A surprising development over the past month has seen the NEAR Protocol outperform Ethereum and its layer-2 competitors in terms of daily active addresses, indicating future changes to the crypto ecosystem.
Daily active addresses in crypto are an important metric that shows how many activities are going on within a project. Let’s discover what is happening with NEAR.
NEAR is Getting Mass Adoption?
Data from Artemis, an institutional data site for digital assets, revealed that the number of daily active addresses on the NEAR Protocol surpassed the 400,000 level in September. This demonstrates NEAR’s growing user base.
What's happening on Near?
Daily active addresses for select blockchains yesterday📊👥
• 650k – Near
• 302k – Ethereum
• 292k – Polygon
• 178k – Solana
• 128k – Arbitrum
• 77k – Optimism
• 71k – BaseAccording to both @Artemis__xyz and @tokenterminal, the Near blockchain… pic.twitter.com/EcUxtnr7E0
— Thor⚡️Hartvigsen (@ThorHartvigsen) September 24, 2023
Mid-September saw a spike in the number of daily active Ethereum addresses. But those figures have since fallen to less than 400,000. This declining trend was also present in Arbitrum, which declined from approximately 200,000 in late June to 150,000 by September 25.
NEAR’s numbers increased dramatically from around 40,000 in late June to over 400,000. Additionally, as a result of this upsurge, the daily transaction volume on the NEAR Protocol has surpassed that of Ethereum.
One take – they are being very multi-chain friendly; deploy any EVm front-end on NEAR (BOS), partnerships within zkEVM, Mantle, etc. while also signing *and putting into production* large web 2.5 deals that onboard tons of users (even if they don’t now it). These deals are case…
— AVB | alejandro.near (@AvbNear) September 25, 2023
Blockchains like NEAR and Ethereum often rely on a community that regularly transacts, moves value, or validates the network. However, the number of daily active addresses can offer important information about a network’s well-being.
Aside from showing an increase in user adoption, the number of daily active addresses can indicate a shift in market sentiment, which could have a big impact on prices.
NEAR Price Stays Down
NEAR’s impressive network activity is yet to extend to its native token. The NEAR token currently trades at $1.10 and has had a 1% decline in the past seven days. In addition, NEAR has dropped by over 60% from its 2023 high. In this tweet, there is an answer to this increase:
NEAR Foundation has been on a relatively quiet but aggressive onboarding of Web 2.5 deals (18+ announced). Just Cosmose (KaiKai) broke ath daily txs and pushed us to top daily active wallets, #1 app. Focus should be on the tech and UX that enable mass, frictionless onboarding
— AVB | alejandro.near (@AvbNear) September 25, 2023
NEAR’s increased user activity is a good sign. However, Near only generates about $2k per day from this large number of users.
So we advise investors to exercise caution, taking into account the differences in network activity, price movement, and reduced DEX volume on the NEAR Protocol.
Disclaimer
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