Near Protocol is a unique blockchain that aims to solve problems of scalability. Its native token for the protocol, NEAR, has been one of the best performers this year, increasing by nearly 10,000%. The performance has caught the attention of investors, who want to see what the future may hold for it.
Here, we take a look at a Near Protocol price prediction for 2022, using token analysis and other factors to make an educated guess at where the price might go.
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What is NEAR Protocol (NEAR)?
Near Protocol is a layer-one blockchain, meaning that it improves the blockchain rather than building on top of it. It aims to eliminate issues such as slow transaction speeds, high costs or a lack of interoperability.
In order to tackle the scalability problem, NEAR uses ”Nightshade,” its own consensus mechanism that is an improved variation of sharding.
Sharding splits the entire network into several segments, which are called shards. This greatly increases transaction speeds, since instead of the entirety of the nodes, only those from the selected shard validate the transactions.
The difference of Nightshade relative to regular sharding is that Nightshade goes further into splitting the shard into multiple parts, further increasing transaction speeds. Therefore, Near protocol will scale linearly as the number of shards increase. So, if the network becomes more congested, this will greatly help in processing increased transactions.
Currently, Nightshade has four shards, which allows it to process 2500–3000 transactions per second. Phase 2 and phase 3 of Nightshade are expected to launch in 2022.
The native token for the platform is NEAR. It powers both the blockchain and all applications that use the token. It also allows users to store data on the network. The token has a maximum supply of 1 billion. There is a fixed 5% of total supply issuance each year, the majority of which goes to validators.
NEAR is used by two groups of individuals:
- Application users: The token is used to pay for transactions in applications that are built on top of the platform.
- Validators and delegators: The nodes that run the network are compensated by block rewards, since Near uses a proof-of-stake mechanism.
The platform has also launched the NEAR wallet, which supports staking.
Current price movement
NEAR appeared to break out from a descending resistance line and reached a new all-time high price on Dec. 15. However, it failed to sustain the upward movement and created a very long upper wick.
Despite this initial setback, the token regained its footing on Dec. 21 and broke out decisively two days later, reclaiming the $12.10 area in the process. This area is now expected to act as support in case a short-term decrease transpires.
The closest resistance areas are at $17.5 and $24.5, the 1.61 and 2.61 external Fib retracement resistance levels, respectively. Both the RSI and MACD support the continuation of the upward movement. The former has just crossed above 70 while the latter is positive and increasing.
NEAR Protocol price prediction for 2022
Beginning on Oct. 20, NEAR increased by 1725% in 132 days. This was likely wave one of a five wave upward movement. Afterwards, the token fell and resumed its downward movement until Jul. 2021.
Another upward movement began afterwards, which was much steeper. The token increased by 716% in only 48 days. However, what followed afterwards was that the token decreased below the prior high (red line). This meant that the increase was not wave three, rather it was just a part of wave three.
So, it seems likely that NEAR is in sub-wave three (black) of wave three (white). When using the length of wave one, there is a clear resistance at $30–$33. Therefore, it is entirely possible that NEAR reaches values between $30–$33 in 2022.
What makes NEAR unique?
The unique aspect about NEAR is ”Nightshade,” its variation on the sharding mechanism. While it is still in its early stages, it will eventually allow the protocol to handle limitless transactions without experiencing a drop in performance. This makes it a very attractive project since due to this mechanism, it would not experience any setbacks even if it gained mass adoption.
Frequently asked questions
What is Near protocol?
How does Near achieve scalability?
How can developers build on Near Protocol?
Top crypto platforms in the US | December 2023
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