NEAR Protocol’s Stablecoin Ecosystem Sees Explosive Growth Amidst Crypto Market Volatility
Despite the current volatility in the crypto market, NEAR Protocol’s stablecoin ecosystem has experienced an incredible 717% increase in market capitalization to $567 million over the past six months. This surge is driven primarily by the strong performance of USDC and USDT. While NEAR’s market capitalization has declined, it has managed to outperform other crypto assets.
USDT, in particular, has experienced significant growth, with its market capitalization now at $187 million, marking a 117% increase quarter-over-quarter (QoQ). This solidifies the momentum of Near Protocol’s stablecoin ecosystem.
Although the network’s circulating and diluted market capitalization decreased by 23.6% and 26.5%, respectively, from Q1 to Q2 2024, the fundamentals of the system remain favorable. NEAR Protocol is experiencing rapid growth due in part to its increasing adoption and usage, with earnings from network transaction fees rising by 43% to around $2.8 million, reflecting a strong on-chain environment.
Despite this, the network’s popularity has significantly increased with the addition of more users, as demonstrated by the 51% increase in average daily active addresses to 1.9 million and a 40% rise from Q1 alone. Additionally, KAIKAINOW, based on NEAR Protocol, has also experienced significant growth; its daily active addresses had grown to over 960,000 by Q2 2024, underscoring the growing appeal of the Near ecosystem.
The NEAR Foundation has allocated $4 million for infrastructure improvements, which are expected to enhance the network’s performance and increase adoption. Transaction fees on the NEAR network have decreased by 15% compared to the previous quarter, making it a more attractive option for users.
The network’s ability to withstand market fluctuations is partly due to the decrease in fees and the wider adoption of the stablecoin ecosystem. Additionally, the prices of USDC and USDT have increased by 303% and 117%, respectively, while QoQ, NEAR’s price has decreased by 23.6% (circulating market capitalization) and 26.5% (diluted market capitalization).
While the decline is largely due to the overall market dynamics, it appears that the network’s fundamentals are showing signs of strength. As a result, NEAR Protocol’s stablecoin ecosystem has experienced significant growth, driven by the strong performance of USDC and USDT. However, the declining market capitalization is still strongly supported by its network foundational principles.
The stablecoin ecosystem of NEAR Protocol is expected to perform well in the near future, as evidenced by its growing adoption, increased user engagement, and declining transaction fees.
For more insights and information on the NEAR Protocol and its stablecoin ecosystem, check out this article on CoinSeeks.com, which provides valuable information and analysis on the topic.
