In March, Google issued a warning that future quantum computers could compromise the cryptography protecting Bitcoin [BTC].
The warning rattled the market, and more protocols are taking serious measures to prepare for such risks. NEAR Protocol [NEAR] is the latest chain moving to address these quantum vulnerabilities.
NEAR Protocol’s new upgrade goes live!
After many years in the making, NEAR Protocol’s upgrade 2.13 went live on testnet and included two major upgrades. The upgrade introduced post-quantum-safe access keys using the NIST-approved FIPS-204 signing scheme.
The upgrade aims to boost account security and defend against cryptographic threats. As such, the upgrade adds FIPS-204, a NIST-approved signature scheme designed not only to repel but also to withstand any quantum attack.
Secondly, it introduced dynamic resharding, ensuring that the protocol scales automatically with demand. As the shard fills with state, it splits to distribute it, thus eliminating the need for an upgrade. To achieve this feat, Near Protocol will work together with Ledger to align hardware security for the quantum era.
How did the market react?
As expected, the upgrade incentivized market participants to return. On the spot, for instance, buyers displaced sellers for the first time in five days.
On the 1st of July, the Buy Volume rose to 16.8 million while Sell Volume also jumped to 16.5 million. As a result, the market saw a positive delta of 200k.
The same trend continued on the 2nd of July, with a positive delta of 500k. A positive delta signaled renewed market demand.
On the derivatives side, speculators also rushed to the market. According to CoinGlass, Derivatives Volume climbed 19% to $475 million, while Open Interest (OI) rose 7.5% to $409 million as of writing.
With OI and volume rising in tandem, it suggested that investors rushed to position themselves, driven by upgrade news.
What’s next for NEAR?
News of the 2.13 protocol upgrade sparked a sharp bullish run for NEAR. After a period of decline, the altcoin reversed course, held support at $1.70, and then climbed to $1.92.
At the time of writing, NEAR traded at $1.91, up 5.4% on the daily charts. Over the same period, the altcoin’s volume jumped 16%, signaling increased market participation.
Notably, the NEAR’s momentum strengthened as the Daily Relative Strength Index formed a bullish crossover, rising to 46. At the same time, the +DI of DMI climbed to 19, confirming growing momentum. Taken together, these two indicators point towards the likelihood of a strong upside ahead.
If current demand holds, RSI could flip above 50, validate the trend, and push NEAR toward reclaiming the $2 resistance. In that case, $2.5 would become the next immediate barrier. However, if the move proves speculative and fades quickly, the altcoin could retreat toward $1.70.
Final Summary
- NEAR Protocol’s 2.13 upgrade went live on testnet, introducing post-quantum-safe access keys using the NIST-approved FIPS-204 signing scheme.
- NEAR surged 5.4%, held $1.7, and jumped to $.92, as speculative demand returned in the market.