The Layer 1 (L1) battle is heating up again, with token values rising across multiple protocols in recent weeks as traders venture into life beyond Ethereum (Ethereum) The internet.
One L1 protocol whose token price climbed to an all-time high this week is NEAR, a community-run cloud computing platform focused on interoperability and lightning-fast transaction speeds.
Three reasons for NEAR’s growing strength include the successful completion of a $150 million funding round, the success of Aurora’s cross-chain bridging protocol, and the growing ecosystem of projects and developers working on the NEAR network.
NEAR raises $150 million
The latest price surge comes after announcing that the team had successfully closed its latest funding round, raising $150 million from various investors including Dragonfly Capital, a16z, Alameda, and Circle Ventures.
— NEAR Blockchain (@NEAR_Blockchain) January 13, 2022
NEAR plans to use the funds raised to accelerate the adoption of Web3 technologies through ecosystem funding, develop regional hubs for the NEAR community to help raise awareness of the brand, and provide support for projects based on the protocol.
In addition to the communities it has built in Asia, Africa and Europe, NEAR also wants to expand its reach into Latin America, Turkey and India.
Aurora Cross-Chain Bridge
The second factor behind NEAR’s rise over the past month is the successful launch of the Aurora protocol. Built on NEAR, the platform helps users and DApps running on the Ethereum network connect to the NEAR protocol.
Aurora leveraged the Rainbow Bridge to facilitate the migration of assets between supported networks and quickly became a popular cross-chain transfer protocol with a total locked value of over $732 million, according to Data from Defi Llama.
The number of daily transactions on the NEAR network hit a new high of 721,061 transactions on Jan.
A third development that will help increase the value of the NEAR ecosystem is the development of its developer community. The number of projects launched or connected to the NEAR network has increased over the past two months.
Developer #near Get 30% of txns fees spent on contracts! – maybe one of the many reasons why MAD is on @NEARProtocol is growing rapidly and has grown more than 4x in 1 year!
Top 3 Fastest Growing Development Ecosystems pic.twitter.com/UCe9jYVRcG
— Near Week Ⓝ (@NEARWEEK) January 11, 2022
As you can see from the tweet above, NEAR now has the third fastest growing developer community in the entire cryptocurrency ecosystem, in part because developers on NEAR receive 30% of contract transaction fees. This provides revenue for developers in areas where compensation is not always guaranteed.
an ever-expanding developer community, combine With the release of the cross-chain bridge, the NEAR ecosystem continues to expand and attract new projects.
VOLTECS™ data from Cointelegraph Market Pro A bullish outlook for NEAR began to be detected on January 9, ahead of the recent price increase.
Cointelegraph’s exclusive VORTECS™ score is an algorithmic comparison of historical and current market conditions, derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As you can see in the chart above, NEAR’s VORTECS™ score climbed into the green zone on January 9 and reached a high of 75 about an hour before prices began to rise 52% over the next four days.
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