A comprehensive report by research firm Messari sheds light on the performance of the NEAR protocol during the challenging third quarter (Q3) of 2024. This period was marked by significant fluctuations in the broader cryptocurrency market.
NEAR Protocol Q3 Performance Overview
The cryptocurrency market faced a downturn in Q2 2024, which extended into Q3, impacting NEAR’s performance. The protocol experienced a decline in its circulating market cap, which fell to roughly $5.16 billion. This represented a significant quarter-over-quarter (QoQ) decrease of about 27.52%.
NEAR’s token price also saw a slight retracement, ending the quarter at approximately $5.29. This marginal decline of 0.21% QoQ did not, however, prevent NEAR from holding its position as the 17th largest cryptocurrency by market cap, showcasing its resilience among leading digital assets.
Interestingly, NEAR’s market cap witnessed a remarkable recovery in the last three weeks of Q3, gaining 54% and reaching $7.99 billion. This surge was part of a broader market rally spearheaded by Bitcoin (BTC) and the geopolitical event of Donald Trump’s election.
Revenue and Transaction Volume
A notable aspect of NEAR’s Q3 performance was its revenue, primarily generated from network transaction fees, excluding storage staking. The revenue dipped to about $1.64 million, marking a 30.13% decline from the previous quarter.
This downturn in revenue was particularly significant as it was the first time in over a year that revenue ended lower than at the start of the quarter. The report attributes this decline to reduced transaction volume, which subsequently led to lower transaction fees—down by approximately 10.48% QoQ and 34.23% year-over-year.
By the end of Q3 2024, around 93.46% of NEAR’s total token supply was in circulation, with 52.36% of that supply staked. The annualized nominal yield from staking was approximately 8.60%, while the annualized real yield stood at 4.09%.
Address Activity and Developer Engagement
Despite facing challenges in transaction volume, NEAR saw a rise in address activity. The average daily active returning addresses increased by 7.27% QoQ, while the average daily new addresses grew by 11.06%.
The report also highlighted a concerning trend in developer engagement. There was a significant drop in NEAR’s weekly active core developers, decreasing by 41.28% from 177 to 104. Similarly, the number of weekly active ecosystem developers fell by 19.70%, from 286 to 230.
Decentralized Finance and Liquid Staking Developments
In the realm of decentralized finance (DeFi), NEAR’s Total Value Locked (TVL) experienced a modest increase, concluding Q3 at around $251.44 million. This represents a 7.63% rise from the previous quarter.
NEAR’s liquid staking TVL also saw growth, increasing by 9.85% QoQ to approximately $279.66 million. Within this, the LiNEAR Protocol contributed a TVL of about $145.14 million, while the Meta Pool experienced a 12.70% growth, totaling around $126.61 million.
Market Outlook and Future Projections
As Q4 begins, NEAR’s token price shows signs of recovery. At the time of writing, the NEAR token is trading at $6.745, having achieved substantial gains of 27% over the past fourteen days and 46% over the thirty-day period. On a year-to-date basis, it has surged by an impressive 266%.
Overall, while Q3 2024 posed several challenges for NEAR, the protocol’s resilience and strategic initiatives in DeFi and liquid staking position it well for potential growth in the coming quarters.
