As traders explore the world outside of Ethereum (ETH), the layer one (L1) war is heating up again. Multiple protocols have seen their token value rise in recent weeks.
NEAR, a community-run cloud computing platform that focuses on interoperability as well as lightning fast transaction speeds, is one L1 protocol that saw its token price rise to an all-time high.
Cointelegraph Markets Pro and TradingView data show that NEAR prices rose more than half a percent after a pullback that reached a low point of $13.10 Jan. 9. The new record high was set at $20.36 Jan. 14.
NEAR/USDT 4-hour chart. Source: TradingView
NEAR’s growing strength can be attributed to three factors: the $150 million successful funding round, the success with the Aurora cross-chain protocol, and the expanding ecosystem of developers and projects working on the NEAR network.
NEAR raises $150 Million in funding round
This price surge was caused by the announcement that the team had raised $150 million from various investors, including Alameda, Dragonfly Capital and Circle Ventures.
@NEARProtocol raises 150M to support ecosystem growth #NEAR announced that a $150 million round of funding was closed by @zhusu’s Three Arrow Capital. Participants included @MechanismCap and @a16z as well as @dragonfly_cap and #Alameda. Learn https://t.co/DjilZpkYPH
NEAR Blockchain (@NEAR_Blockchain), January 13, 2022
NEAR intends to use the funds to accelerate Web3 technology adoption via ecosystem funding. NEAR will also develop regional hubs to promote the brand to their community and provide support for projects that build on the protocol.
NEAR plans to expand its reach beyond the existing communities in Asia, Africa, and Europe.
urora cross-chain bridge
The successful launch of Aurora protocol was another factor in the rapid rise of NEAR over recent months. This platform is built upon NEAR and helps users and decentralized applications on the Ethereum network to bridge to NEAR protocol.
The Rainbow Bridge is used by Aurora to facilitate asset migrations between supported networks. It has quickly become a very popular protocol for cross-chain transfers, with more than $732,000,000 in total value locked according to data from Defi Lama.
Due to the increase in activity caused by NEAR’s adoption of more projects and the migration tokens from Ethereum, daily transactions on NEAR reached a record high of 721,061 transactions on January 11.
NEAR receives a daily number of transactions. Source: NEAR
Related: Which layer one protocols will be the best in 2022?
Expansion of the Ecosystem
The growth of the NEAR community has also contributed to the ecosystem’s value. Over the past two-months, there has been an increase of projects that have been launched or connected to the NEAR network.
Developers on #NEAR receive 30% of the txns fees they spend on their contract! This is one of the many reasons MAD on @NEARProtocol has grown rapidly. It has seen 4x+ growth in a year! Top 3 in fastest-growing dev ecosystem pic.twitter.com/UCe9jYVRcG
— THE NEARWEEK N @NEARWEEK January 11, 2022
NEAR is the fastest growing cryptocurrency developer community. This is due in part to 30% transaction fees that NEAR developers receive. Developers in fields where compensation is uncertain can benefit from this income.
A combination of an expanding developer community and the release of a cross chain bridge has resulted in the expansion of NEAR, which continues to grow.
NEAR ecosystem projects Source: NEAR Mates
Data from Cointelegraph Markets Pro shows that VORTECS(tm), which is a data source for VORTECS(tm), began to identify a bullish outlook on NEAR in January 9, before the recent price rise.
Cointelegraph’s exclusive VORTECS(tm), Score is an algorithmic comparison between historical and current market conditions. It is derived from a combination data points, including trading volume, market sentiment and recent price movements, as well as Twitter activity.
VORTECS(tm). Score (green) vs. the NEAR price. Source: Cointelegraph Markets Pro
The chart shows that the VORTECS(tm), Score for NEAR rose into the green zone Jan. 9, and reached a peak of 75 just one hour later. This was before the price started to rise by 52% over four days.
com. You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.