Near Protocol(NEAR)/USDT Price Prediction: 22 January 2022

Overview

Ever since blockchain forecasted its importance and the fact that it is the future technology, many blockchains entered the space with improved features, addressing some of the other issues. Near Protocol is a smart-contract based blockchain platform mainly designed for developers to create & launch Decentralized applications or DApps. To do so, Near features a unique scaling solution known as Nightshade and a very strong consensus mechanism called Doomslug. 

The native token of the protocol NEAR works for the maintenance, funding for the platform and also acts as a governance token. Having made its presence very strong since its inception, NEAR price is currently experiencing a drain, mainly due to the extreme market conditions nowadays. Yet the possibility of a strong recovery has not completely vanished as despite Bitcoin & Ethereum still painted in red, the NEAR price has initiated a recovery. 

Will the NEAR price regain its levels beyond the current ATH? If yes will it be before the end of January 2022? Let’s check it out!

Introduction to Near Protocol-In Brief!

Near Protocol is a smart-contract based decentralized platform that offers a platform that addresses the limitations of the competing ecosystems like low throughput, low speeds and poor compatibility. Founded by Alex Skidanov and Illia Polosukhin, the protocol intends to incentivize the nodes which in turn creates a platform for developers to create & launch decentralized applications. 

The core of the protocol is the process of sharding which fragments the network into several segments. This would require the nodes to just handle only a fraction of the network’s transactions without downloading the entire blockchain. The platform works more or less with the other centralized data storage systems, which offers a base layer on which the applications are built.

The protocol raised more than $20 million over various funding rounds from leading venture capital firms like Andreessen Horowitz and Pantera Capital. Nearly 35% of the initial supply that comes around 41 billion NEAR tokens were sold to the early investors. 

Additional Read: Daily Crypto News 22 January, 2022 

How Near Protocol Works?

Near Protocol works as a base-layer much similar to Ethereum or Cardano upon which many other applications can be built and deployed. It works using the same consensus mechanism which Ethereum, Cardano, etc use, the Proof-of-Stake, but with some additional features. The main components for the smooth running of the Near Protocol are mentioned below:-

• NightShade

It is mainly built to simplify the work for the developers so that they build powerful, next-gen applications. Nightshade is used to achieve massive throughput capabilities using the sharding architecture. Here each participant or the node can store a small subset of data called ‘Chunks’ instead of downloading the entire blockchain. Once the data is processed, the information is added to the main chain. This reduced the possibilities of failures concerning security. 

• Rainbow Bridge

The Near Protocol uses the Rainbow Bridge to establish a secure connection with the Ethereum blockchain. The tokens can be swapped to and fro in between Near and Ethereum. The swapping is done through a smart contract and hence can be reversed when the user wishes to do so. As the original tokens are locked on a platform and an equivalent token is created on the other. 

• Aurora

Aurora is a cross-chain bridge that enables the Ethereum developers to deploy their ETH based applications on Near Protocol. It is designed to be compatible with the Ethereum Virtual Machine(EVM). Here the developers get a chance to extract the advantages of both the platforms into their applications, familiarity & network of applications on Ethereum and low fees with high throughput on Near. 

Additional Read: NEAR Protocol Technical Analysis 

Will NEAR Price Hit $100 in 2022?

NEAR, the native and governance token remained pretty much active since its inception in 2020. During the bull run in the first half of 2021, the asset received its first-ever boost which incurred a gain of more than 400% but before it reached a 2-digit figure, the market collapsed in May. Yet despite the asset draining all its gains, it went on to ignite the second phase of the bull run which began at $1.5 and remained unstoppable until NEAR Price smashed its ATH at $20.5, recently in 2022. 

Woefully, ever since then the asset is draining, trying hard to sustain at the important support levels. The rally appears to have been dominated by the bear currently and no strong trend reversal may be expected with the price shortly. Moreover, the most dominant asset, Bitcoin is expected to visit the lower strong support levels soon and hence this may impact the other altcoins as well. Therefore, until and unless the dominant cryptos like Bitcoin or Ethereum settle at some levels, we cannot expect stability with the other altcoins like NEAR. 

However, on the contrary, the downtrend is programmed to end at a certain point. As the asset hits the high demand area where the liquidity rate is pretty high, the asset tends to reverse the trend due to a huge influx of buying volume. This area for the NEAR price is around $10 and hence if the downtrend continues, a strong flip may be expected at these levels. Nevertheless, considering the current market condition, a bull run appears to be at a little distance, yet inevitable. Therefore, if the bull run ignites in the mid or by the end of Q1 2022, one can expect the target levels at $50 in the first half of 2022.  

Factors Impacting NEAR Price Today

The Protocol is Open-Sourced!

Similar to Bitcoin, the source code for Near Protocol is open-sourced and hence anyone can join and contribute towards the betterment of the network

Developer-Friendly

Near Protocol is designed to be more developer-friendly so that they deliver the required data within a highly secured environment at a greater speed. Near claims the speed of having 100,000 TPS. 

Near’s Chunk Shrading

The chunk shrading technique is considered as the most innovative way to get maximum throughput as validators need not work on the entire blockchain which reduces the hardware requirements. And hence even the clients may use a lite version of hardware like mobile phones to contribute towards the development of the platform. 

Fee-Burn Mechanism

Much similar to Ethereum’s & recently launched Polygon’s fee burning mechanism, Near Protocol also burns the fees to maintain an annual inflation rate of 5%. And hence increasing the value of the existing tokens

Near-Ethereum Secured Bridge

Near has built a couple of bridges that are compatible to run on Ethereum Virtual Machines. These bridges are not only useful for the users to swap their tokens but also for the developers who can deploy their ETH-based applications on Near and vice-versa.

Where & How to buy Near Protocol(NEAR)

Now if you have made up your mind to buy a NEAR token, then CoinDCX is the best place for any crypto-deals. CoinDCX started its journey when the dark clouds of a ‘blanket-ban’ were hovering over the platform, and now we are India’s leading & most trusted cryptocurrency exchange and also the country’s first crypto Unicorn. 

Registering here is very simple! Just download the CoinDCX App on your smartphone and register with the details mentioned. And done!! Once your bank details are verified, you become a proud customer of CoinDCX. Now just fund your wallet and start trading!!!

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