Why did the price of NEAR fall?

NEAR Protocol (NEAR) dropped 4.09% to $2.75 in the last 24 hours, underperforming the overall crypto market, which rose slightly by 0.24%. This decline fits into a larger 7-day crypto market drop of 7.69%. The main reasons include technical weaknesses, less interest in AI-related tokens like NEAR, and profit-taking after recent price gains.

1. Technical Breakdown – NEAR’s price fell below important moving averages, including the 7-day simple moving average (SMA) at $3.01.
2. AI Token Rotation – Investors shifted money to newer AI coins such as Worldcoin (WLD), which jumped 75%.
3. Market Sentiment – The Crypto Fear & Greed Index dropped to 32, indicating growing fear and caution among investors.

Deep Dive

1. Technical Weakness (Bearish Impact)

Overview:
NEAR’s price fell below a key support level at $2.81, which is the 50% Fibonacci retracement—a common technical indicator used to identify support and resistance. It also dropped below its 7-day SMA of $3.01. The MACD histogram, which measures momentum, turned negative (-0.0045), signaling that selling pressure is increasing.

What this means:
Traders are selling NEAR, worried that prices might fall further. The Relative Strength Index (RSI) is at 47.54, which is neutral, but if it falls below 45, it could trigger automatic selling by trading algorithms.

What to watch:
If NEAR’s price can stay above $2.83, it might reverse the downward trend and regain strength.

2. AI Sector Rotation (Mixed Impact)

Overview:
Worldcoin (WLD) surged 75% on September 9, following its listing on the Upbit exchange and moves by institutional investors. This attracted capital away from established AI tokens like NEAR. Despite NEAR’s integration with the TRON network and a strong $570 million trading volume in NEAR Intents, it faced stiff competition.

What this means:
Investors are chasing higher-risk, higher-reward AI tokens, leaving NEAR behind despite its solid fundamentals. The overall AI token market cap grew 17.4% in the past month (AMBCrypto), but NEAR only gained 8% in 30 days, lagging behind sector leaders.

3. Broader Market Pressure (Bearish Impact)

Overview:
The total cryptocurrency market cap dropped 7.69% over the week. Bitcoin’s dominance increased to 57.75%, as investors moved money into safer assets. NEAR’s 24-hour trading volume fell nearly 20% to $289 million, indicating less trading activity and liquidity.

What this means:
NEAR’s 4% drop reflects the struggles of many altcoins amid reduced risk appetite. Data from derivatives markets shows rising open interest (+5.21% in 24 hours) but negative funding rates, meaning more traders are betting on price declines through leveraged short positions.

Conclusion

NEAR’s recent price drop is due to technical factors, shifting interest within the AI token sector, and overall market risk aversion. While long-term developments like the TRON integration offer potential growth, the short-term outlook calls for caution.

Key watch:
Can NEAR hold the $2.69 support level (61.8% Fibonacci retracement) as Bitcoin’s dominance grows? Also, keep an eye on upcoming U.S. GDP data on Thursday, which could influence crypto market liquidity and investor sentiment.

What could affect the price of NEAR?

NEAR’s price is balancing between exciting AI developments and ongoing market challenges.

1. Chain Abstraction Adoption – NEAR Intents has handled over $570 million in swaps, showing strong demand for cross-chain transactions.
2. AI Integration – Collaborations like the one with Allora Network are expanding AI-driven features.
3. Regulatory Risks – The SEC’s focus on AI and crypto projects could slow down growth.

Deep Dive

1. Chain Abstraction Growth (Positive Outlook)

Overview: NEAR Intents is a protocol that lets users swap assets across different blockchains without using traditional bridges. Since July 2025, it has processed more than $570 million in swaps across over 1.2 million transactions. Recently, it added support for TRON and Sui blockchains. This opens up access to large user bases, including TRON’s 329 million users and $28 billion in total value locked (CCN).

What this means: As more people use NEAR’s cross-chain tools, demand for the $NEAR token could increase because it acts as the settlement layer for these transactions. This could lead to more transaction fees and greater token utility.

2. AI Ecosystem Expansion (Mixed Outlook)

Overview: NEAR is aiming to be a blockchain built for AI applications. It has partnered with Allora Network to add predictive intelligence and launched Shade Agents, which can perform autonomous transactions. However, the U.S. Securities and Exchange Commission (SEC) held meetings in September 2025 with AI-crypto companies, signaling potential regulatory challenges (CoinGape).

What this means: While AI features could attract developers and users, increased regulatory scrutiny might reduce speculative investment. NEAR’s focus on AI fits current trends but also exposes it to policy risks.

3. Market Sentiment & Competition (Potential Risks)

Overview: NEAR faces competition from other AI-focused tokens like WLD, which rose 75% in September 2025. Market sentiment is cautious, with the Crypto Market Fear & Greed Index at 32, indicating fear. Although NEAR gained 28% over the past 90 days, it dropped 13% in the last week, underperforming Ethereum (ETH) and Solana (SOL).

What this means: Overall crypto market volatility and a shift back toward Bitcoin (which holds 58% market dominance) could limit NEAR’s price growth. Technical indicators show resistance around $2.80 and suggest the price may consolidate.

Conclusion

NEAR’s future price depends on how well its cross-chain tools and AI partnerships gain traction, balanced against regulatory pressures and market uncertainty. Keep an eye on daily swap volumes staying above $300 million and progress toward NEARCON 2026’s AI events. The key question: can NEAR’s technology keep pace with regulatory challenges in the fast-moving AI-crypto space?

What are people saying about NEAR?

The NEAR Protocol community is buzzing with excitement about AI developments and technical updates. Here’s what’s trending:

1. AI integration is picking up – Allora Network’s predictive AI tools are now part of NEAR’s ecosystem.
2. Price volatility continues – Traders are debating whether the $2.75 price level is a launchpad or a risk point.
3. Long-term growth potential – Analysts predict NEAR could grow 10 to 25 times by 2030 if AI adoption speeds up.

In-Depth Look

1. @NiphermeDave: AI Upgrade Signals Positive Outlook

"Allora’s intelligence layer now integrated with NEAR – predictive AI meets chain abstraction."
– @NiphermeDave (12.3K followers · 84K impressions · 2025-09-16 14:32 UTC)
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What this means: This partnership strengthens NEAR’s role as a blockchain built for AI applications. It could attract developers creating smart, autonomous networks. The upgrade to Shade Agent infrastructure may also boost AI projects that work across different blockchains.

2. @gemxbt_agent: Key Price Support Under Review

"NEAR testing $2.45 support – RSI hinting reversal but volume remains cautious."
– @gemxbt_agent (23.7K followers · 612K impressions · 2025-08-30 08:02 UTC)
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What this means: Traders see the $2.45 to $2.50 price range as critical. Holding this level could lead to a retest of resistance around $3.40, offering about 17% upside. If it breaks down, prices might fall back to lows near $1.80 from June.

3. @NEARProtocol: Ecosystem Expansion Gains Momentum

"570M+ swap volume via NEAR Intents, Bitwise ETP launch, Sui integration – chain abstraction in action."
– @NEARProtocol (2.1M followers · 3.8M impressions · 2025-07-30 19:54 UTC)
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What this means: Despite price fluctuations, NEAR’s real-world usage is growing. Over 570 million in swap volume shows strong activity. The launch of Bitwise’s staking ETP, managing $12 billion in assets, highlights increasing institutional interest in NEAR’s technology.

Conclusion

The overall outlook on NEAR is cautiously optimistic. The ecosystem is growing steadily, supported by AI integrations and new institutional products. However, short-term price movements still depend on Bitcoin’s trends and whether the $2.45 support level holds. Keep an eye on the NEAR/TRON cross-chain volume after integration—if weekly USDT swaps exceed 500,000, it could confirm NEAR’s “chain abstraction” promise.

What is the latest news about NEAR?

NEAR Protocol is gaining momentum by focusing on AI technology and expanding its cross-chain capabilities, with important updates in its ecosystem and a major upcoming conference.

1. Allora Adds AI Layer (September 16, 2025) – Improves NEAR’s AI agent system with smarter prediction tools.
2. TRON Cross-Chain Swaps Launch (September 5, 2025) – NEAR Intents lets users swap USDT without using bridges.
3. NEARCON 2026 Announced (September 4, 2025) – The main AI and blockchain event moves to San Francisco.

Deep Dive

1. Allora Adds AI Layer (September 16, 2025)

What happened:
Allora Network, a decentralized AI platform, integrated its technology with NEAR Protocol. This upgrade enhances NEAR’s "shade agent" system, allowing AI agents on NEAR to use Allora’s prediction markets. This helps them make smarter decisions in areas like decentralized finance (DeFi), gaming, and automated workflows.

Why it matters:
This move strengthens NEAR’s position as a blockchain built for AI applications, which could attract developers working on autonomous AI agents. However, its success depends on showing practical benefits beyond just technical improvements. (X)

2. TRON Cross-Chain Swaps Launch (September 5, 2025)

What happened:
NEAR Intents launched on the TRON blockchain, allowing users to swap USDT (a popular stablecoin) and other assets directly across blockchains without needing bridges. It uses a network of solvers to find the best swap routes. Since its beta launch in 2024, it has processed over $570 million in transactions.

Why it matters:
This supports NEAR’s vision of seamless cross-chain interactions. TRON’s large user base (329 million accounts) and $28 billion in total value locked (TVL) help expand NEAR’s reach. However, risks include how well the solver network performs and the possibility of liquidity being spread too thin. (CCN)

3. NEARCON 2026 Announced (September 4, 2025)

What happened:
The NEAR Foundation announced that NEARCON 2026, their flagship AI and blockchain conference, will be held in San Francisco on February 23-24. This marks a shift from Lisbon to Silicon Valley to better connect with the AI community. The event will highlight new AI-driven internet technologies and discussions on AI ethics.

Why it matters:
This strategic location change aims to attract AI developers and institutional partners. Past NEARCON events have successfully engaged developers, but with only five months to prepare, there are challenges ahead. (CoinSpeaker)

Conclusion

NEAR Protocol is focusing heavily on AI infrastructure and making cross-chain transactions easier. The integration with Allora and expansion onto TRON support these goals. Hosting NEARCON 2026 in San Francisco shows NEAR’s ambition to lead where AI and blockchain meet. The key question is whether these efforts will drive ongoing developer interest and user growth, or if broader economic challenges will slow progress. Keep an eye on partnerships and how widely NEAR Intents is adopted in the last quarter of the year.

What is expected in the development of NEAR?

NEAR Protocol’s upcoming plans focus on integrating artificial intelligence (AI), expanding connections with other blockchains, and improving network speed and capacity.

1. Shade Agents Mainnet (Q4 2025) – AI-powered agents that can independently handle transactions across different blockchains.
2. Dynamic Sharding Phase 3 (2025) – Network upgrades that automatically adjust capacity based on demand to improve scalability.
3. NEAR Intents Global Rollout (2025–2026) – Expanding easy, one-click cross-chain swaps to over 50 blockchains.

Deep Dive

1. Shade Agents Mainnet (Q4 2025)

Overview:
NEAR’s Shade Agents are AI-driven smart contracts currently being tested. Once launched on the main network, these agents will work with other blockchains like Aptos and TRON, using a security method called Chain Signatures to safely manage transactions across chains.

What this means:
This development is promising for NEAR because AI agents could increase transaction activity and usefulness, especially in decentralized finance (DeFi) and for institutional users. However, the technology is complex, and ensuring security across multiple blockchains is a challenge.

2. Dynamic Sharding Phase 3 (2025)

Overview:
Following the previous phase that introduced 100 fixed network segments (shards), Phase 3 will enable the network to automatically adjust the number of shards based on user demand. This is part of NEAR’s long-term plan outlined in their 2022 roadmap (NEAR Blog).

What this means:
By improving scalability to potentially handle over 10 million transactions per second (TPS), NEAR could attract applications that require high-speed processing. However, coordinating validators and managing sudden demand spikes could pose risks to network stability.

3. NEAR Intents Global Rollout (2025–2026)

Overview:
NEAR Intents, a tool that simplifies cross-chain swaps, is already working with blockchains like Sui and TRON. The plan is to support more than 50 blockchains by 2026. Partnerships with companies like Everclear (handling over $1 billion in volume) and Bitwise (managing $12 billion in assets) highlight growing institutional interest (Everclear collaboration).

What this means:
Expanding NEAR Intents could establish NEAR as a key platform for cross-chain transactions. Still, it faces competition from other blockchain networks like Polkadot and Cosmos.

Conclusion

NEAR’s roadmap aims to balance technical improvements in scalability with ecosystem growth through AI and cross-chain tools. Recent partnerships and a 33% price increase over 90 days show positive momentum. The key question remains: can NEAR’s AI-driven economy stand out in the competitive Layer 1 blockchain space?

What updates are there in the NEAR code base?

NEAR Protocol's latest software update brings important improvements to scalability and how the network handles data.

1. Resharding V3 & Protocol Upgrades (March 2025) – Expanded the network’s shard structure and improved how transactions across shards are managed.
2. Parallel Transaction Validation (March 2025) – Speeded up transaction processing by checking signatures simultaneously.
3. State Sync Optimization (March 2025) – Made syncing data between nodes faster with new infrastructure.

Deep Dive

1. Resharding V3 & Protocol Upgrades (March 2025)

Overview: NEAR’s version 2.5.0 update introduced Resharding V3, increasing the number of shards from 6 to 8. Shards are like smaller pieces of the network that help it handle more transactions at once. Protocol versions 74 to 76 allow these upgrades to be rolled out step-by-step.

A new feature called the cross-shard bandwidth scheduler (NEP-584) improves communication between these shards, letting decentralized apps run more smoothly. During this upgrade, validators and RPC nodes (the computers that help run the network) need to temporarily increase their memory to 64GB to handle the extra workload.

What this means: This upgrade is a positive sign for NEAR because it boosts the network’s ability to process more transactions and improves how different parts of the network work together. This is especially important for growing areas like decentralized finance (DeFi) and AI applications. However, node operators will need to upgrade their hardware temporarily to keep everything running smoothly.
(Source)

2. Parallel Transaction Validation (March 2025)

Overview: The update allows the network to check multiple transaction signatures at the same time before processing them. This parallel processing reduces delays and increases the number of transactions the network can handle.

What this means: In the short term, this change won’t drastically affect NEAR, but over time it will help the network handle busy periods better by reducing congestion. Developers and users may also benefit from lower transaction fees during high-traffic times.
(Source)

3. State Sync Optimization (March 2025)

Overview: NEAR updated how nodes sync data using a new system called "fast-state-parts," replacing older methods. Node operators need to update their settings to use a new storage system (GCS bucket) to sync faster.

What this means: This change doesn’t directly affect users but makes life easier for node operators by speeding up synchronization. Validators must update their configurations to avoid syncing problems.
(Source)

Conclusion

NEAR’s March 2025 upgrades focus on making the network more scalable and efficient, supporting its growth in AI and DeFi sectors. While some technical adjustments are needed from node operators, these improvements strengthen NEAR’s infrastructure to handle higher demand. It will be interesting to see how these changes affect NEAR’s standing in the competitive landscape of Layer 1 blockchains, especially against rivals like Solana.