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

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The layer one (L1) battle is beginning to warmth up once more and a number of protocols have seen their token values rise in current weeks as merchants enterprise out to see what life is like exterior of the Ethereum (ETH) community. 

One L1 protocol that has seen its token worth climb to a brand new all-time excessive this week was NEAR, a community-run cloud computing platform targeted on interoperability and lightning fast transaction pace.

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Information from Cointelegraph Markets Pro and TradingView present that, following a pullback that hit a low of $13.10 on Jan. 9, the value of NEAR climbed greater than 50% to ascertain a brand new document excessive at $20.36 on Jan. 14. 

NEAR/USDT 4-hour chart. Supply: TradingView

Three causes that contributed to the rising energy of NEAR embody the profitable completion of a $150 million funding spherical, the success of the Aurora cross-chain bridge protocol and an increasing ecosystem of tasks and builders engaged on the NEAR community.

NEAR raises $150 million in funding spherical

The newest worth spike adopted an announcement that the workforce had efficiently closed its newest funding spherical, elevating $150 million from a wide range of traders together with Dragonfly Capital, a16z, Alameda and Circle Ventures.

NEAR plans to make use of the funds raised to speed up the adoption of Web3 applied sciences through ecosystem funding, growing out regional hubs for the NEAR group to assist elevate consciousness for the model and by offering help to the tasks constructing on the protocol.

Along with the communities established in Asia, Africa and Europe, NEAR can also be trying to develop its attain to Latin America, Turkey and India.

Aurora cross-chain bridge

A second issue behind the rise of NEAR over the previous month was the profitable launch of Aurora protocol. This platform is constructed on NEAR and it helps customers and the decentralized functions that function on the Ethereum community bridge to NEAR protocol.

Aurora makes use of the Rainbow Bridge to facilitate the migration of property between supported networks and has rapidly change into a preferred protocol for cross-chain transfers with greater than $732 million in complete worth locked, according to information from Defi Llama.

On account of the elevated exercise introduced by the elevated adoption of tasks on NEAR and the migration of tokens from Ethereum, the day by day transaction rely on the NEAR community established a brand new document excessive of 721,061 transactions on Jan. 11.

Every day variety of transactions on NEAR. Supply: NEAR

Associated: Which layer-one protocols will outperform in 2022?

Ecosystem enlargement

A 3rd growth serving to to spice up the worth of the NEAR ecosystem has been the expansion of its developer group. There was a rise within the variety of tasks launched or bridged to the NEAR community over the previous two months.

As seen within the tweet above, NEAR now has the third-fastest rising developer group throughout the entire of the cryptocurrency ecosystem, thanks partially to the truth that builders on NEAR get 30% of the transaction charges spent on their contract. This supplies an revenue for builders in a discipline the place compensation shouldn’t be at all times assured.

The increasing developer group, combined with the discharge of a cross-chain bridge, has led to an enlargement of the NEAR ecosystem which continues to develop and appeal to new tasks.

Tasks within the NEAR ecosystem. Supply: NEAR Mates

VORTECS™ information from Cointelegraph Markets Pro started to detect a bullish outlook for NEAR on Jan. 9, previous to the current worth rise.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mixture of information factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.

VORTECS™ Rating (inexperienced) vs. NEAR worth. Supply: Cointelegraph Markets Pro

As seen within the chart above, the VORTECS™ Rating for NEAR climbed into the inexperienced zone on Jan. 9 and hit a excessive of 75 round one hour earlier than the value started to extend by 52% over the subsequent 4 days.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you must conduct your individual analysis when making a call.