3 reasons why Near Protocol (NEAR) just hit a new all-time high

The L1 battle is heating up again and multiple protocols have seen their token values ​​soar in recent weeks as traders venture to see what life is like outside the Ethereum (ETH) network.

One of the L1 protocols that saw its token price soar to an all-time high this week was NEAR, a community-run cloud computing platform that focuses on interoperability and fast transaction speed.

Data from Cointelegraph Markets Pro and TradingView shows that after pulling back as low as $13.10 on January 9, NEAR price surged more than 50% to hit a new record high of $20.36 on January 14.

The 4-hour chart is close to /USDT. Source: TradingView

Three reasons that have contributed to the growing strength of NEAR include the successful completion of a $150 million funding round, the success of the cross-chain Aurora Bridge Protocol and the expanding ecosystem of projects and developers working on the NEAR network.

NEAR raises $150 million in funding round

The latest price hike followed the announcement that the team had successfully completed its latest funding round, raising $150 million from a diverse group of investors including Dragonfly Capital, a16z, Alameda and Circle Ventures.

NEAR plans to use the funds raised to accelerate adoption of Web3 technologies via ecosystem funding, the development of regional hubs for the NEAR community to help increase brand awareness and by providing support for projects built on the protocol.

In addition to established communities in Asia, Africa and Europe, NEAR is also looking to expand its reach into Latin America, Turkey and India.

Aurora Cross Bridge

The second factor behind the emergence of NEAR over the past month has been the successful launch of the Aurora protocol. This platform is built on NEAR and helps users and decentralized applications that bridge the Ethereum network to the NEAR protocol.

Aurora uses a rainbow bridge to facilitate asset migration between supported networks, and it’s quickly becoming a popular protocol for cross-chain transfers with more than $732 million in total value locked out, according to data from Devi Lama.

As a result of the increased activity resulting from the increased adoption of projects in NEAR and the migration of tokens from Ethereum, the number of daily transactions on the NEAR network created a new record of 72,061 transactions on January 11th.

The number of daily transactions in NEAR. Source: NEAR

Related: What Layer 1 protocols will outperform in 2022?

Expanding the ecosystem

A third development that helps enhance the value of the NEAR ecosystem is the growth of its developer community. There has been an increase in the number of projects launched or connected to the NEAR network over the past two months.

As indicated in the above tweet, NEAR now has the third fastest growing developer community across the entire crypto ecosystem, thanks in part to the fact that developers at NEAR receive 30% of transaction fees spent on their contract. This provides income for developers in an area where compensation is not always guaranteed.

The expanding community of developers, sum With the launch of the Cross Bridge, it has led to the expansion of the NEAR ecosystem that continues to grow and attract new projects.

Projects in the NEAR ecosystem. Source: NEAR Mates

VORTECS™ data from Cointelegraph Markets Pro began detecting a bullish outlook for NEAR on January 9, ahead of the recent price rally.

The VORTECS™ result, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions drawn from a range of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ result (in green) vs. near price. source: Cointelegraph Markets Pro

As shown in the chart above, the VORTECS™ result for NEAR climbed into the green on January 9 and recorded a high of 75 around one hour before the price started to rise 52% over the next four days.

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