Despite the negative sentiment in the cryptocurrency market, NEAR, the Near Protocol coin, has seen slight growth over the past few days.
May has hit the overall cryptocurrency market hard. Since the weekend of May 7, major coins such as Bitcoin and Ethereum have suffered a deep decline, which has dragged down most altcoins.
This fall has become widespread after one of the worst Aprils in history, in which Losses of over 15% on the Bitcoin/USD pair, according to Coinglass data.
According to this information, April had the Stronger average departures in 2022 and the first week of May ended with the biggest outflow in a week since mid-January, with nearly $134 million lost.
This trend of outflows from investment products, led by Bitcoin, has caused negative sentiment to flood the market. Furthermore, it is very likely that this feeling of discouragement will extend throughout the month of May, so we could see even greater falls.
However, amidst this widespread decline in cryptocurrency prices and investment markets, NEAR, the native token of Near Protocol, appears to be holding steady, even growing slightly.
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Despite maintaining a loss of 2,21% in the last 7 days, the token closed yesterday with gains of 6,15% in 24 hoursOver the past 24 hours, NEAR traded at $11,22, before correcting and falling to $10,19 (at the time of writing).
What is Near Protocol?
Near Protocol is a public layer-one blockchain designed to solve one of Ethereum's main problems: the ScalabilityTo do this, Near uses a fragmentation (sharding) system known as Nightshade, which prevents the slowdown of transactions.
By splitting the database into shards, the data becomes more manageable. In this way, the nodes are also split and focus only on their blocks.
On the other hand, thanks to fragmentation, the blockchain requires much less computing power to function properly.
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What is Near Protocol used for?
One of the main utilities of Near Protocol is the decentralized application developmentThe blockchain has a set of tools, such as Gitpod, designed to facilitate the work of developers who intend to create their DApps on the platform.
Gitpod helps speed up the onboarding process for new developers by providing an integrated online environment that enables developers to easily write, test, and deploy smart contracts from any browser.
At the same time, NEAR includes a series of templates to make the process of creating decentralized applications as simple as possible.
Why has the price risen in the midst of the market crisis?
Despite being a relatively young protocol (it was created in 2020), it has a large adoption among developers, which has allowed its native token to develop strongly.
In fact, in the last 30 days, transactions with the native token have increased by 140%, thanks to a user base that has grown by 60% in the same time. These indicators could explain why the token remains on the rise in such a difficult time.
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