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NEAR Protocol Exceeds Ethereum in Daily Active Users: Implications for Cryptocurrency Investors
In an unexpected development, the NEAR Protocol has surpassed Ethereum and its layer-2 alternatives in terms of daily active addresses over the last month, indicating possible changes in the cryptocurrency environment. Data from Artemis dated September 25 highlights this surprising trend, emphasizing the importance of daily active addresses in the crypto sector.
As per Artemis, NEAR Protocol has consistently recorded over 400,000 daily active addresses throughout September, reflecting its expanding user base. In contrast, Ethereum, the pioneering smart contract platform that supports the majority of DeFi and NFT activities, has seen a decline in its daily active addresses.
Ethereum’s daily active addresses exceeded one million in mid-September but have since fallen to below 400,000. A similar trend is observable in Arbitrum, which decreased from approximately 200,000 in late June to 150,000 by September 25.
During this timeframe, NEAR Protocol has witnessed a significant increase in daily active addresses, rising from around 40,000 in late June to over 400,000, thereby outperforming Ethereum in this essential metric. This increase has also resulted in a substantial rise in daily transactions on the NEAR Protocol, exceeding those on Ethereum.
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These figures underscore the relevance of daily active addresses as indicators of adoption, user engagement, and network vitality for public ledgers such as NEAR Protocol and Ethereum. Furthermore, the growth in daily active addresses may indicate shifting market sentiment, which could have a considerable effect on cryptocurrency valuations.
Nevertheless, despite the notable network activity, NEAR, the native token of the NEAR Protocol, is trading close to its 2023 lows at $1.107, representing a 61% decline from its 2023 peaks. The candlestick pattern on the daily chart suggests consolidation and stability above the key resistance level at $1. However, bears may take control if prices remain under $1.23, a significant resistance level established during the highs of August 17.
Interestingly, while network activity seems strong, price movements present a contrasting narrative. Although the transaction volume has increased, the number of unique addresses engaging with NEAR Protocol decentralized exchanges has remained relatively constant. In terms of decentralized exchange volume, NEAR Protocol trails behind Ethereum and its well-known layer-2 platforms.
In summary, NEAR Protocol’s increase in daily active addresses compared to Ethereum and its layer-2 solutions signifies a notable shift in the cryptocurrency landscape. However, investors should proceed with caution and take into account the disparity between network activity, price movements, and the lower DEX volume on NEAR Protocol. These elements provide valuable insights for those navigating the cryptocurrency market during these changing times.
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