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Exploring The 27% Plummet And Key Financial Metrics

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A recent report from research firm Messari provided an overview of the performance of the NEAR Protocol (NEAR) during the tumultuous third quarter (Q3) of 2024, when the broader cryptocurrency market experienced significant volatility.

Close to Q3 protocol performance

Throughout the second quarter of 2024, the cryptocurrency market witnessed a decline that continued until the third quarter of the year NEAR. Protocol The traded market value decreased To approximately US$5.16 billion, reflecting a significant quarter-on-quarter decline of approximately 27.52%.

The price of the NEAR token also fell slightly, closing the quarter at around $5.29, a marginal decline of 0.21% on a quarterly basis. Despite these challenges, NEAR has managed to maintain its position as the 17th largest cryptocurrency by market cap, indicating relative stability among leading digital assets.

Near’s market capitalization declined amid the broader market decline in the third quarter. source: Facilitator

However, over the past three weeks, it has gained 54% in market cap, rising to $7.99 billion amid the broader expansion. Market pool Led by Bitcoin (BTC) and the catalyst being the election of Donald Trump.

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One notable aspect of NEAR’s third-quarter performance was its revenue, which measures network transaction fees excluding storage shares. Revenues declined to approximately $1.64 million, marking a 30.13% quarter-over-quarter decline.

This decline is especially significant because it represents the first quarter of last year where revenues ended lower than they started. The report attributes this to a decline Transaction sizeresulting in transaction fees decreasing by approximately 10.48% on a quarterly basis and 34.23% on a yearly basis.

As of the end of Q3 2024, approximately 93.46% of the total supply of NEAR tokens was in circulation, with 52.36% of that supply being in circulation. The annual nominal return from staking was about 8.60%, while the annual real return was 4.09%.

Despite challenges in transaction volume, NEAR has seen an uptick Title activity. Average daily active addresses increased 7.27% quarter-on-quarter, and average daily new addresses increased 11.06%.

The TVL rises, and the fluid volume increases

The report also highlighted a worrying trend in developer engagement. NEAR saw a significant drop in the number of weekly active core developers, down 41.28% from 177 to 104. Likewise, the number of weekly active ecosystem developers dropped by 19.70%, from 286 to 230.

In terms of decentralized finance (DeFi), NEAR’s Total value unlocked TVL reported a modest increase, ending the third quarter with approximately $251.44 million, representing a 7.63% increase from the previous quarter.

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DeFi TLV near rise in Q3. source: Facilitator

It is worth noting that the total value of NEAR’s liquid equity stakes also increased by 9.85% on a quarterly basis, reaching approximately $279.66 million. The LiNEAR Protocol had a TVL of around $145.14 million, while Meta Pool saw a 12.70% increase, for a total of around $126.61 million.

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The daily chart shows the NEAR price recovery since the beginning of Q4. source: NEARUSDT is TradingView.com

At the time of writing, the NEAR token is trading at $6,745 and has seen significant gains of 27% and 46% in the 14-day and 30-day time frames respectively, while year-to-date it has seen a massive 266% surge.

Featured image of DALL-E, chart from TradingView.com

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