Near protocol sees a surge in daily active users as…
- Daily user count on Near Protocol recently climbed to its highest since the year began.
- The last week has seen increased demand for the network’s native token NEAR.
— Token Terminal (@tokenterminal) September 9, 2023
The on-chain data provider said the daily count of users on the Layer 1 (L1) blockchain network rallied to a high of 926,943 on 5 September. This represented a 2500% increase from the 36,211-user count recorded on 1 January.
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Due to increased network activity in the past few days, Near has also seen an uptick in transaction fees and protocol revenue. Data from Token Terminal revealed that in the last week, network fees and revenue on the blockchain has increased by almost 100%.
The number of daily transactions on the network surged to its highest level since the beginning of the year as users flocked to the platform. On 5 September, 3.17 million transactions were completed on Near, a 92% jump from the daily transactions count logged on the first day of the year.
However, with the last few days marked by a decline in active wallets, daily transactions count also began its descent. Data from Artemis showed a 46% decrease in the number of transactions executed daily since 5 September.
There are other concerns…
At press time, the total value of assets locked (TVL) on Near was $34.88 million. Data from DefiLlama showed that the L1’s TVL embarked on a downtrend on 2 June 2022 and has since continued to drop. The protocol’s TVL has declined by 51% on a YTD basis.
The value of the protocol’s native coin NEAR, has also been beaten down for most of the year. Exchanging hands at $1.14, the altcoin has seen a 76% drop in price within the last 12 months.
Interestingly, while its price has lingered in a tight range in the last week, NEAR accumulation has grown amongst daily traders in the coin’s spot markets.
Key momentum indicators observed on a daily chart showed that NEAR purchases have climbed steadily since 6 September. At press time, the alt’s Money Flow Index (MFI) rested above the center line at 55 and trended upward.
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Likewise, the %K line (blue) of the altcoin’s Stochastic RSI indicator trended upward at 62.75, suggesting that the volume of NEAR accumulation exceeded distribution. The Stochastic RSI indicator measures momentum and identifies overbought and oversold conditions in the market.
Lastly, its Chaikin Money Flow (CMF) returned a positive value of 0.18 at press time. Generally, a CMF value above the zero-line signals strength in the market.