NEAR: Network Upgrade Gives Token 23% Price Boost – Details
26 August 2024 - 3:00AM
NEWSBTC
NEAR has continued to rally despite the market slipping by 2%
today. According to CoinGecko, NEAR, the native token of the
platform, achieved almost 23% gains since last week. This is
largely due to positive on-chain developments, showing that the
altcoin has enough muscle to remain in its current position within
the market. Related Reading: Dogecoin Rally: Over 70% Of Holders
Enjoy Profit As Memecoin Climbs 9% Just recently, NEAR announced
that Nightshade 2.0, NEAR’s touted “novel sharding design”, was
deployed on the platform’s mainnet, improving the already robust
and reliable system users have been enjoying for years.
Nightshade 2.0 Brings New Light To The Validators According to a
recent blog post, network upgrade have brought in stateless
validation, the new sharding architecture for the protocol. This
new architecture improved upon the single-shard performance of the
network. NEAR already has six shards deployed on the network with a
target of ten by the end of the year. It also lowers hardware
requirements to become a validator. Nightshade 2.0 improved the
validator experience by omitting the need to track all of NEAR’s
shards, stimulating the growth of the validator side of the
crypto. “In particular, the new sharding implementation paves
the way to significantly increase the coin’s already-fast
transaction throughput,” said Bowen Wang, Head of Protocol at NEAR
One. According to Illia Polosukhin, Co-Founder of NEAR Protocol and
the CEO of the NEAR Foundation, the network upgrade fixes “the
fundamental bottleneck issue on most L1s of how to scale while
preserving both usability and security.” Rejection Candle Forms
Marking Start Of NEAR Correction Phase With the market’s slippage
on today’s trading activity, NEAR is currently trading on a red
candle as the token is rejected by the $5.2 ceiling, flipping the
momentum to the bears in the short term. This will make losses
inevitable in the short term. Related Reading: Injective
(INJ) Skyrockets 21% As Proponents Weigh In On New Developments
With the market dip flipping the momentum to the bears, it will
continue to affect the crypto’s performance if the bearishness
continues. However, NEAR’s recent developments might slow the fear,
uncertainty, and doubt as the recent development helps network
growth in the long term. Once Nightshade’s effect matures,
NEAR will have a solid base for investor confidence to stand
on. Right now, NEAR has two possible paths that it may take
in the medium term. If the market rebounds after the current dip,
it has the potential to break through $5.7 in the coming weeks.
However, if the dip continues to worsen by the day, NEAR might
return to $3.8 with the worse-case scenario being at $3.0 if the
situation worsen. For now, investors should be cautious by
monitoring the market’s broader movement as any swing can affect
the altcoin’s performance. Featured image from Rebank, chart
from TradingView
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