NEAR continued to advance despite a 2% market decline Today. According to CoinGeckoNEAR, the platform’s native token, has seen gains of nearly 23% since last week. This is largely due to positive on-chain developments, showing that the altcoin has enough power to remain in its current market position.
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Just recently, NEAR announced that Nightshade 2.0, NEAR’s touted “new partitioning design,” has been deployed on the platform’s mainnet, improving upon the already robust and reliable system that users have enjoyed for years.
Nightshade 2.0 brings new light to validators
According to a recent blog postThe network upgrade brought stateless validation, the new sharding architecture for the protocol. This new architecture improved the performance of the single-shard network. NEAR already has six shards deployed on the network with a goal of ten by the end of the year.
It also reduces the hardware requirements to become a validator. Nightshade 2.0 improved the validator experience by omitting the need to track all NEAR shards, thereby driving growth on the validator side of crypto.
“In particular, the new sharding implementation paves the way for a significant increase in the coin’s already fast transaction throughput,” said Bowen Wang, protocol lead at NEAR One.
According to Illia Polosukhin, co-founder of NEAR Protocol and CEO of the NEAR Foundation, the network upgrade addresses “the fundamental bottleneck problem on most L1s: how to scale while preserving both usability and security.”
Rejection candles form, marking the start of the NEAR correction phase
With the market slipping on today’s trading activity, NEAR is currently trading on a red candle as the token is being rejected by the $5.2 ceiling, flipping the momentum in favor of the bears in the short term. This will make losses inevitable in the short term.
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With the market falling and turning the trend in favor of the bears, this will continue to affect the crypto’s performance if the downtrend continues. However, the recent developments in NEAR could slow down the fear, uncertainty, and doubt as the recent development contributes to the network’s growth in the long run.
Once the Nightshade effect matures, NEAR will have a solid foundation on which to build investor confidence.
Currently, NEAR has two possible paths it could take in the medium term. If the market rebounds from the current decline, it has the potential to break above $5.7 in the coming weeks. However, if the decline continues to worsen day by day, NEAR could return to $3.8, with the worst-case scenario being $3.0 if things get worse.
For now, investors should be cautious in monitoring the broader market movement as any variation may affect the altcoin’s performance.
Featured image by Rebank, chart by TradingView
