NEAR Protocol experienced significant growth in the DeFi sector in 2024, with its network growth surging 156% due to increased investor interest and confidence following the U.S. elections in November. Despite a slowdown in DeFi TVL in the last quarter, NEAR Protocol’s price performance was mixed, with significant gains in the first half of the year followed by a decline and eventual recovery post-elections. However, a December sell-off erased these gains, causing NEAR’s price to drop to $3.
Looking ahead to Q1 2025, NEAR Protocol’s losses at the beginning of the year may be linked to the burst of the AI bubble, triggered by the debut of a Chinese AI chatbot competitor to OpenAI. The price of NEAR Protocol has shown a strong correlation with daily active addresses and DEX volume, with spikes in these metrics during rallies and drops during drawdowns. Despite a potential recovery target of $4.7 or $5 based on past trends, a break below support could push NEAR to $2.
It is important to note that NEAR Protocol has historically rebounded at the $3 level in previous months, including in March, August, and November of 2024. This pattern suggests a potential support level for the altcoin, although a decisive recovery in daily active addresses and DEX volume is needed to sustain this trend moving forward. Market uncertainty may also impact NEAR’s price performance in the near term, so investors should monitor these metrics closely.
In conclusion, NEAR Protocol’s strong DeFi growth in 2024 was reflective of broader bullish sentiment in the market, but its price performance has been volatile and influenced by external factors such as the AI bubble burst. While past trends suggest a potential rebound for NEAR at the $3 support level, ongoing monitoring of daily active addresses and DEX volume is crucial to assessing its future performance. With a recovery target of $4.7 or $5 in sight, NEAR Protocol’s price could see further movement in Q1 2025 based on market developments and investor sentiment.
