NEAR, the native cryptocurrency of Near Protocol, has surged by 57% from its September 6, 2024, low of $3.41.
At present NEAR is trading at $5.22 NEAR/USDT at Gate.io, after losing by 0.5% within the last 24 hours.
On September 24, it reached an eight-week high of $5.36 before retracing towards $5.20 a strong support flow.
Several factors that include increasing open interest, TVL (total value locked) and the protocol’s implementation of blockchain sharding have contributed to its current bullish momentum.
Near Blockchain implements sharding
Near protocol, a cloud computing platform, has introduced sharding on its network to increase scalability and security without negatively affecting decentralization.
As the image shows, on X, Justin Bons announced the implementation of sharding on the NEAR Protocol.
The protocol completed the NEAR 2.0 update on August 12, thereby launching its sharding.
As of right now, Near protocol has become the second blockchain after Elrond to introduce sharding.
Basically, sharding enables the network to split its workload across many node groups. That process helps it to achieve scalability and enhances its security.
The implementation of sharding has made Near protocol an alternative to the Ethereum blockchain for DApps (decentralized applications). This is because it is now faster and more cost-effective than before.
Therefore, as the demand for DApps increases, Near Protocol will grow accordingly.
Partnership between Nvidia and Alibaba Cloud
The partnership between Nvidia and Alibaba Cloud resulted in a bullish momentum for AI-themed crypto tokens such as NEAR.
Data on CoinGecko shows that the AI tokens increased by about 5.9% after the partnership of the two giants in the sector. The cumulative market capitalization of AI tokens is around $28.9 billion.
The following table shows the performance of the top five AI tokens in the cited period according to CoinGecko.
As you observe in the table, NEAR was one of the biggest gainers following the Nvidia and Alibaba Cloud alliance.
The NEAR price rose by 9.3% within the 24-hour period following the announcement of the partnership.
Artificial Superintelligence Alliance (FET) gained by 5% while Bittensor (TAO) rallied by 18%.
At the moment FET is trading at $1.67 FET/USDT. However, its value has fallen by 1.3% within the last 24 hours.
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