NEAR’s TVL surge threatens Cardano: What’s the connection?

Near [NEAR] protocol was having a tough time gaining traction while other cryptocurrencies enjoyed the limelight. However, new data indicated that tides may be turning in Near’s favor.

NEAR to its all-time high

In the last few days, Near protocol managed to reach its all-time high in terms of TVL (total value locked). This meant that the protocol was attracting a large number of users to its network for DeFi purposes.

Source: X

Even though this may be beneficial in the long run, the protocol may end up taking significant market share from other networks such as Cardano.

AMBCrypto’s analysis of Artemis’ data revealed that NEAR had outperformed Cardano in terms of TVL, despite having relatively low DEX (Decentralzied Exchange) volumes on its network.

Source: Artemis

Near managed to outperform Cardano significantly in terms of activity. The number of daily transactions occurring on the network amounted to 6.5 million at the time of writing.

Cardano, on the other hand, saw 48,000 transactions on a daily basis. A similar pattern emerged in terms of daily activity as well.

The number of daily active addresses on the Near network surged from 6.3 million to 7 million over the last few days. Separately, the number of daily active addresses on the Cardano network amounted to a measly 33,800.

For a long time, Cardano was able to dominate in terms of TVL despite having relatively low activity on the network. However, as protocols such as Near catch up to Cardano, it may be difficult for the network to find its dominance again.

Source: Artemis

The disparity in activity on both of these networks has also resulted in the protocol generating massive amounts of fees compared to Cardano.

Artemis’ data indicated that Near collected $27,000 in terms of daily fees at the time of writing. Cardano managed to generate $8,300 in terms of fees on a daily basis.

Source: Artemis

Prices surge

Near also managed to outperform Cardano in terms of price performance of its token.

Realistic or not, here’s NEAR’s market cap in BTC’s terms

Over the last week, the price of NEAR appreciated by 11% whereas ADA grew by 4%.

The only area where Cardano did show dominance was in terms of development activity. Santiment’s data indicated that the development activity on the Cardano network was much higher than for Near.

Source: Santiment