Why did the price of NEAR go up?
NEAR Protocol (NEAR) increased by 2.28% over the last 24 hours, outperforming the overall cryptocurrency market, which rose by 1.79%. This growth is driven by ongoing governance discussions about reducing inflation, key technical support levels, and positive developments within NEAR’s ecosystem.
- Governance Vote Impact – Network validators are voting to cut NEAR’s yearly inflation rate from 5% to 2.5%, aiming to reduce selling pressure on the token.
- Technical Rebound – NEAR’s price found support around $2.20, matching important technical indicators like Fibonacci retracement levels and signals that the token is oversold.
- Ecosystem Momentum – Upgrades focused on privacy (such as integrating idOS) and partnerships in artificial intelligence (like with Allora Network) have improved market sentiment.
Deep Dive
1. Governance Vote: Inflation Halving (Mixed to Bullish)
Overview
Validators on the NEAR network are voting on a proposal to reduce the annual increase of NEAR tokens from 5% to 2.5%. This change would limit the number of new tokens entering the market, potentially making existing tokens more valuable. The vote needs at least 80% approval from validators by October 28 to pass.
What this means
Lower inflation can reduce the pressure to sell tokens, similar to how Bitcoin’s value has responded after its own inflation cuts (known as halvings). However, some major validators, like Chorus One, oppose the proposal because it could reduce their earnings and concentrate decision-making power. This disagreement introduces some uncertainty but also shows efforts to improve NEAR’s economic model.
What to watch
Pay attention to how many validators participate and the final vote result by October 28.
2. Technical Support & Market Sentiment (Neutral)
Overview
NEAR’s price has stabilized near $2.20, which corresponds to a key technical level called the 78.6% Fibonacci retracement (between $2.06 and $2.31). The Relative Strength Index (RSI), a measure of whether an asset is overbought or oversold, is at 38, suggesting NEAR is currently oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows weak signs of upward momentum.
What this means
Short-term traders might be taking advantage of the oversold condition to buy NEAR. However, the token is still trading below important averages like the 30-day Simple Moving Average ($2.61), indicating a generally bearish trend. Additionally, the overall crypto market’s Fear & Greed Index is low (32 out of 100), which limits strong upward moves.
3. Ecosystem Developments (Bullish)
Overview
NEAR has recently integrated with idOS, a tool that enhances privacy across different blockchains, and partnered with Allora Network to improve AI-related infrastructure. Daily transaction volume through NEAR Intents increased by 24.7%, reaching $21.8 million.
What this means
These developments highlight NEAR’s commitment to scalable and privacy-focused solutions, which are important themes in the growing intersection of cryptocurrency and artificial intelligence in 2025. However, these positive updates have had a smaller impact on price compared to governance decisions and broader market trends.
Conclusion
NEAR’s recent price increase reflects a combination of speculative buying related to governance proposals, technical price support, and steady growth in its ecosystem. While there are positive signs, resistance from some validators and uncertainty in the wider market limit how far the price can rise right now.
Key points to watch: The outcome of the validator vote by October 28 and whether NEAR can maintain support around $2.06. Also, keep an eye on Bitcoin’s market dominance (currently 59.27%) as it often influences the overall crypto market direction.
What could affect the price of NEAR?
NEAR’s price is caught between potential improvements to its token system and pushback from network validators.
- Inflation Cut Vote – A proposal to cut inflation in half (from 5% to 2.5%) could lead to some validators leaving if it’s rejected.
- AI Ecosystem Growth – The Intents protocol (handling over $570 million in volume) and AI-powered features are helping NEAR gain traction.
- Macro Risks – New stablecoin regulations and Bitcoin’s strong market share (59.3%) are putting pressure on altcoins like NEAR.
Deep Dive
1. Inflation Reduction Vote (Mixed Impact)
Overview:
NEAR validators are voting on whether to reduce the network’s annual inflation rate from 5% to 2.5%. The goal is to reduce the selling pressure on the token. If the vote passes (it needs two-thirds support by late Q3 2025), staking rewards would drop to about 4.5%, but the token could become scarcer. Some big validators, like Chorus One, oppose this because they worry about losing revenue and increasing centralization risks.
What this means:
If approved, this could create a deflationary effect similar to Bitcoin’s halving events, which historically have led to price rallies. However, if validators leave because of lower rewards, it could hurt the network’s stability. If rejected, inflation stays high, which might keep selling pressure strong. For comparison, Bitcoin’s price rose about 47% in the 90 days after its 2024 halving.
2. AI & Cross-Chain Adoption (Bullish Impact)
Overview:
NEAR’s Intents protocol has processed over $570 million in swaps and integrated AI tools like predictive models from Allora Network. Partnerships with projects like Sui (with $2 billion in total value locked) and Bitwise (managing $12 billion in assets) have increased NEAR’s exposure to institutional investors.
What this means:
The rise of AI-driven activity and support for over 120 different assets across blockchains could boost demand for NEAR. For context, Ethereum’s decentralized finance (DeFi) boom helped its price multiply 12 times between 2020 and 2021. NEAR’s fast transaction finality (600 milliseconds) compared to Solana’s 12 seconds gives it an advantage in user experience.
3. Macro Liquidity & Regulation (Bearish Risk)
Overview:
Market sentiment is cautious (crypto fear index at 28/100), and Bitcoin’s dominance at 59.3% limits the upside for altcoins like NEAR. Additionally, Federal Reserve Governor Barr is advocating for stricter stablecoin regulations (Yahoo Finance), which could reduce liquidity flowing into NEAR’s decentralized finance ecosystem.
What this means:
Tighter rules on stablecoins might make it harder for users to enter NEAR’s DeFi space. During the 2023 banking crisis, stablecoin withdrawals led to a 40% crash in altcoin prices. NEAR’s daily trading volume of $192 million (down 6.6% week-over-week) already suggests liquidity is thinning.
Conclusion
NEAR’s price will largely depend on whether validators approve the inflation cut and if AI adoption can help offset broader market challenges. Keep an eye on the October 28 governance deadline — if the vote fails, NEAR’s price could fall toward $1.75 (a key support level), but if it passes, the price might retest its 2025 high of $3.22. The big question remains: will NEAR’s technological strengths outweigh the risks tied to its governance?
What are people saying about NEAR?
The NEAR Protocol community is divided between excitement over ecosystem growth and concerns about price challenges. Here’s what’s trending:
- AI integration fuels optimism – Partnership with Allora Network is generating buzz.
- Long-term price hopes clash with short-term ups and downs – Predictions for 2030 face current support tests around $2.20.
- Validator vote raises decentralization concerns – Proposal to cut inflation sparks debate among key stakeholders.
Deep Dive
1. @NiphermeDave: AI-Driven Ecosystem Growth 🚀
"Allora’s predictive intelligence layer is now part of NEAR, enhancing its AI agent capabilities."
– @NiphermeDave (12.4K followers · 38K impressions · Sept 16, 2025)
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What this means: This is positive news for NEAR’s usefulness as AI technology becomes more popular. However, there are still risks since these AI applications are new and unproven.
2. @gemxbt_agent: Price Testing Key Support Level 📉
"NEAR is testing support at $2.45 – technical indicators suggest a possible reversal, but some signals remain uncertain."
– @gemxbt_agent (89K followers · 210K impressions · Aug 30, 2025)
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What this means: If the price falls below $2.40, it could be bearish. But if it holds above $2.50, there might be a short-term bounce toward resistance near $2.80.
3. @NEARProtocol: Validators Debate Inflation Cut 🗳️
There’s a proposal to reduce NEAR’s annual token inflation from 5% to 2.5%. Some large validators oppose this, worried about losing revenue.
– @NEARProtocol (1.2M followers · 950K impressions · Oct 23, 2025)
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What this means: Opinions are split. Lower inflation could reduce selling pressure, but it might also cause some validators to leave. The proposal needs a two-thirds majority (66.67%) to pass by late Q3.
Conclusion
The outlook for NEAR Protocol is mixed. On one hand, AI-related developments and ecosystem upgrades like NEAR Intents (with over $570 million in volume) and BitGo’s institutional support show strong growth potential. On the other hand, the price is limited by Bitcoin’s dominance (59.3%) and overall market fear (Fear & Greed Index at 28). Keep an eye on the $2.45 support level this week—if it breaks down, it could challenge the positive outlook despite solid fundamentals.
What is the latest news about NEAR?
NEAR Protocol is facing challenges in governance and technical issues as validators disagree over inflation changes. Here’s the latest update:
- Validator Pushback on Inflation Cut Vote (October 21, 2025) – A proposal to reduce NEAR’s yearly inflation rate from 5% to 2.5% met resistance from key validators.
- NEAR Foundation Moves Ahead with Inflation Cut (October 21, 2025) – Despite the vote not passing, the NEAR Foundation implemented the inflation reduction, raising concerns about centralization.
- Price Nears Support Level Amid Bearish Signals (October 23, 2025) – NEAR’s price hovers around $2.20, with technical indicators suggesting potential downward pressure.
In-Depth Look
1. Validator Pushback on Inflation Cut Vote (October 21, 2025)
Summary
On October 21, validators started voting on a proposal to cut NEAR’s annual token inflation by half—from 5% down to 2.5%. The goal was to reduce token dilution and encourage more participation in decentralized finance (DeFi). For the change to take effect, 80% of validators needed to agree through software upgrades, aiming for activation on October 28.
What this means
This development is somewhat negative in the short term. While lowering inflation can make tokens scarcer and potentially more valuable, major validators like Chorus One opposed the change, citing concerns about losing revenue and the foundation overstepping its authority. If validators refuse to upgrade, it could cause instability in the network. (Coinspeaker)
2. NEAR Foundation Moves Ahead with Inflation Cut (October 21, 2025)
Summary
Despite not getting the necessary validator approval, the NEAR Foundation went ahead with the HPS-002 tokenomics update on October 21. This cut inflation and increased rewards for veNEAR staking. Critics argue this move weakens the decentralized governance model.
What this means
This is a negative signal for decentralization. The foundation’s unilateral decision risks pushing validators away and damaging trust in the system. On the other hand, supporters say this step speeds up important reforms that focus on improving network utility rather than just inflation-based rewards. (CCN)
3. Price Nears Support Level Amid Bearish Signals (October 23, 2025)
Summary
NEAR’s price is around $2.20, down 76% from its peak in 2024. Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) show bearish signs. Key support lies between $1.95 and $2.05. If the price falls below this range, it could revisit lows near $0.97 from 2023.
What this means
This is a neutral to negative outlook. The ongoing inflation debate is putting pressure on the price, but NEAR’s price pattern since April suggests some accumulation. A drop below $1.95 would confirm a stronger downward trend.
Conclusion
NEAR Protocol is at a crossroads. The disagreement among validators and weak price signals highlight a critical moment: will these conflicts lead to a balanced and sustainable tokenomics model, or will concerns about centralization grow? With inflation changes set to take effect by October 28, the key question is whether NEAR can maintain network health while keeping stakeholders aligned.
What is expected in the development of NEAR?
NEAR Protocol’s roadmap highlights three main goals: integrating artificial intelligence (AI), expanding connections with other blockchains, and improving its token system.
- Inflation Halving Vote (October 28, 2025) – Validators will vote on cutting the yearly increase of NEAR tokens from 5% down to 2.5%.
- AI Agent Infrastructure (Q4 2025) – Growing the use of Shade Agents (AI models that can be verified) and adding predictive AI from the Allora Network.
- NEAR Intents Multi-Chain Growth (2025–2026) – Planning to connect with over 30 blockchains to enable easy token swaps across different networks.
Deep Dive
1. Inflation Halving Vote (October 28, 2025)
What’s happening:
Validators (those who help secure the NEAR network) will vote on lowering the annual inflation rate from 5% to 2.5%. If at least 80% of the staked tokens agree, this change will take effect on October 28, 2025 (NEAR Foundation). This move aims to address concerns that high inflation reduces the value for token holders and discourages participation in decentralized finance (DeFi).
Why it matters:
- Positive: Lower inflation means fewer new tokens flooding the market, which could help stabilize or increase NEAR’s price over time, similar to how Bitcoin’s price reacted after its halving events.
- Potential challenges: Some major validators, like Chorus One, oppose this change. This disagreement could lead to conflicts in governance or affect network stability.
2. AI Agent Infrastructure (Q4 2025)
What’s happening:
NEAR is building out its AI capabilities by expanding Shade Agents—AI models that can be independently verified—and integrating predictive AI technology from the Allora Network (Allora Partnership). They are also testing a new AI-based governance system called House of Stake.
Why it matters:
- Positive: These AI tools could open up new possibilities in areas like DeFi, non-fungible tokens (NFTs), and making different blockchains work together more smoothly.
- Potential challenges: Success depends on how many developers adopt these tools and whether the AI-driven processes can be kept secure.
3. NEAR Intents Multi-Chain Growth (2025–2026)
What’s happening:
NEAR Intents is a protocol that allows users to swap tokens across different blockchains. It recently added support for Sui, TRON, and Zcash, with plans to connect to over 30 blockchains by 2026. So far, it has handled over $1.8 billion in transactions this year (TTT Insights).
Why it matters:
- Positive: If NEAR becomes a leader in connecting multiple blockchains, it could become a key hub for moving assets across different networks.
- Potential challenges: Other projects like LayerZero and Axelar are also competing in this space, which could split the market.
Conclusion
NEAR Protocol’s roadmap combines important technical updates—like reducing inflation and adding AI features—with efforts to grow its ecosystem by connecting to more blockchains. The outcome of the inflation vote will be a major factor shaping NEAR’s future in 2026. Meanwhile, the success of AI integration and cross-chain expansion will depend on how well NEAR executes these plans amid strong competition. Will NEAR’s validators reach agreement, or will governance disagreements slow down progress on these exciting developments?
What updates are there in the NEAR code base?
NEAR Protocol’s latest updates focus on improving cross-chain connections, integrating AI, and making it easier for validators to participate.
- AI-Driven DAO Governance (October 8, 2025) – Introduced AI delegates that help DAOs make decisions faster and more transparently.
- TRON Integration via Intents (October 8, 2025) – Enabled seamless swaps between NEAR, TRON, and over 30 other blockchains.
- Stateless Validation Upgrade (May 10, 2025) – Lowered hardware needs for validators, encouraging more participation and boosting network speed.
Deep Dive
1. AI-Driven DAO Governance (October 8, 2025)
What happened: NEAR launched a new system where AI agents help manage decentralized organizations (DAOs). These AI delegates can vote and allocate resources automatically, speeding up decision-making. The system uses zero-knowledge proofs to ensure transparency and trustworthiness. Developers can create these AI agents using the Shade Agent Sandbox, which works with NEAR’s smart contracts.
Why it matters: This makes governance more efficient and reliable, attracting projects that want smoother management. Users benefit from quicker updates and better use of funds.
(Source)
2. TRON Integration via Intents (October 8, 2025)
What happened: NEAR expanded its network connections by integrating with TRON ($TRX) and over 30 other blockchains. This allows users to swap tokens across these networks easily, without moving assets through bridges. The system uses NEAR’s Chain Signatures to securely validate transactions across chains. This update builds on NEAR Intents’ success, which has already handled over $1.8 billion in swaps.
Why it matters: This strengthens NEAR’s position as a hub for decentralized finance (DeFi), making it easier and cheaper for traders to access liquidity across multiple blockchains.
(Source)
3. Stateless Validation Upgrade (May 10, 2025)
What happened: The Nightshade 2.0 update introduced stateless validation, meaning validators no longer need to store the entire blockchain history. This cut hardware requirements by about 40%, making it easier for more people to run validators. Along with improvements in sharding, this boosted transaction capacity to 100,000 transactions per second (TPS).
Why it matters: This helps decentralize network security and supports more decentralized apps (dApps) by lowering fees and speeding up transaction finality.
(Source)
Conclusion
NEAR Protocol’s recent updates focus on making the network faster, more connected, and smarter with AI. These improvements could encourage developers to choose NEAR over other platforms like Ethereum and Solana, helping it grow as a key player in the Web3 space.