3 reasons why Near Protocol (NEAR) just hit a new all-time high

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The battle for the first layer (L1) is starting to heat up again and several protocols have seen their token values ​​rise in recent weeks as traders venture out to see what life is like outside of the Ethereum (ETH) network.

One L1 protocol that saw its token price soar to a new all-time high this week was NEAR, a community-run cloud computing platform focused on interoperability and lightning-fast transaction speed.

Data from Cointelegraph Markets Pro and TradingView shows that after a pullback that hit a low of $13.10 on Jan. 9, the price of NEAR soared more than 50% to set a new all-time high at $20.36 on January 14.

NEAR/USDT 4 hour chart. Source: Trading View

Three reasons that have contributed to NEAR’s growing strength include the successful completion of a $150 million funding round, the success of the Aurora Cross-Chain Bridge Protocol, and an expanding ecosystem of projects and developers working on the network. NEAR.

NEAR Raises $150M in Funding Round

The most recent price surge followed news that the team had successfully closed its latest funding round, raising $150 million from various investors including Dragonfly Capital, a16z, Alameda and Circle Ventures.

NEAR plans to use the funds raised to accelerate the adoption of Web3 technologies through ecosystem funding, developing regional hubs for the NEAR community to help build brand awareness, and providing support for s pressing the protocol.

In addition to established communities in Asia, Africa and Europe, NEAR is also looking to expand its reach in Latin America, Turkey and India.

Aurora Cross Chain Bridge

A second factor driving NEAR’s rise over the past month has been the successful launch of the Aurora Protocol. This platform is built on top of NEAR and helps users and decentralized applications that run on the Ethereum network bridge to the NEAR protocol.

Aurora uses the Rainbow Bridge to facilitate the migration of assets between supported networks and has quickly become a popular protocol for cross-chain transfers with over $732 million in total value locked, according to data from Defi Llama.

Due to the increased activity brought by the increased adoption of projects on NEAR and the migration of tokens from Ethereum, the number of daily transactions on the NEAR network set a new high of 721,061 transactions on January 11.

Daily number of transactions on NEAR. Source: CLOSE

Related: Which Layer 1 protocols will perform better in 2022?

Ecosystem expansion

A third development helping to increase the value of the NEAR ecosystem has been the growth of its developer community. There has been an increase in the number of projects launched or linked to the NEAR network over the past two months.

As seen in the tweet above, NEAR now has the third fastest growing developer community in the entire cryptocurrency ecosystem, thanks in part to the fact that NEAR developers receive 30 % of transaction fees spent on their contract. This provides income for developers in a field where compensation is not always guaranteed.

The growing community of developers, combined with the release of a cross-chain bridge, has led to an expansion of the NEAR ecosystem which continues to grow and attract new projects.

Projects in the NEAR ecosystem. Source: NEAR Mates

VORTECS™ data from Cointelegraph Markets Pro began detecting a bullish outlook for NEAR on January 9, ahead of the recent price rally.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity. .

VORTECS™ score (green) versus NEAR price. Source: Cointelegraph Markets Pro

As shown in the chart above, the VORTECS™ score for NEAR moved into the green zone on January 9 and hit a high of 75 about an hour before the price began to rise 52% over the four days. following.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.