtrend. Resistance is strong at $2.730, while support is found at $2.445. Recent trading showed a slight recovery from basement levels but continues under essential resistance points, indicating a bearish outlook with ongoing consolidation phases.
Technical Analysis
- NEAR-USD’s downward trend highlights a significant drop from $2.696 to $2.492.
- Notable volume surges occurred during key sell-off events on June 11 and June 12.
- Although there was a minor recovery of 0.7% from a local low of $2.476, NEAR still remains under major resistance levels.
In summary, while NEAR Protocol’s fundamentals reflect healthy growth with a surge in user engagement, the token price’s volatility demonstrates a complex market landscape amid inflationary anxieties.
