NEAR Could Hit $10 Soon On Excitement Around Chain Abstraction

NEAR Protocol (NEAR) has been one of the best-performing cryptocurrencies in the past week.  NEAR is up by 23% in the last seven days. NEAR continues to impress investors, surging by an additional 10.56% today. Trading volumes are also rising, up 26% today, to $477.16 million.

The driving force behind NEAR’s meteoric rise lies in the positive reception of its innovative Chain Abstraction feature, a development poised to revolutionize blockchain technology by addressing the challenge of fragmentation. Last week, the NEAR Protocol team took to X to explain the concept of chain abstraction and its transformative potential.

Chain Abstraction As Explained By The Near Protocol Team

According to the NEAR team, how Web 3.0 is structured right now has led to fragmentation in liquidity across apps and, in the process, making Dapps impractical to users. From the tweet by NEAR Protocol, the way blockchain is set up right now is equivalent to a person using Gmail being unable to send a message to Outlook.

🚨Alpha alert!
It is time to dive into the world of chain abstraction and chain signatures on @NEARProtocol🚀

Join us as we explore why are these innovations important and how is NEAR positioned in this narrative👇https://t.co/PlXc5EntBf#Web3 #NEARProtocol #ChainAbstraction pic.twitter.com/b9thDc7ksh

— NEAR Balkans Hub ⋈ (@NEARbalkan) April 17, 2024

Through Chain abstraction, the NEAR Protocol aims to reduce fragmentation by using technologies like Zero-Knowledge (ZK) technology for settlements across networks. Among the tools that NEAR Protocol uses for Abstraction include ease of data access and decentralized sequencers.

🌟The Role of Chain Abstraction
Chain abstraction aims to mitigate fragmentation, leveraging innovations like Zero-Knowledge (ZK) technology for cross-settlement and mesh security.

— NEAR Balkans Hub ⋈ (@NEARbalkan) April 17, 2024

Impressive Real-world World Use Cases

According to the NEAR Protocol team, Chain abstraction, and chain signatures could lead to many real-world applications within the NEAR ecosystem. The use cases range from DeFi to NFTs. Already, the adoption of NEAR Protocol’s chain abstraction is taking shape.

DapDap Adopts NEAR Protocol Chain Abstraction 

Today, the NEAR Protocol team unveiled a significant milestone regarding Chain Abstraction adoption. They tweeted about DapDap, a universal gateway powered by NEAR Protocol. According to the NEAR team, DapDap represents one of the first platforms to implement on-chain web with NEAR JS, further showcasing the potential of chain abstraction in facilitating seamless interactions across blockchain networks.

Chain Abstraction 🤜🤛 @DapDapMeUp

Powered by @NEARProtocol, DapDap is one of the first universal gateways that successfully realises the vision of a truly on-chain web with NEAR JS.

Read all about their collaboration together w/ @Scroll_ZKP ecosystem below 📜⬇️ https://t.co/QVzwqHyOie

— NEAR Protocol (@NEARProtocol) April 22, 2024

NEAR Protocol AI Angle Also Exciting Markets

NEAR Protocol’s allure extends beyond its groundbreaking technological advancements. It has also captured investor attention as one of the leading cryptocurrencies at the intersection of blockchain and artificial intelligence (AI). With the AI narrative gaining traction in financial markets, cryptocurrencies integrating AI capabilities are expected to outperform the market, especially amid Bitcoin’s robust post-halving momentum.

The Future Looks Bright 

Investors closely monitor NEAR’s trajectory, eager to capitalize on its potential to drive the next wave of technological disruption in cryptocurrency. This is especially the case with its potential to make blockchain more user-friendly. 

In the section below, we look at NEAR Protocol’s price action to determine how it could trade for the remainder of the day and in the coming days. 

NEAR Protocol Approaches Key Level That Could Confirm Bull Trend

NEAR Protocol is in recovery after hitting a low of $4.307 ten days ago. The impressive recovery has been driven by a recovery across the broader market and news from NEAR, especially regarding Chain Abstraction. At the moment, NEAR is approaching a pivotal resistance level at $7.364. If bulls have enough momentum to push NEAR through the $7.364 resistance today, then prices above $10 could be hit in the coming days. 

However, if marketwide factors temper the rising bullish momentum, keeping an eye on the trading volumes would be essential. If buying volumes drop but sentiment remains bullish, NEAR could enter a consolidation period between $7.363 resistance and $5.188 support. 

On the other hand, if sentiment turns bearish and bears take control with high volumes, the critical level to watch would be the $5.188 support. If the $5.188 support is broken, then NEAR could quickly retest the April 13 low of $4.35 or lower in the short term.

Which Way For NEAR?

Markets are inherently unpredictable, but all indications are that NEAR will soon break the $7.364 resistance and test highs above $10. One strong indicator is the growing adoption of NEAR’s chain abstraction technology. Add to that the excitement around AI and NEAR being a top AI cryptocurrency, and it’s easy to see why buying volumes are likely to keep going up now that the broader market is increasingly bullish.