NEAR Token Overview (Updated January 21, 2022):
Table Content:
- NEAR Ecosystem Highlights
- Current Status and Roadmap
- Key Components of the NEAR Ecosystem
- Stablecoins
- Automated Market Maker Decentralized Exchanges (AMM DEXs)
- Oracles
- Lending & Borrowing
- Initial DEX Offering (IDO) Platforms
- NFT Marketplaces
- Future Outlook and Investment Opportunities
- Future Projections for NEAR
- Investment Opportunities in the NEAR Ecosystem
- Investment Thesis for the NEAR Ecosystem
- Market Cap & Fully Diluted Valuation: $8.88B & $14.36B
- Ranking: 22nd
- All-Time High/Low: $20.44 / $0.52
- Circulating & Total Supply: 618,406,798 / 1,000,000,000 NEAR
- Major Exchange Listings: Binance, Huobi, OKEx, Gate.io, and more.
NEAR Blockchain Metrics (Updated January 21, 2022):
- Transactions Per Second (TPS): 100,000 TPS (potential with 1 million nodes)
- Node Count: 59
- Block Time: 1.01 seconds
- Total Transactions: 77 million
- Average Transaction Fee: $0.10
Key Backers and Investors: Three Arrows Capital, Jump Capital, Alameda Research, Zee Prime, Amber Group, Dragonfly Capital, Coinbase Ventures, Andreessen Horowitz (a16z), Multicoin Capital, Pantera Capital, Arrington XRP Capital, IOSG Ventures, and Libertus Capital.
Development Milestones:
- August 2018: Formation of NEAR Protocol: Conceptualization and initial development phase.
- April 2020: Mainnet Phase 0 (Proof-of-Authority Genesis): Initial Mainnet launch with a Proof-of-Authority mechanism managed by the NEAR Foundation.
- September 2020: Mainnet Phase 1 (Restricted): Allowed third-party validators to participate in network operations.
- October 2020: Mainnet Phase 2 (Community Governed): Enabled community governance through on-chain actions, allowing user token transfers and transactions.
- April 2021: Rainbow Bridge Launch: Established interoperability between NEAR and the Ethereum network.
- September 2021: Simple Nightshade Implementation: A significant step towards full sharding.
- November 2021: Nightshade Sharding Implementation: Further advancement in implementing full sharding capabilities.
NEAR Ecosystem Highlights
NEAR Foundation’s fundraising success is notable, securing $35 million in two disclosed rounds and one undisclosed round before 2021, attracting prominent investors like Coinbase Ventures, a16z, and others. In early January 2022, a $150 million investment round included participation from Three Arrows Capital, Jump Capital, and more.
Currently, NEAR boasts impressive transaction speeds and low fees, averaging $0.10 compared to other networks. Its full EVM compatibility facilitates seamless dApp migration from Ethereum via Aurora.
Current Status and Roadmap
With its network infrastructure largely established, NEAR is actively fostering its DeFi ecosystem. Layer-2 solutions like Aurora and Octopus Network are attracting developers and users.
While NEAR’s DeFi ecosystem is still nascent, Aurora’s rapid application growth (due to easy forking from other EVM-compatible chains) led to a Total Value Locked (TVL) exceeding $700 million in January 2022.
Key Components of the NEAR Ecosystem
Stablecoins
NEAR supports major stablecoins like USDT, USDC, DAI, and TUSD, primarily on Aurora, totaling around $400 million in January 2022. Oin Finance’s nUSDO, a stablecoin collateralized by stNEAR, is also present but with limited adoption.
Automated Market Maker Decentralized Exchanges (AMM DEXs)
Ref Finance is the primary AMM DEX on NEAR Protocol. Aurora hosts several DEXs, including Trisolaris (leading with over $500 million TVL in January 2022), Wannaswap, and Auroraswap.
Oracles
While Band Protocol and Chainlink have partnered with NEAR, active oracle solutions are yet to be launched. Flux Protocol serves the Flux prediction market but its broader oracle service availability remains unclear.
Lending & Borrowing
Oin Finance is the pioneer in this crucial DeFi segment on NEAR. Anticipated launches include Burrow Cash (on NEAR) and Aurigami (on Aurora), promising to enhance capital efficiency and drive TVL growth.
Initial DEX Offering (IDO) Platforms
Several launchpads operate within the NEAR ecosystem, with varying ROI performance. As the ecosystem matures, IDOs are expected to play a crucial role in new project launches.
NFT Marketplaces
NEAR boasts a vibrant NFT scene, led by Paras and Mintbase. While predominantly focused on collectibles, the future of interactive NFTs on NEAR holds significant potential.
Future Outlook and Investment Opportunities
Future Projections for NEAR
NEAR’s focus on building fundamental DeFi components, particularly lending protocols, will pave the way for more complex applications. Key developments to watch include the launch of lending protocols, innovative farming models, and continued attraction of developers. Factors that could further catalyze growth include increased CEX support, native stablecoin issuance, a Coinbase listing, significant investments in ecosystem projects, and the emergence of high-APY dApps.
Investment Opportunities in the NEAR Ecosystem
Current investment opportunities include holding NEAR tokens, participating in IDOs of promising projects, and engaging in farming and staking activities within the ecosystem.
Investment Thesis for the NEAR Ecosystem
While Aurora currently attracts significant capital, the long-term vision is to drive this flow towards the NEAR mainnet. Investing in leading NEAR projects like Ref Finance may offer strategic opportunities as this shift occurs. However, this represents a personal perspective and not financial advice. Thorough research and independent decision-making are crucial.
