The NEAR token experienced a decline over the past two days, retreating to $4.83 from last week’s peak of $5.22. Despite this drop, NEAR remains slightly above its 50-day moving average and is still 57% higher than its lowest point earlier this month.
DeFi Ecosystem Sees Robust Growth
In a notable development, NEAR’s Decentralized Finance (DeFi) ecosystem has witnessed substantial growth in recent weeks. Burrow, a lending platform akin to AAVE, reported a 23% increase in inflows over the past week, reaching $160 million. Similarly, liquid staking applications such as Linear Protocol, Meta Pool, Here Wallet, and AllStake have seen their inflows rise by over 25% during the same period.
Overall, the total value locked (TVL) in NEAR Protocol has surged to over $654 million, marking its highest level since July. In NEAR terms, this represents a rise to 47.6 million. This upswing is attributed to the recent Nightshade 2.0 upgrade, which introduced stateless validation and advanced sharding techniques to enhance scalability and reduce network congestion.
Anticipation Builds for Nvidia Earnings
The NEAR token’s recent movement also reflects traders’ anticipation of Nvidia’s earnings report, due on August 28. Nvidia, a leading player in the AI sector, has seen its market capitalization exceed $3 trillion. The upcoming earnings report will shed light on the continued growth of the AI industry. Nvidia’s last financial results showed a remarkable 240% increase in revenue, reaching $26 billion, surpassing its total earnings for the fiscal year 2021.
Analysts forecast Nvidia’s quarterly revenues to exceed $28.7 billion, up from $26.9 billion in 2022. NEAR Protocol, with its focus on AI development, has attracted companies like Ringfence, Masa, and Cosmose AI, positioning itself as a key blockchain for AI applications.
NEAR Token Faces Downtrend
Despite a 57% increase from its August low, the NEAR token remains in a downtrend. It continues to trade below the upper boundary of a descending channel that has marked its highest points since May 26. The token has been forming a series of lower lows and highs, indicating a potential continuation of the downtrend and a possible retest of support at $4. A bullish breakout would be confirmed if NEAR rises above the descending trendline.
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