Why did the price of NEAR go up?
NEAR Protocol (NEAR) increased by 4.08% in the past 24 hours, outperforming the overall crypto market, which rose 2.02%. This growth is driven by ongoing discussions about reducing inflation, positive technical signals, and expansion in its AI-related ecosystem.
- Governance Debate (Mixed Impact)
A proposal to lower NEAR’s inflation rate from 5% to 2.5% did not pass, but there’s talk it might still be implemented, sparking some controversy. - Technical Momentum (Positive)
NEAR’s price moved above key short-term averages, indicating potential upward momentum. - AI Ecosystem Growth (Positive)
New partnerships, like integrating the Allora Network, show NEAR’s commitment to building AI infrastructure.
Deep Dive
1. Governance Debate (Mixed Impact)
Overview: A vote among NEAR’s validators to cut the annual inflation rate in half—from 5% to 2.5%—fell just short of the required 66.67% approval (Blockworks). Despite this, NEAR’s core developers have suggested they might move forward with the change anyway, citing economic reasons.
What this means:
- Positive: Lower inflation means fewer new tokens are created, which can reduce selling pressure on the market (currently about $140 million worth of new tokens each year).
- Negative: Some validators, like Chorus One, oppose the change because they believe it could weaken the network’s decentralization and reduce rewards for staking.
What to watch: Keep an eye on how validators feel about this and when the protocol upgrade might happen, expected by late October.
2. Technical Momentum (Positive)
Overview: NEAR’s price, currently around $2.36, has risen above its 7-day simple and exponential moving averages ($2.24 and $2.25 respectively). The Relative Strength Index (RSI) at 45.74 suggests there’s still room for the price to go up before it becomes overbought.
What this means:
- The MACD indicator shows that bearish momentum is weakening.
- The next resistance level is at $2.87, based on the 23.6% Fibonacci retracement. If NEAR holds above $2.40, it could aim for $2.50.
3. AI Ecosystem Growth (Positive)
Overview: NEAR has integrated the Allora Network’s decentralized AI layer (Allora), which improves its Shade Agent platform used for predictive analytics.
What this means:
- This strengthens NEAR’s position in AI-powered blockchain applications.
- It follows recent hires focused on AI, including a Chief Product Officer dedicated to NEAR AI.
Conclusion
NEAR’s recent price increase reflects optimism about lowering inflation and expanding AI partnerships, though governance challenges remain a concern. The outcome of the failed vote is still important—if validators don’t support the upcoming software upgrade, it could cause price swings. Key point to watch: Whether at least 80% of validator stakes adopt the v2.9.0 software by October 28 to enable the inflation cut.
What could affect the price of NEAR?
NEAR’s price is currently caught between two forces: upgrades that reduce token supply and disagreements among network validators.
- Inflation Cut Debate – A proposal to cut NEAR’s yearly token issuance in half (from 5% to 2.5%) sparked controversy. While fewer new tokens could make NEAR more valuable, some validators oppose the change and might leave the network.
- Growth in AI Use – NEAR’s Intents protocol has processed over $570 million in transactions, and new AI partnerships could boost adoption.
- Regulatory Challenges – New global rules on stablecoins may create obstacles for NEAR’s plans to connect with other blockchains.
Deep Dive
1. Inflation Reduction Vote Fallout (Mixed Impact)
What happened:
On October 24, 2025, a vote to reduce NEAR’s inflation rate from 5% to 2.5% did not get enough support from validators (those who help secure the network) to pass (Blockworks). Despite this, NEAR’s core team might still implement the change through a software upgrade, bypassing the usual voting process. Validators like Chorus One oppose this, warning it could centralize control.
What this means:
Lower inflation means fewer new tokens entering the market, which can reduce selling pressure and help increase NEAR’s value over time. However, forcing this change without validator approval risks some validators leaving. If more than 20% of validators exit, it could weaken network security and reduce staking rewards (currently expected around 4-4.5%), causing short-term price swings.
2. AI & Cross-Chain Adoption (Positive Outlook)
What’s happening:
NEAR’s Intents protocol handled over $570 million in swaps across more than 20 blockchains in July 2025. Partnerships with companies like Bitwise (which offers staking exchange-traded products) and Allora Network (which uses predictive AI) are helping NEAR attract more developers and institutional users (NEAR Protocol, Allora).
What this means:
NEAR is becoming a hub for automated transactions powered by AI and cross-chain technology. According to recent data, every 10% increase in Intents volume could generate an additional $2-3 million in weekly buying pressure through fee burns, which helps reduce token supply and supports price growth.
3. Regulatory Ripple Effects (Potential Risks)
What’s the issue:
On October 17, 2025, Federal Reserve Governor Barr called for stricter regulations on stablecoins (MEXC). This could impact NEAR’s stablecoin transactions, which make up about 23% of Intents volume.
What this means:
Tighter rules on stablecoins like USDG and FRAX, which are important for NEAR’s ecosystem, might slow down growth. If stablecoin inflows drop by half, it could wipe out recent weekly price gains of about 6.6%.
Conclusion
NEAR’s near-term future depends on balancing token supply changes with keeping validators on board. At the same time, regulatory developments and AI adoption will play key roles. Keep an eye on the validator stake ratio after any upgrades—if it falls below 60% (currently around 67%), it could signal deeper governance problems. The big question: can NEAR’s AI initiatives make up for the political challenges it faces?
What are people saying about NEAR?
The NEAR Protocol (NEAR) community is balancing optimistic growth ideas with concerns about token supply, all while watching important price levels. Here’s what’s trending right now:
- Excitement around AI integration through Allora Network’s smart prediction tools
- A vote among validators to cut token inflation from 5% down to 2.5%
- Mixed price forecasts with some expecting a rise to $3.40 and others warning of a drop to $2.20
Deep Dive
1. AI Integration Boost via Allora Network (Positive)
@NiphermeDave shared:
"Predictive intelligence now powers NEAR’s Shade Agent infrastructure via @AlloraNetwork."
See original post
What this means: This is good news for NEAR. Adding AI-driven features can attract developers who want to build smart, autonomous applications. This fits well with NEAR’s goal to support scalable AI projects, potentially increasing its use and value.
2. Proposal to Reduce Inflation (Mixed Impact)
@DWF Labs noted:
"Cutting NEAR’s inflation to 2.5% would make it scarcer long-term, but validators oppose revenue loss."
See original post
What this means: Lowering inflation means fewer new tokens are created, which can make NEAR more valuable over time. However, some validators (who help secure the network) are worried about losing income, which might slow down or block this change. So, this is a mixed signal—good for long-term value but uncertain in the short term.
3. Price Struggles and Technical Analysis (Cautious)
@UniChartz reported:
"NEAR faces rejection at $8 resistance; breakdown below $2.45 support risks 20% drop."
See original post
What this means: NEAR is having trouble breaking above a key price level around $8. If it falls below $2.45, it could drop another 20%, which is a warning sign for investors. This suggests the price might face downward pressure unless it can hold above that support level.
Conclusion
The outlook for NEAR is mixed. On one hand, new AI partnerships and plans to reduce inflation could boost its value. On the other hand, price momentum is weak, and some validators are hesitant about changes. Keep an eye on the $2.45–$2.50 price range—if NEAR stays above this, it could signal a positive trend. But if it falls below, it might lead to panic selling. The upcoming vote on inflation will be important—it could either strengthen NEAR’s position or create challenges.
What is the latest news about NEAR?
NEAR Protocol is facing challenges in its governance and technical outlook as validators disagree over proposed changes to inflation.
- Inflation Cut Sparks Governance Clash (October 24, 2025) – The core team may push through a rejected proposal, raising concerns about decentralization.
- Validator Backlash Grows (October 23, 2025) – Key validators oppose the changes, putting network stability at risk.
- Bearish Market Signals Appear (October 23, 2025) – NEAR’s price is testing important support levels amid governance uncertainty.
Deep Dive
1. Inflation Cut Sparks Governance Clash (October 24, 2025)
Overview:
A proposal to reduce NEAR’s annual token inflation from 5% to 2.5% did not get enough votes from validators to pass. Despite this, NEAR’s core developers are considering implementing the change through a software update anyway. They argue that the current inflation rate, which costs about $140 million per year, is too high compared to the fees collected so far this year ($3.2 million).
What this means:
This move could lead to concerns about centralization because it bypasses the usual voting process and the validators’ authority. While lowering inflation might reduce selling pressure on the token over time, ignoring the vote could create problems for how future decisions are made. (Blockworks)
2. Validator Backlash Grows (October 23, 2025)
Overview:
Validators such as Chorus One have criticized the core team’s plan, saying it “sets a dangerous precedent.” The NEAR Foundation responded by saying that taking action is necessary to keep the network financially stable, pointing out that other blockchains like Solana have even higher inflation compared to their fees.
What this means:
There is growing tension between maintaining the network’s integrity and ensuring its financial health. If validators refuse to update their software, it could split the network or reduce the number of validators actively securing it, which currently stands at 318. (Yahoo Finance)
3. Bearish Market Signals Appear (October 23, 2025)
Overview:
NEAR’s price is around $2.36, testing the lower end of its recent trading range between $1.95 and $3.25. Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest weakening momentum. If the price falls below support, it could drop to around $1.39.
What this means:
The technical outlook matches the governance uncertainty. The price has been moving upward since April 2025 but now faces resistance. Failure to bounce back could mean a longer period of price decline. (CCN)
Conclusion
NEAR Protocol is at a crossroads. Moving forward with contested upgrades might improve the token’s economic model but could harm the network’s decentralized nature. At the same time, technical signals suggest the token could face further price drops if governance conflicts continue. The key question is whether validators will find a way to work together or if NEAR will have to choose between efficiency and community trust.
What is expected in the development of NEAR?
NEAR Protocol is focusing on integrating AI and growing its ecosystem:
- Inflation Halving Vote (October 28, 2025) – Validators will decide whether to cut token emissions from 5% to 2.5%.
- AI-Driven Governance & Agent Infrastructure (Q4 2025) – New tools for AI agents and on-chain governance are coming.
- NEAR Intents Expansion (Ongoing) – Cross-chain swaps and partnerships with institutions are expanding.
In-Depth Look
1. Inflation Halving Vote (October 28, 2025)
What’s Happening?
Validators on the NEAR network are voting on a proposal to reduce the yearly increase of NEAR tokens from 5% to 2.5%. This move aims to slow inflation and improve the overall value of the token. To pass, the proposal needs approval from 80% of validators by October 28, 2025. If approved, it would be NEAR’s first inflation halving, similar to Bitcoin’s approach to limiting supply (Yahoo Finance).
Why It Matters
- Positive: Lower token supply growth could help stabilize prices and encourage people to stake their tokens for the long term.
- Concerns: Some validators, like Chorus One, oppose the change. If the core team forces the cut without broad agreement, it could hurt the network’s decentralization.
2. AI-Driven Governance & Agent Infrastructure (Q4 2025)
What’s Happening?
NEAR is developing AI-focused tools, including the House of Stake AI Copilot (a working prototype) and the Shade Agent Sandbox, which lets developers create AI agents that can be verified on the blockchain. The recent hiring of executives like George Zeng as Chief Product Officer for NEAR AI highlights the project’s commitment to privacy-focused AI solutions (Binance News).
Why It Matters
- Positive: This positions NEAR as a leader in blockchain-based AI, attracting developers and big investors.
- Challenges: NEAR faces competition from other AI-focused blockchains like Fetch.ai, and building these complex systems is technically demanding.
3. NEAR Intents Expansion (Ongoing)
What’s Happening?
NEAR Intents is a protocol that allows different blockchains to work together. It has already handled over $570 million in transactions (as of July 2025) and added support for blockchains like Sui, TRON, and Zcash. Upcoming features include the Calyx Launchpad for launching new tokens and partnerships with institutions like Bitwise for staking products (X Post).
Why It Matters
- Positive: This strengthens NEAR’s role in decentralized finance (DeFi) across multiple blockchains and could increase demand for $NEAR as a transaction fee token.
- Challenges: Continued growth depends on keeping users engaged despite competition from other cross-chain solutions like LayerZero.
Conclusion
NEAR Protocol’s roadmap focuses on improving its token economics, advancing AI capabilities, and expanding cross-chain functionality. The upcoming inflation vote on October 28 will be a key test of the network’s governance. Meanwhile, AI and NEAR Intents developments aim to secure NEAR’s position in the decentralized infrastructure space. The big question remains: Will the validators’ decision to cut inflation strengthen NEAR’s economy or raise concerns about centralization?
What updates are there in the NEAR code base?
NEAR Protocol’s latest updates focus on making the network faster, easier to use, and smarter with AI integration.
- Resharding V3 Upgrade (March 2025) – Increased the number of shards from 6 to 8, boosting network capacity.
- Nightshade 2.0 (May 2025) – Made transactions 4 times faster and lowered developer costs.
- AI-Driven Governance Launch (October 2025) – Introduced AI agents to help manage decentralized organizations (DAOs).
Deep Dive
1. Resharding V3 Upgrade (March 2025)
What happened: NEAR increased its shards (smaller parts of the network that process transactions) from 6 to 8. This helps the network handle more activity at once. They also improved how these shards communicate with each other using a new bandwidth scheduler.
Validators (the computers that keep the network running) now need more powerful hardware, specifically 64GB of RAM during certain updates. Shard IDs no longer correspond directly to account ranges, making the system more flexible.
Why it matters: This upgrade is great for NEAR because it allows apps that need a lot of transactions, like decentralized finance (DeFi) and gaming, to run more smoothly. However, running a validator node has become more expensive in the short term due to higher hardware needs. (Source)
2. Nightshade 2.0 (May 2025)
What happened: NEAR revamped its core technology to make transactions four times faster and reduce the gas fees developers pay by 30%. They introduced parallel transaction validation and a way for validators to work without storing the entire blockchain history (stateless validation).
They also added compatibility with Ethereum wallets like MetaMask and enabled Chain Signatures, which make it easier to use accounts across different blockchains.
Why it matters: This update makes it easier for Ethereum developers to build on NEAR and improves the experience for users with faster transaction finality (under 2 seconds). It also simplifies working across multiple blockchains. (Source)
3. AI-Driven Governance Launch (October 2025)
What happened: NEAR introduced AI-powered delegates that help automate voting and resource management in decentralized autonomous organizations (DAOs). These AI agents analyze on-chain data to suggest and approve governance decisions.
This system aims to reduce voter fatigue and speed up funding for important projects.
Why it matters: This is a promising step for NEAR, experimenting with new ways to manage decentralized communities. Its success depends on how widely it’s adopted but could position NEAR as a leader in autonomous governance. (Source)
Conclusion
NEAR’s recent updates focus on scaling the network (Resharding V3), improving usability and speed (Nightshade 2.0), and innovating governance with AI. These improvements strengthen NEAR’s position as a high-performance, developer-friendly blockchain. As sharding and cross-chain tools mature, NEAR aims to maintain its lead in developer activity and outpace other layer-1 blockchains.