The Q1 2023 saw NEAR Protocol recording a robust performance in the market, with its native token NEAR's circulating market cap rising 55% from the previous quarter to $1.67 billion. This outdoing the global crypto market cap, which increased by only 46% over the same period. Moreover, the total gas spent on the network also grew to $120,000, and the network had 64,000 daily active accounts on average, an all-time high for the third consecutive quarter.

The growth of the developer community adopted by NEAR has been notable as well. According to Electric Capital’s annual developer report, the amount of developers on the network has increased by 40% in 2022, emanating a 20x growth since 2018, outdoing most platforms aside from Ethereum.

Simultaneously, though, the number of new accounts created on NEAR dropped, and the volume of average daily transactions decreased to 393,000, shrinking 13% quarter-on-quarter. Moreover, the Total Value Locked (TVL) in NEAR also dropped by 32%, attributed to an Alameda Research-linked wallet deleting liquidity and closing positions.

The platform did experience some positive developments, though. Staking protocols on the network had a 98% quarter-on-quarter increase in TVL to $36 million. Moreover, NEAR introduced DAOs as an attempt to decentralize the process of handling capital. These included Marketing DAO, Developer Governance DAO, Creatives DAO, and the NEAR Digital Collective (NDC). Furthermore, the number of validators on the network reached 200.

All in all, the platform is moving towards expansion, taking strides towards more decentralization and community engagement. The discrepancy in the activity rate and Value Lock can be attributed to the volatility in the crypto markets and the absence of previous investments.



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