From the perspective of technical results, is NEAR's surge in Q3 data sustainable?

In the third quarter of 2023, the NEAR protocol showed impressive momentum, particularly in terms of daily active addresses and transaction volumes. During this period, the number of daily active addresses increased by 350%, from 60,000 to 260,000, while the daily transaction volume reached an all-time high of 770,000.

THESE ACHIEVEMENTS ARE LARGELY DUE TO THE LAUNCH OF KAIKAINOW, AN INNOVATIVE TECHNOLOGY THAT AIMS TO REDEFINE THE SMARTPHONE LOCK SCREEN EXPERIENCE, PUSHING CUSTOMIZED CONTENT FROM NEWS TO GAMES TO USERS’ HOME SCREENS THROUGH BLOCKCHAIN AND AI TECHNOLOGY.

Despite the moderate decline experienced by the overall crypto market in the third quarter of 2023, NEAR’s market capitalization remained relatively stable, with a circulating market capitalization of $1.08 billion. On the NEAR network, the introduction of USD stablecoins such as USDC has also boosted market activity, with the stablecoin market capitalization reaching $82 million.

In addition, NEAR’s ecosystem has also shown strong growth, particularly in the DeFi and NFT space, and despite the decline in total value locked (TVL), the NEAR protocol still holds a significant position in the blockchain industry. The following is an introduction to the progress of NEAR in the past year.

In 2023, NEAR has taken multiple measures to carry out a series of technological innovations

NEAR launched the BOS operating system (BOS) in April this year, providing a unified interface and a common layer for the Web3 space to build, browse, and discover experiences on any blockchain. It enables users to connect to a variety of communities and apps while maintaining data privacy, without the need to own cryptocurrency. BOS provides a comprehensive platform that solves the complexities of Web3 and the centralized limitations of Web2.

NEAR Protocol is a smart contract platform that uses the Thresholded Proof of Stake consensus algorithm to execute transactions. NEAR introduces the Nightshade Sharding mechanism, which helps increase transaction throughput and scalability, takes a novel approach to basic network functionality, and supports EVM and Substrate through the Aurora and Octopus networks.

In addition, NEAR provides developers with a wealth of tools and resources, including SDKs dedicated to popular programming languages, sandbox environments, NEAR CLI, and NEAR Developer Governance. These resources are designed to facilitate developers’ work within the NEAR ecosystem and enhance their ability to develop applications and services.

In Q3 2023, NEAR hosted the Asia Pacific Conference and released the NEAR BigQuery public dataset, which are important initiatives to support the developer community. NEAR also supports developers through Dev Hub and BOS, aiming to inspire more development activities.

NEAR has established itself in a unique position within the Web3 space through its innovative technology framework and support for developers. As more and more developers and projects join the NEAR ecosystem, it is becoming an important platform for blockchain technology and decentralized applications.

Get a glimpse of NEAR’s innovative breakthroughs in Q3

The third quarter of 2023 is a critical period for technological innovation and ecosystem development for NEAR Protocol. The launch of KAIKAINOW and NEAR Social was the most notable highlight during the quarter, while NEAR also made significant progress in the stablecoin market, technological advancements, developer support, and security.

KAIKAINOW’s innovative contribution: KAIKAINOW, launched by Cosmose AI in September 2023, aims to redefine the lock screen experience on smartphones through blockchain and AI technology, pushing customized content from news to games directly to the user’s home screen. USERS CAN EARN KAI-CHING TOKENS THROUGH INTERACTIONS, WHICH CAN BE REDEEMED ON THE NEAR BLOCKCHAIN FOR ONLINE AND OFFLINE PURCHASES. KAIKAINOW has not only become the most active contract on NEAR, but has also been rated as the most commonly used crypto protocol by Dapp Radar.

NEAR Social’s Ecological Role: NEAR Social, as the social layer of NEAR BOS, provides a peer-to-peer social interaction, content creation, and distribution network. Users can own their own data, developers can access public data to create apps, and customized widgets facilitate innovation. NEAR Social showed solid growth in the third quarter of 2023, with an average of 5,000 monthly active addresses, up 22% QoQ, making it a hub of activity on BOS.

Technical ProgressOctopus 2.0: The NEAR re-staking feature has been introduced, which strengthens the security and flexibility of the network. With this update, stakers can secure the Octopus Appchain through their staked NEAR, enhancing the synergy and security between the NEAR Protocol and the Octopus Appchain. The launch of Octopus 2.0 marks a significant step forward for the NEAR ecosystem in improving network performance and security, heralding greater adoption of NEAR for decentralized applications and cross-chain interoperability.

Development of the stablecoin market: The native USDC stablecoin was introduced on the NEAR network, with a market cap of $82 million, providing more liquidity and stability to the network.

Developer Support and Community Engagement: NEAR’s Asia-Pacific conference and the release of the NEAR BigQuery public dataset in Q3 are important initiatives to support the developer community. The NEAR Dev Hub serves as a repository that provides a platform for developers to collaborate and innovate.

Progress in Security and Decentralization: NEAR continues to strengthen its Proof-of-Threshold Stake (TPoS) consensus mechanism, strengthening the decentralization and security of the network. The implementation of Nightshade sharding has improved the capacity and performance of the network.

NEAR’s performance in the third quarter is very impressive

In the third quarter of 2023, the NEAR Protocol showed significant performance on various key metrics:

NEAR’s average daily trading volume increased by 117% QoQ, climbing from 355,000 to 771,000. Despite the surge in trading volume, the average trading fee has remained stable at around $0.001. This stability can be attributed to NEAR’s unique transaction fee mechanism. Unlike Ethereum’s auction-style system, NEAR adjusts fees based on the network’s computation and bandwidth utilization.

NEAR’s revenue, which comes from network transaction fees and excludes storage staking, grew 9% to $108,000 from $98,000 in the second quarter. This increase is mainly attributed to the increase in trading volume after the launch of KAIKAINOW, and it is worth noting that NEAR has adopted a fee burning mechanism for transaction fees, where 70% of the fees are burned and the remaining 30% is directed to the contract from which the transaction originated.

The DeFi and NFT space remained low, mainly due to the downturn in the crypto market, with NEAR’s total value locked (TVL) down 13% to reach $52 million at the end of the quarter.

NFT activity continues to decline, with Paras Marketplace leading the way, followed by Few and Far, TradePort, and Mintbase.

It is worth looking forward to whether NEAR can take advantage of the momentum of the third quarter of 2023 to move forward

As the third quarter of 2023 comes to a close, NEAR Protocol’s performance during this period highlights its strong momentum as a cutting-edge blockchain technology and ecosystem. Through key technological innovations, ecosystem expansion, and significant growth in users and trading volumes, NEAR has not only strengthened its position in the cryptocurrency space, but also laid a solid foundation for future growth.

Of particular note is the significant growth in daily active addresses and daily trading volume, as well as the decline in average transaction fees, which are a direct reflection of the health, efficiency, and attractiveness of the NEAR network. In addition, important milestones, such as the introduction of native USDC and the launch of Octopus 2.0, not only demonstrate the maturity of NEAR technology, but also bring new development opportunities to its ecosystem.

In summary, the performance of NEAR Protocol in the third quarter of 2023 is not only an affirmation of its continued efforts, but also a clear demonstration of its potential in the future of blockchain technology and applications. As NEAR continues to promote technological innovation and ecosystem building, it is expected to continue to play an important role in the global blockchain field.

Source: Golden Finance