BTC price volatility can cause some cryptocurrencies to diverge negatively. Especially when BTC is declining, this can be frustrating. Investors have been waiting to recover their losses for a long time, but BTC is making lower peaks, altcoins are seeing more sales, and network activity decline is pushing prices to deeper lows. One of these is NEAR Coin.
NEAR Coin Network Activity
The Layer1 network Near Protocol lost significant ground after the FTX collapse in 2022 but recovered. However, competition is heating up. Even in just a few months, many new rivals are emerging as alternatives to smart contract platforms. This is increasing the decline in network activity.
The daily number of unique addresses transacting on Near Protocol began to fall from its peak of 2 million as of July 30. A 43% decline means fewer users, fewer transactions, and less revenue on the network. The daily transaction count fell by 36% during the same period.
Worse, the lack of interest in the network is causing the total locked value to erode and the network value to decline. TVL fell to $172 million, hitting a five-month low after a rapid decline between July 17 and August 6. The 30-day loss is still at 26% today.
Lastly, there is a significant decline in the activity of DeFi platforms on the network. According to data provided by Artemis, activity dropped by 54% in 30 days. Network revenue also fell to $9,000, the lowest figure since February 10.
NEAR Coin Price Prediction
All these negative factors mean that NEAR Coin could be more affected by the decline in BTC price. The price, hovering around $4.2, is trading below the Ichimoku Cloud. This indicates that the current trend for the altcoin is downward, and more losses could occur due to weakness.
If the weakness continues, NEAR Coin is expected to drop to $3.07 with a loss of more than $1. However, if it can rise above the cloud and turn the trend upward again, the target to the north will be $5.3. BTC was hovering at $58,961 at the time of writing.
