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- Near Protocol has seen a huge increase in the number of daily transactions, indicating high network usage.
- The network growth and high Open Interest indicated a bullish long-term outlook.
Close to protocol [NEAR] was trading at $4.47 at the time of writing, following a 12% increase in the stock.
The revival was caused by optimistic support from the broader market as most currencies traded higher following the Federal Reserve’s rate cut decision.
NEAR’s trading volumes were up over 90% at the time of writing CoinMarketCap.
Such a parabolic rise in volumes suggested that the recent gains came from buying activity, raising concerns about the sustainability of the rally.
However, on-chain data suggested that NEAR’s long-term prospects were positive.
The number of daily transactions is increasing
Data from Near blocks showed a significant increase in NEAR’s daily transactions, which are currently approaching a two-week high of 7.33 million.
Daily transactions through the protocol have gradually increased from 6.7 million a week ago. Presumably, network involvement was high, which in turn fueled demand for NEAR.
At the same time, the daily new addresses on the blockchain have grown significantly. At the beginning of this month, these addresses amounted to 687,000.
This has now increased: since September 5, 900,000 new addresses have been added to the network every day.
Source: NearBlocks
Data from DappRadar showed that the high number of transactions came not only from trading activity, but also from decentralized application (DApp) activity.
Monthly dApp transactions on the network increased 14% to more than $182 million. However, monthly dApp volumes are down 54%. This decline can be attributed to NEAR’s price changes.
Open Interest reaches its highest point in eight weeks
NEAR is also attracting the attention of derivatives traders, as Open Interest (OI) had reached $184 million at the time of writing, the highest level since July 25.
NEAR’s OI has been gradually rising since early August, as seen on Coinglass. This suggested that traders are opening new positions as they speculate on future price gains.
Source: Coinglass
At the same time, NEAR financing rates were positive at 0.0112% and are at their highest level since June. This indicated an increased demand for long positions.
Coinglass showed that traders on Binance have gone predominantly long on NEAR since August, indicating a bullish bias towards the altcoin.
Source: Coinglass
One of the reasons that could be driving the bullish sentiment is the growth of Big Data and AI coins.
Read Near Protocols [NEAR] Price forecast 2024–2025
In just one month, the total market cap for these coins has increased from $22 billion to $32 billion at the time of writing. CoinMarketCap.
NEAR is currently the largest AI crypto, dominating over 15% of this market cap.
