NEAR Protocol Q3 2024 Deep Dive: Market Cap Dip, Revenue Trends, and DeFi Growth

The third quarter of 2024 presented a mixed bag for the NEAR Protocol, mirroring the broader cryptocurrency market’s volatility. While a significant market cap decline occurred, positive trends in DeFi and network activity offer a nuanced perspective.

Market Cap Fluctuations

Messari’s recent report reveals NEAR’s circulating market cap plummeted approximately 27.52% quarter-over-quarter (QoQ) to roughly $5.16 billion. The NEAR token price experienced a minor 0.21% QoQ dip, closing Q3 around $5.29. However, a subsequent market rally propelled NEAR’s market capitalization to $7.99 billion, representing a remarkable 54% increase in just three weeks.

Revenue and Transaction Activity

A notable concern is the 30.13% QoQ drop in NEAR’s revenue, totaling approximately $1.64 million. This marks the first quarterly revenue decline in over a year, attributed to a 10.48% QoQ and 34.23% year-over-year reduction in transaction volume and fees. Despite this, average daily active returning addresses saw a 7.27% QoQ increase, and new addresses grew by 11.06%, suggesting underlying network health.

Developer Activity and DeFi Landscape

A significant downturn was observed in developer engagement. Weekly active core developers decreased by 41.28%, while ecosystem developers fell by 19.70%. This warrants further investigation into potential contributing factors. Conversely, the Total Value Locked (TVL) in NEAR’s DeFi ecosystem saw a modest 7.63% QoQ rise, reaching approximately $251.44 million. Liquid staking TVL also experienced growth, increasing by 9.85% to approximately $279.66 million, with LiNEAR and Meta Pool contributing significantly.

Staking and Tokenomics

As of Q3 2024, 93.46% of NEAR’s total token supply was in circulation, with 52.36% staked. The annualized nominal yield from staking was around 8.60%, while the real yield stood at 4.09%. The long-term health and sustainability of NEAR’s staking mechanisms remains a vital factor for future growth.

Conclusion

NEAR’s Q3 performance reflects a complex scenario. While the market cap dip and revenue decline are noteworthy challenges, positive developments in DeFi, network activity, and the recent market surge suggest a resilient ecosystem. Continued monitoring of developer engagement and the evolving DeFi landscape will be crucial in assessing NEAR’s trajectory.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct thorough research before making any investment decisions.