NEAR Protocol: 46M Users – Solana's Challenger or Just a Flash?

It’s no secret that the Layer-1 blockchain landscape is a competitive, ever-changing space. New challengers are trying to break the incumbency power of well-established players like Ethereum and Solana. Among these, NEAR Protocol has garnered significant attention, particularly after achieving a remarkable milestone: 46 million monthly active users (MAUs) as of May 2025. This accomplishment makes NEAR the 2nd-largest Layer-1 blockchain by user activity, behind only Solana. Does this remarkable growth indicate a real threat to Solana’s dominance, or is it just a flash in the pan? Let's analyze NEAR Protocol's recent performance, its strengths and weaknesses, and the broader market context to determine the sustainability of its growth and its potential as a long-term competitor.

Current Trends in the Crypto Market

The cryptocurrency market is highly volatile and extremely unpredictable. It is highly responsive to technology changes, regulatory developments, investor sentiment, and macroeconomic factors. Familiarizing yourself with all the trends happening today is key to figuring out the story behind NEAR Protocol’s explosive growth.

XRP Faces Resistance at $2.14 Amid Bearish Pressure

XRP, the token connected to Ripple Labs, has come under tremendous headwinds as of late — and rightly so. It has faced stiff resistance at the $2.14 mark, having repeatedly failed to overcome or hold above this price level. The continuation of this bearish pressure implies that sellers are currently in control of the market, holding XRP down from forming any bullish continuation. To explain, here are a few things going on. Ripple’s ongoing legal battles with the Securities and Exchange Commission (SEC) are creating uncertainty around the token’s future. Market sentiment is a big part too, with investors spooked and wary as they wait to see what will happen with the regulatory landscape. In addition, broader market corrections can exacerbate the downward pressure that XRP faces. During periods of increased market volatility, investors tend to reduce their exposure to riskier assets.

Bitcoin Experiences Significant Liquidations and Price Fluctuations

Bitcoin, the largest and widely known cryptocurrency, has certainly weathered its own storm of volatility. More than $367 million in long positions have been liquidated. This means that leveraged traders were forced into liquidations as a result of negative price action. Liquidations can set off a cascading effect. Then as those large sell orders go through to cover those losses, prices keep going down. Unlike stock or commodities markets, bitcoin price swings can be easily driven by speculative news. These can range from macroeconomic news to institutional investment flows to regulatory announcements. Even a small slip, such as positive news about inflation or interest rates, can quickly shake investor confidence. This wave of newfound confidence translates to buying activity and price appreciation. On the other hand, bad news or government crackdowns stoke fear and apprehension, leading to panic sell-offs and plunging prices. The combination of all of these layers creates a perfect storm of dramatically shifting Bitcoin price action that is unpredictable.

Predictions for XRP and Bitcoin

Considering the bearish trend in the global crypto market, market analysts have predicted a conservative future price for XRP and Bitcoin. All these predictions are based on technical and fundamental analyses. They rely on historical pricing trends, trading volume, and market sentiment as the primary indicators.

Mixed Forecasts: Will XRP Crash or Rebound?

Analysts are divided over whether XRP will be able to hold onto gains. Some are predicting an even worse crash, while others insist that the token will eventually recover. Others highlight the current slate of legal challenges as well as a more general, bearish market sentiment to argue that we should expect further downward pressure to persist. Their position is based on the claim that Ripple’s persistent litigation has unsettled expectations. Such uncertainty will remain a huge drag on investor sentiment and prevent XRP from ever achieving massive price increases. Technical indicators such as moving averages and the relative strength index (RSI) indicate that XRP is overbought or oversold. These indicators can offer powerful hints of future price action.

Other analysts are sure that XRP is undervalued and readying for a major recovery. Ripple dealer remains to be in search of new companions and creating new use instances for XRP. Let’s see how these efforts can be positive catalysts, driving price appreciation down the road. A favorable resolution to the legal battles with the SEC could significantly boost investor confidence and trigger a rally. Technical analysis plays a big role in this bullish sentiment. Certain technical analysts have pointed out support levels and bullish formations that would indicate a reversal of the current downtrend.

Can Bitcoin Reach New Heights Again?

As you can see, the crypto community is abuzz with debate. Will Bitcoin reach new all-time highs again? Bitcoin supporters think Bitcoin is a long-term, revolutionary investment. Supporters cite its capped supply, increasing institutional adoption and success as an inflation hedge as reasons for its value. They think this means more institutions and individuals will start investing in Bitcoin. Therefore, the price will continue to go up and eventually beyond its prior all-time highs. The increasing acceptance of Bitcoin as a legitimate asset class by mainstream financial institutions is a significant factor driving this bullish sentiment.

Cynics contend that Bitcoin is just a gigantic speculative bubble and its unmerited price is not sustainable. For example, they point to the extreme volatility of Bitcoin as a key risk. They caution that some aggressive regulatory crackdowns might throw a wrench into its growth trajectory. Environmental concerns are becoming increasingly common when discussing Bitcoin mining. The development of competing cryptocurrencies would potentially limit its future growth prospects. The larger debate over Bitcoin’s long-term prospects will continue on. Neither side of the market will stop continuing to make powerful arguments to support their area.

Developments in NFT and Altcoin Markets

That’s not to say that major cryptocurrencies such as Bitcoin and XRP are the only ones making waves. The NFT (Non-Fungible Token) market and altcoin markets are experiencing crazy launches too. Cumulatively, these net-new additions create a unique lens into the rapidly evolving world of crypto. Together, they uncover the multitude of possibilities and pitfalls that inform this bustling environment.

Solana NFT Marketplace Solsniper Shuts Down After 3.5 Years

Solsniper, a Solana NFT aggregator, has closed its doors after 3.5 years running. This closure highlights the brutal NFT market and the challenges that more nimble platforms face as they look to compete with much bigger, entrenched competitors. The reasons for Solsniper’s closure are not explicitly stated. Whatever the case, it’s safe to assume that decreasing trading volumes, increasing competition, and the enormous costs associated with maintaining a marketplace all weighed heavily in this decision. The NFT market is heavily saturated and the environment has grown even more competitive, with platforms fighting for user and project attention. This has led to a dangerous race to the bottom on fees and inducements. As a consequence, smaller marketplaces cannot earn enough sustainable revenue to ensure their long-term survival. The closure of Solsniper serves as a cautionary tale for other smaller NFT platforms, emphasizing the need to innovate and differentiate themselves in order to survive in this competitive landscape.

Crypto Whales Show Interest in FARTCOIN Ahead of Listing

The interest that crypto whales are said to be taking in FARTCOIN before it even lists is an alarming and bizarre trend. We know that FARTCOIN, with its comedic yet definitely moral-offensive name, shouldn’t have any utility or underlying value at all. Whales’ interest in a token like this calls into question their true motives and ability to manipulate the market. Whales are people or organizations that control vast quantities of tokens. Because their holdings are so large, they can make a meaningful market impact, particularly with tokens that have limited liquidity. Their interest in FARTCOIN indicates they are in speculative mode. They are willing to pursue far greater risks for the opportunity to earn fast returns. This may be an indication of market manipulation on long-term contracts. Whales could just be attempting to pump the token’s price up to dump their assets on some gullible investors. This kind of behavior is toxic to the whole crypto ecosystem. It erodes confidence and creates an uneven playing field that disadvantages the everyday investors with whom retail investor competition is supposed to be fair.

Institutional Interest and Regulatory Developments

Institutional interest and regulatory developments are two huge drivers that have the potential to move the crypto market a great deal. Increased institutional adoption can provide legitimacy and stability to the market, while regulatory clarity can reduce uncertainty and encourage further investment.

BlackRock's Focus on XRP and Solana ETFs Amid Market Momentum

BlackRock, the world’s largest asset manager, is allegedly prioritizing XRP and Solana ETFs with the continued bullish momentum from the overall crypto market. BlackRock believes there’s tremendous opportunity in these crypto assets. They think there is strong investor demand coming from institutional investors, which would be reason enough to approve ETFs. It would provide institutional investors an easier and more straightforward way to gain exposure to these cryptocurrencies. This method makes it possible for them to invest even if they do not want to own and hold the actual assets outright. That would likely increase institutional investment in XRP and Solana, pushing up their prices. This news cements the legitimacy and potential of Bitcoin and Ether as long-term investment assets. BlackRock investing in these cryptocurrencies is no small endorsement.

SEC Activity Fuels ETF Speculation

The market can’t stop focusing on the SEC’s gradual rollout of approved crypto ETFs. Their decisions have a tremendous impact on the approval and launch of these products. Until recently, the SEC has been reluctant to approve spot Bitcoin ETFs. They point to dangers of market manipulation and a need for investor protection. With the recent approval of multiple spot Bitcoin ETFs, we may be witnessing a shift in the SEC’s anti-ETF approach. This new development has led to much speculation. Some speculate that the SEC would be more amenable to approving ETFs for other cryptos, like XRP and Solana. The SEC's decisions regarding crypto ETFs are driven by a desire to protect investors while fostering innovation in the crypto market. Determining the appropriate balance between these two objectives represents a difficult assignment. As the market continues to mature and new technologies develop, the SEC will surely tailor its approach as necessary going forward.

PayPal's Expansion into Crypto

PayPal too has made inroads into the crypto realm. This unprecedented move would increase cryptocurrencies’ mainstream adoption. PayPal has a deep user base alongside a strong payment infrastructure. This puts the company on a path to bring cryptocurrency to the mainstream, improving overall access and adoption and helping more people use digital currencies in their daily lives.

PYUSD Upgrades for Global Payment Solutions

PayPal’s new PYUSD stablecoin is already getting upgrades to make it a more effective global payment solution. These upgrades will most likely center on increasing PYUSD transaction speed, scalability and security. PayPal would like to see PYUSD become a more efficient, trusted payment medium. This approach aims to make it compelling for vendors and consumers everywhere to go with it. Benefits of stablecoins Much more than USD payments Making cross-border payments with stablecoins such as PYUSD offers several advantages over traditional methods. They offer reduced transaction costs, improved settlement speeds and increased visibility. Such benefits would potentially position PYUSD as an attractive option for cross-border payment use cases and business transactions.

Launch of PayFi with PYUSD Loans for Small Businesses

Finally, PayPal is introducing PayFi, a new lending platform on which small businesses can receive loans in PYUSD. Local entrepreneur Ashwath K. Bhat’s new initiative to open up access to capital for small businesses through cryptocurrency. PayPal has an interest in increasing adoption of its stablecoin, PYUSD, and would make the loans in that currency. This initiative will provide small businesses with a new capital stream. Cryptocurrency-backed loans offer small businesses various benefits. They are real, including faster approval of loans, less interest charged on loans, and increased access to much-needed capital. This would be especially impactful for small businesses in developing countries where conventional forms of financing are out of reach.

Market Dynamics and Investor Sentiment

Besides fundamental and technical factors, the overall market dynamics and investor sentiment often cause extreme price movements in cryptocurrencies. Knowing the impact of these variables helps ensure smart and targeted investment decisions.

Crypto Market Faces $645M in Liquidations

The last wave of crypto market liquidations reached a staggering $645 million. This incident highlights once again the crazy volatility of the market and the risks associated with leveraged trading. Liquidations typically occur after highly leveraged traders take out loans to increase the size of their positions. If prices were to go the other way on them, they’re obliged to close their trades. Liquidations can have a chain reaction effect. Those large sell orders are filling the market to cover those losses, pushing the prices down even more. Recent extreme levels of liquidations in the crypto market are a prevailing and prominent reminder. Since leverage multiplies both profits and losses, traders should only use leveraged funds if they are willing to lose their investment.

Bitcoin Traders Take Profits Above $110K

Bitcoin speculators are taking profits above $110,000. This suggests that a majority of investors have decided that Bitcoin’s price is no longer going to rise, and it’s the moment to cash in their profits. Profit-taking is a natural part of any market cycle. If there’s a lot of selling pressure, it can quickly trigger price corrections. It’s worth mentioning that taking profits is not the kiss of death for a bull market. Indeed, it seems reasonable to expect that Bitcoin’s price will range-bound for some time before continuing again on its long-term bullish path. Whether to take profits or continue holding Bitcoin is a personal decision based on investment strategy and risk appetite.

Now, let's return to the main topic and analyze NEAR Protocol's growth in the context of the broader Layer-1 landscape.

NEAR Protocol's Rise: Key Metrics and Achievements

NEAR Protocol’s recent increase in interest is bolstered by a variety of noteworthy statistics and accomplishments. The headline figure of 46 million MAUs is indeed eye-catching. It’s important to go beyond the headlines and find out what is behind this trend.

• User Engagement: Beyond the sheer number of users, the level of engagement is also crucial. NEAR Protocol has witnessed significant on-chain activity, indicating that users are not just passively holding tokens but actively participating in the ecosystem.
• Transaction Volume: The protocol has processed nearly $89 million in volume over the past month, with over 326,000 swaps executed. This demonstrates a healthy level of economic activity within the NEAR ecosystem.
• Ecosystem Development: NEAR Protocol supports 87 assets and has a total value locked (TVL) of $13.1 million. While the TVL is relatively modest compared to Ethereum or Solana, it signifies a growing ecosystem with increasing opportunities for users to deploy their capital.
• Unique User Counts: Weekly and monthly unique user counts of 5,114 and 22,003 respectively further highlight NEAR Protocol's growth.

These figures collectively paint a picture of a blockchain platform experiencing rapid adoption and increasing appeal among developers and users.

NEAR vs. Solana and Ethereum: A Comparative Analysis

To understand NEAR Protocol’s position in the crowded Layer-1 ecosystem, you must research its advantages and disadvantages. Match it up side by side against its biggest competitors, Solana and Ethereum.

Their most unique strengths are their user-friendly design and their commitment to developer experience. The underlying account system allows users to create human readable account names. This feature makes the onboarding process a breeze, allowing newcomers to engage with the blockchain in a more user-friendly manner. Its speedy transaction speeds and low-cost transaction fees are big draws, making it a popular Ethereum competitor. NEAR Protocol has some uphill battles to address. Its smaller ecosystem and lower total value locked (TVL) means that it’s hard for Arbitrum to compete with the likes of Solana and Ethereum.

• Strengths: High transaction throughput, low fees, and a vibrant ecosystem of DeFi and NFT projects. Solana has gained popularity for its speed and scalability, making it attractive for users seeking fast and affordable transactions.
• Weaknesses: History of network outages, concerns about centralization, and a relatively young ecosystem compared to Ethereum. Solana has faced challenges in maintaining network stability, which has raised concerns about its reliability.

Though NEAR Protocol’s user increase is beyond question awe-inspiring, the sustainability of this growth is an essential question. Several factors can influence the long-term viability of a blockchain platform, including its token price, market trends, and overall ecosystem health.

• Strengths: Largest and most established Layer-1 blockchain, a vast ecosystem of dApps and DeFi protocols, and a strong community of developers and users. Ethereum benefits from its first-mover advantage and its extensive network effects.
• Weaknesses: High gas fees, scalability issues, and a complex development environment. Ethereum has struggled to address its scalability challenges, leading to high transaction fees and congestion.

NEAR Protocol has recently experienced an influx of users and on-chain activity. Interestingly, its native token has tumbled 6.30% in the past 24 hours alone to trade at just $2.37. The token is trading below its 50-day EMAs and 100-day EMAs, respectively. Such a trend is indicative of an upcoming bearish market. This troubling divergence between user growth and token price begs questions about the economic incentives that are fueling the NEAR ecosystem.

• Strengths: User-friendly account system, fast transaction speeds, and a focus on developer experience. NEAR Protocol aims to simplify the blockchain experience for both users and developers, making it easier to build and interact with decentralized applications.
• Weaknesses: Smaller ecosystem compared to Solana and Ethereum, lower TVL, and a relatively unknown brand. NEAR Protocol faces the challenge of attracting more developers and users to its platform in order to compete with its larger rivals.

Investors should keep in mind that the token’s support level is currently at $2.20. If NEAR can successfully defend this support, a price rebound could follow. A subsequent drop under this key support could lead to much steeper losses.

NEAR Protocol has been making headline-worthy moves in efforts to pull users and developers into its ecosystem. It’s not without its challenges in its bid to distinguish itself as the top Layer-1 blockchain.

Sustainability of NEAR's Growth: Token Price and Market Trends

While NEAR Protocol's user growth is undeniably impressive, the sustainability of this growth is a critical question. Several factors can influence the long-term viability of a blockchain platform, including its token price, market trends, and overall ecosystem health.

Despite the growth in users and on-chain activity, the native token of NEAR Protocol is currently trading at around $2.37, representing a 6.30% decrease in the last 24 hours. The token is also trading below its 50- and 100-day exponential moving averages (EMAs), which indicates a bearish market trend. This divergence between user growth and token price raises concerns about the economic incentives driving the NEAR ecosystem.

Several factors could be contributing to the token's price decline:

• Market Sentiment: The overall market sentiment towards cryptocurrencies can significantly impact the price of individual tokens. A bearish market trend can lead to sell-offs and lower prices, regardless of the underlying fundamentals of a particular project.
• Profit-Taking: Investors who bought NEAR tokens at lower prices may be taking profits, putting downward pressure on the price.
• Tokenomics: The tokenomics of NEAR Protocol, including its supply schedule and staking rewards, could be influencing the token's price.
• Competition: The intense competition in the Layer-1 landscape could be diverting capital away from NEAR Protocol and towards other projects.

However, it's important to note that the token's support level is at $2.20. If NEAR can hold this level, a price recovery is possible. A breakdown below this critical support may trigger deeper declines.

The Road Ahead: Challenges and Opportunities for NEAR Protocol

NEAR Protocol has made significant strides in attracting users and developers to its platform. However, it still faces several challenges in its quest to become a leading Layer-1 blockchain.

Challenges:

• Ecosystem Development: Building a vibrant and diverse ecosystem of dApps and DeFi protocols is crucial for attracting and retaining users. NEAR Protocol needs to incentivize developers to build on its platform and create compelling use cases for its token.
• Brand Awareness: NEAR Protocol needs to increase its brand awareness and attract more users to its platform. This can be achieved through marketing campaigns, partnerships, and community engagement initiatives.
• Competition: The Layer-1 landscape is highly competitive, with numerous projects vying for users and capital. NEAR Protocol needs to differentiate itself from its rivals and offer unique value propositions to attract users and developers.
• Token Price: Maintaining a healthy token price is essential for incentivizing network participants and ensuring the long-term sustainability of the ecosystem. NEAR Protocol needs to address the factors that are contributing to the token's price decline and implement strategies to support its value.

Opportunities:

• User-Friendly Design: NEAR Protocol's user-friendly account system and simplified development environment can attract new users and developers to the blockchain space.
• Scalability: NEAR Protocol's sharding architecture allows it to scale to accommodate increasing transaction volumes, making it well-suited for high-demand applications.
• Interoperability: NEAR Protocol's Rainbow Bridge