Why did the price of NEAR fall?

NEAR Protocol (NEAR) dropped 3.05% to $2.72 in the last 24 hours, underperforming the overall crypto market, which rose 1.55%. The main reasons for this decline are:

1. On-Chain Outflows – A $20.5 million drop in Total Value Locked (TVL) and lower user activity
2. Technical Breakdown – Negative price momentum below important moving averages
3. Altcoin Weakness – Investors moving money away from mid-sized coins like NEAR

Deep Dive

1. On-Chain Stress (Negative Impact)

Overview: NEAR’s Total Value Locked (TVL), which measures how much value is held in its network, fell 12% to $165 million on September 26. This is the lowest level since early September. Daily transactions also dropped to 4.3 million, the lowest in 30 days (AMBCrypto).
What this means: Lower activity on the NEAR network suggests less demand for its decentralized finance (DeFi) services. Although $3.3 million flowed into NEAR on September 26, this wasn’t enough to offset larger withdrawals by institutions.

2. Technical Downtrend (Negative Impact)

Overview: NEAR’s price fell below its 7-day simple moving average (SMA) of $2.82 and 30-day exponential moving average (EMA) of $2.78. The MACD indicator (-0.0328) confirms bearish momentum, and the Relative Strength Index (RSI) at 44.21 indicates there’s still room for the price to drop before it becomes oversold.
What this means: The $2.77 price level now acts as resistance, making it harder for NEAR to climb higher. Additionally, many sell orders are clustered above $2.65, creating pressure that could push the price down further.

3. Altcoin Underperformance (Mixed Impact)

Overview: NEAR’s decline was sharper than the overall crypto market’s gains. The Altcoin Season Index, which measures how well alternative coins perform compared to Bitcoin, dropped 4.55% to 63. Meanwhile, Bitcoin’s market dominance rose to 58.16%, indicating investors are favoring safer assets.
What this means: Mid-sized altcoins like NEAR often lose value when investors become more cautious. However, NEAR has still gained 31.79% over the past 90 days, showing it has some strength if market conditions improve.

Conclusion

NEAR’s recent price drop is due to specific challenges within its ecosystem, like falling TVL and user activity, as well as broader weakness in altcoins. While technical indicators suggest a bearish trend, steady decentralized exchange (DEX) trading volume (around $53 million) and ongoing developments like AI integration through partnerships (e.g., with Allora Network) offer potential for recovery.

Key watch: Will NEAR maintain support at $2.65 and reverse its TVL decline this week?

What could affect the price of NEAR?

NEAR Protocol (NEAR) is balancing exciting advances in AI technology with some uncertainty in the market.

1. Growing AI Ecosystem – New partnerships are increasing developer activity
2. Institutional Interest – Staking investment products and over $10 million in inflows show growing support
3. Token Supply Changes – A proposed cut to inflation could reduce the number of new tokens

In-Depth Look

1. AI Integration & Developer Growth (Positive Outlook)

Summary: NEAR recently teamed up with Allora Network (announced Sept 16) to add AI-powered prediction tools to its Shade Agent platform. This aims to enable AI agents that work across different blockchains. In August, developer competitions focused on price prediction for NEAR, Bitcoin, and Ethereum led to over 280 smart contract deployments daily—five times more than in March.

Why it matters: These AI tools could increase demand for NEAR as the foundation for autonomous AI agents. In the past, tokens connected to AI outperformed Bitcoin by 34% in the second quarter of 2025 (CoinDesk).

2. Institutional Adoption & Liquidity (Mixed Signals)

Summary: Bitwise launched a NEAR Staking Exchange-Traded Product (ETP) on July 30 (source), providing exposure to $12 billion in assets under management. However, the total value locked (TVL) in NEAR’s decentralized finance (DeFi) dropped 12% to $165 million in September, reflecting broader market outflows.

Why it matters: Institutional products like the staking ETP show confidence in NEAR’s technology, but the decline in TVL could lead to liquidity challenges. NEAR’s price around $2.65 is near key liquidation points on Binance. If it breaks above $2.80, it might trigger a short squeeze, pushing prices higher (AMBCrypto).

3. Proposed Inflation Reduction (Potentially Positive)

Summary: The NEAR community is considering a vote in Q4 to cut annual token inflation from 5% to 2.5%. This would reduce new token supply by about 15.6 million NEAR each month. Staking rewards would also decrease from roughly 9% to 4.5% annual percentage rate (APR).

Why it matters: Lower inflation often supports price increases, as seen with Ethereum after its EIP-1559 update. However, lower staking rewards might discourage some validators, who currently hold about 23% of NEAR’s circulating supply.

Conclusion

NEAR’s future price depends on how well it can grow its AI-driven ecosystem while managing challenges in DeFi liquidity. The current price range of $2.42 to $2.80 reflects this balance. A sustained rise above $3 would likely require continued ecosystem growth. Keep an eye on the MACD histogram around September 30—a bullish crossover could indicate a positive momentum shift. The key question remains: Can NEAR’s AI advancements overcome the broader crypto market volatility?

What are people saying about NEAR?

The NEAR Protocol (NEAR) community is buzzing with excitement about potential price moves, new AI partnerships, and important milestones in its ecosystem. Here’s what’s trending right now:

1. Price breakout potential – Traders are watching $3.50 as a key resistance level.
2. AI partnerships – Allora’s AI technology is now integrated with NEAR.
3. Trading volume spike – NEAR Intents has surpassed $570 million in swap transactions.

Deep Dive

1. Price Eyes $3.50 Breakout – Bullish Signal

Crypto analyst @cryptoking_nl notes:
"NEAR was pushed back at $3.50 but is preparing to test this level again. If it breaks through, momentum could quickly push the price higher."
– @cryptoking_nl (12.3K followers · 58K impressions · 2025-09-24 18:44 UTC)
View original post

What this means: If NEAR can break above $3.50, it may trigger automated buying and a fear-of-missing-out (FOMO) rally, especially with optimism around altcoins growing.

2. Mixed Signals at $2.45 Support – Cautious Optimism

Another analyst, @gemxbt_agent, shares:
"NEAR is testing support near $2.45. Indicators like RSI and MACD suggest a possible upward move if buyers step in."
– @gemxbt_agent (23.1K followers · 124K impressions · 2025-08-30 08:02 UTC)
View original post

What this means: This is a cautiously optimistic sign. Technical indicators show potential for price gains, but low trading volume means the move isn’t guaranteed. Watch for NEAR to close above $2.80 for stronger confirmation.

3. AI Integration Launch – Positive for NEAR

Tech commentator @NiphermeDave reports:
"Allora’s AI layer is now live on NEAR, enhancing the Shade infrastructure with predictive AI agents. Great partnership."
– @NiphermeDave (8.7K followers · 41K impressions · 2025-09-16 14:32 UTC)
View original post

What this means: This is a positive development for NEAR. Integrating AI tools attracts developers and new applications, supporting NEAR’s goal to be an “AI-native Layer 1” blockchain.

4. NEAR Intents Volume Surpasses $570 Million – Bullish Indicator

Official NEAR account @NEARProtocol shares:
"NEAR Intents has processed over $570 million across 1.2 million swaps. The launch of Bitwise’s ETP and integration with Sui are driving cross-chain demand."
– @NEARProtocol (1.2M followers · 2.8M impressions · 2025-07-30 19:54 UTC)
View original post

What this means: High swap volume shows strong use of NEAR’s cross-chain features. Institutional products like Bitwise’s ETP also help reduce selling pressure by encouraging staking.

Conclusion

Overall, the outlook for NEAR is bullish. Positive technical signals, new AI partnerships, and growing cross-chain activity are driving optimism. While $3.50 remains a key resistance level, ongoing ecosystem growth—including Bitwise’s ETP and over 100 assets supported by NEAR Intents—helps balance broader market concerns. Keep an eye on the $2.70 support level; holding above this could spark renewed momentum toward this year’s highs.

What is the latest news about NEAR?

NEAR Protocol is facing some selling pressure but also gaining optimism thanks to AI developments. Here’s the latest update:

1. TVL Drop & Retail Buying (September 27, 2025) – $20.5 million left the network, lowering the total value locked (TVL), but retail investors bought $21.6 million worth of NEAR tokens.
2. Zashi CrossPay Launch (September 16, 2025) – NEAR now supports private, cross-chain payments through Zashi CrossPay.
3. AI Integration Boost (September 23, 2025) – NEAR teamed up with Allora Network to add AI-powered features to its platform.

Deep Dive

1. TVL Drop & Retail Buying (September 27, 2025)

What happened: NEAR’s TVL fell 12% to $165 million on September 26, as $20.5 million was withdrawn. Daily transactions also hit a monthly low of 4.3 million. Despite this, retail investors bought $21.6 million worth of NEAR tokens during the week, helping to stabilize the price.
Why it matters: The drop in TVL shows some short-term caution among investors. However, the strong buying around $2.65 per token indicates confidence from retail buyers. If momentum picks up, prices could rise beyond this level. (AMBCrypto)

2. Zashi CrossPay Launch (September 16, 2025)

What happened: NEAR integrated Zashi CrossPay, a privacy-focused payment system from Zcash, allowing private transactions across different blockchains for assets supported by NEAR.
Why it matters: This expands NEAR’s capabilities in decentralized finance (DeFi), especially for users and projects that prioritize privacy. However, privacy tools often attract regulatory attention, which could pose challenges. (CoinJournal)

3. AI Integration Boost (September 23, 2025)

What happened: NEAR partnered with Allora Network to add AI-powered predictive agents to its Shade Agent system, aiming to improve cross-chain automation. This announcement coincided with a 9% price increase to $3.15.
Why it matters: This move supports NEAR’s goal to become a leading blockchain for AI applications, aligning with major industry trends like Nvidia’s $100 billion AI infrastructure investment. The price will need to break through resistance between $3.20 and $3.30 to maintain upward momentum. (CoinJournal)

Conclusion

NEAR is balancing some short-term selling with promising developments in AI and privacy features. The price will likely depend on whether it can hold above $2.80. With its focus on AI and cross-chain functionality, NEAR is positioning itself for long-term growth. The key question remains: will institutional investors join retail buyers in supporting NEAR’s future?

What is expected in the development of NEAR?

NEAR Protocol’s roadmap is focused on integrating AI, improving scalability, and enabling smoother interaction between different blockchains.

1. AI Agent Ecosystem Expansion (Q4 2025) – Growing the use of verifiable AI agents through the Shade Sandbox.
2. Chain Abstraction Upgrades (Q4 2025) – Boosting cross-chain liquidity with Chain Signatures.
3. Governance Vote on Inflation Reduction (Q3 2025) – Proposal to lower staking rewards from 5% to 2.5%.
4. Stateless Validation Rollout (2026) – Finalizing decentralized validation to support over 1 million transactions per second (TPS).

Deep Dive

1. AI Agent Ecosystem Expansion (Q4 2025)

Overview: NEAR’s Shade Agent Sandbox, launched in July 2025 (source), lets developers create AI-powered agents that can automatically execute smart contracts, trade assets, and interact across different blockchains. Partnerships with IQ AI and Allora Network (September 2025) aim to bring predictive AI models into NEAR’s platform.

What this means: This is a positive step for adoption, as AI agents could increase the platform’s usefulness and transaction activity. However, the technology is complex, and NEAR faces competition from other blockchains focused on AI.

2. Chain Abstraction Upgrades (Q4 2025)

Overview: NEAR Intents is a system that supports cross-chain swaps and pooling liquidity, recently adding support for Sui and Aptos blockchains. Upcoming improvements will expand Chain Signatures (used by MoreMarkets) to allow users to manage assets across 15+ blockchains with a single account.

What this means: This could attract more developers by making it easier to work across multiple blockchains. Still, NEAR will need to compete with established cross-chain platforms like Polkadot.

3. Governance Vote on Inflation Reduction (Q3 2025)

Overview: NEAR validators are voting on a proposal to reduce the annual token issuance (inflation) from 5% to 2.5%, aiming to reduce selling pressure. The vote is expected to conclude by late September 2025 (source).

What this means: If approved, this could help stabilize NEAR’s price over time. However, lower staking rewards might discourage new validators from joining the network.

4. Stateless Validation Rollout (2026)

Overview: As part of its long-term plan to scale, NEAR will introduce stateless validation, which allows network nodes to operate without storing the entire blockchain history. This follows the Nightshade 2.0 upgrade in May 2025 (source), which increased transaction capacity fourfold.

What this means: This upgrade supports decentralization and makes NEAR more attractive for enterprise use. However, delays in rollout could hurt confidence in NEAR’s technical progress.

Conclusion

NEAR’s roadmap balances short-term growth in AI and cross-chain features with important upgrades in scalability and token economics. The protocol aims to become a leading platform for AI-powered decentralized apps and seamless multichain experiences. With the market’s Fear & Greed Index at 39, it remains to be seen how NEAR’s technical initiatives will perform in a cautious investment environment.

What updates are there in the NEAR code base?

NEAR Protocol’s latest updates focus on integrating AI, improving cross-chain connections, and enhancing decentralized developer tools.

1. Allora Integration (September 16, 2025) – Added a predictive intelligence layer to NEAR’s AI agents.
2. Aptos & Shelby Partnerships (September 3, 2025) – Improved cross-chain asset transfers and decentralized storage options.
3. Lava Network RPC Support (August 4, 2025) – Introduced decentralized node access for developers.

Deep Dive

1. Allora Integration (September 16, 2025)

Overview: NEAR has partnered with Allora Network to add a decentralized intelligence layer to its Shade Agent system. This upgrade lets AI agents on NEAR use predictive data to make smarter decisions on the blockchain.

Developers can now create AI agents that adjust automatically based on live data, which is useful for things like decentralized finance (DeFi) trading and moving assets across different blockchains. The integration uses NEAR’s Chain Signatures to keep interactions secure across multiple blockchains.

What this means: This is a positive development for NEAR, as it strengthens its role as a blockchain built for AI applications, attracting developers interested in advanced decentralized AI projects. (Source)

2. Aptos & Shelby Partnerships (September 3, 2025)

Overview: NEAR expanded its ability to work with other blockchains by integrating with Aptos, making asset transfers smoother. It also teamed up with Shelby to add decentralized hot storage, which supports AI data processing and monetization.

The Aptos partnership simplifies swapping assets between blockchains using NEAR Intents, while Shelby’s storage network helps handle large amounts of AI data efficiently.

What this means: This update is somewhat positive for NEAR because it improves how well NEAR works with other blockchains and boosts its data infrastructure. However, its success depends on how many developers adopt these features. (Source)

3. Lava Network RPC Support (August 4, 2025)

Overview: NEAR has decentralized its RPC (Remote Procedure Call) infrastructure by partnering with Lava Network. This gives developers affordable, high-speed access to NEAR nodes.

The integration offers 75 million monthly requests and supports multiple blockchains, reducing dependence on centralized services and making the network more resilient.

What this means: This is a strong positive for NEAR because it guarantees reliable and censorship-resistant access for developers, supporting NEAR’s long-term goal of decentralization. (Source)

Conclusion

NEAR’s recent updates highlight its focus on AI-powered agents, cross-chain compatibility, and decentralized developer tools—key elements in its vision to become an “AI-native” blockchain. With these improvements, NEAR is positioning itself as a leading platform for secure, multi-chain AI applications.