NEAR Protocol: Q3 2024 Deep Dive and Ecosystem Updates
Throughout the year, we’ve explored protocols like Solana, Base, and now NEAR, and a clear theme has emerged—their success in driving adoption lies in removing barriers such as fees, latency, and security challenges. Despite operating on different principles, these ecosystems share a common priority: reducing friction for users. Today, we turn our focus to NEAR Protocol to see how it delivers on this goal and positioning itself as a serious contender in the race for users in the years ahead.
NEAR Protocol continues to redefine the standards for blockchain usability, scalability, and innovation. As one of the leading Layer-1 blockchain, NEAR’s mission is to abstract away blockchain complexities, enabling seamless interactions for developers and users alike. With advancements like Nightshade 2.0, Chain Signatures, and a user-centric approach to AI integration, NEAR is positioning itself as a technology powerhouse. Let’s dive into the major updates and developments from 2024.
1. Strategic Vision and Technological Innovations
Nightshade 2.0 The launch of Nightshade 2.0 uses data management to boost transaction speeds, reducing gas fees for storage, and introducing dynamic resharding to automatically balance network resources as needed. They’ll also work on making the system less reliant on centralized services, prioritizing important transactions during busy times, and exploring advanced improvements like better performance, leaderless consensus, and scalable smart contracts. These upgrades aim to make NEAR even more efficient, adaptable, and ready for future growth.
Chain Signatures By removing the need for traditional bridges, Chain Signatures simplifies multichain interactions. Launched in August 2024, this innovation uses decentralized multi-party computation (MPC) to connect NEAR accounts and smart contracts directly with blockchains like Bitcoin, Ethereum, and Dogecoin. Projects like Sweat Wallet and Allstake are already leveraging Chain Signatures to enable seamless cross-chain interactions.
2. Ecosystem Growth and Vibrancy
NEAR’s ecosystem continues to expand at an impressive pace, fueled by consumer applications, DeFi protocols, and AI-driven innovation.
Consumer Applications
NEAR is capturing atypical crypto users by focusing on social and gaming applications. This approach drives demand from Web2 users, reducing friction from traditional users.
- KAIKAI.ai: With ~19 million unique active wallets in just 30 days, KAIKAI.ai is a shining example of NEAR’s ability to onboard mainstream users.
- Sweat Economy: Boasting ~14 million Sweat Wallets, this fitness-focused app demonstrates how NEAR is driving adoption through gamified, real-world use cases.
- DapDap: As another consumer-driven app, DapDap highlights NEAR’s potential to support user-friendly, mainstream blockchain adoption.
DeFi Expansion
NEAR’s DeFi ecosystem saw steady growth in Q3 2024, with Total Value Locked (TVL) reaching ~$251.44 million. Key contributors include:
- Burrow: The leading protocol by TVL (~$178.47 million), reflecting a ~13.69% QoQ increase.
- Ref Finance: Continue to be the flagship DEX to drive liquidity and boasts the highest volume ($6.45 million).
- Allstake: This omnichain restaking protocol launched in mid-2024 and quickly gained traction, ending the quarter with ~$18.49 million in TVL.
Real-World Applications
Projects like Libre and Open Forest Protocol are leveraging NEAR’s infrastructure to tokenize real-world assets and bring environmental impact data on-chain. These initiatives showcase NEAR’s versatility and commitment to broadening blockchain use cases.
3. AI Innovation: Leading the User-Owned AI Movement
NEAR is at the forefront of integrating AI with blockchain, focusing on User-Owned AI to empower users and democratize AI development. In Q3 2024, NEAR made significant strides in this area:
- AI Accelerator Programs: In collaboration with Delphi Labs and Betaworks, NEAR launched accelerator programs to foster AI-driven solutions.
- Bitte.ai: A standout project, Bitte.ai allows users to execute on-chain tasks with natural language commands, showcasing the potential of AI-powered blockchain interactions.
- Nillion Partnership: This collaboration introduced advanced “blind compute” and secure storage capabilities, further enhancing NEAR’s AI infrastructure.
NEAR’s commitment to AI is reflected in its growing ecosystem, with over 50 teams building at every layer of the User-Owned AI stack. Notably, NEAR has become a key component of
4. Developer Ecosystem
NEAR continues to prioritize community-driven governance and robust developer support to ensure long-term sustainability and growth. Having a developer-centric approach continues to attract talent through:
- Fee-Sharing Model: Allocating 30% of transaction fees to smart contract creators.
- Comprehensive Tools: SDKs, sandbox environments, and the NEAR CLI make it easier for developers to build on NEAR.
- Interoperability: The launch of TokenBridge, connecting NEAR to Solana, underscores NEAR’s commitment to cross-chain collaboration.
The NEAR Dev Hub serves as a central repository for knowledge and collaboration, fostering innovation and driving ecosystem growth.
5. Risk and Opportunity
Key risks to NEAR’s growth include potential dilution of focus due to its broad protocol scope, challenges in developer onboarding with its unique tech stack, and difficulties in user acquisition and retention. However, NEAR addresses these risks through strategic mitigants: targeted partnerships to refine its value proposition, initiatives like hackathons and EVM compatibility to attract developers, and wallet features with engagement incentives to cultivate a more active and diverse user base. Additionally, the ecosystem’s growth across use cases—spanning DeFi, memecoins, Ordinals, and user-friendly apps—helps reduce reliance on a few dApps, driving broader adoption and network activity.
Closing Summary
Q3 2024 was a transformative quarter for NEAR Protocol. From the launch of Nightshade 2.0 to groundbreaking advancements in Chain Signatures and User-Owned AI, NEAR demonstrated its commitment to innovation and scalability. The ecosystem continues to thrive, driven by consumer-focused applications, DeFi growth, and AI-driven projects. Meanwhile, its robust developer support and expanding interoperability ensure NEAR remains to be one of the top choices for blockchain builders.
The OAX Foundation has been a dedicated supporter of various blockchain ecosystems since 2017. Our mission remains to collaborate with emerging technologies and projects that push the boundaries of innovation, helping to pave the way for crypto adoption on a global scale. As the market begins to rebound and protocols once again capture the spotlight, we’ve taken the opportunity to highlight key players shaping the future of the space.
Disclaimer: The above is an opinion piece written by an authorized author, but in no way represents the official standpoint of OAX Foundation Limited, nor should it be meant to serve as investment advice.
