The Near token has seen a pullback for two consecutive days, coinciding with the recent Nightshade 2.0 launch on the mainnet and traders positioning for the upcoming Nvidia earnings. As of now, the Near Protocol (NEAR) has retreated to $4.83, down from last week’s high of $5.22. Despite this dip, it remains slightly above the 50-day moving average and 57% above its lowest point this month.

Near DeFi Inflows Surge

A detailed look into Near’s ecosystem reveals that most decentralized applications (dApps) within its Decentralized Finance (DeFi) ecosystem have experienced significant inflows over the past few weeks. For instance, Burrow, a lending marketplace comparable to AAVE, saw its inflows jump by 23% over the last seven days, reaching $160 million.

Similarly, liquid staking apps like Linear Protocol, Meta Pool, Here Wallet, and AllStake have reported inflows increasing by over 25% during the same period. Overall, the total value locked (TVL) in Near Protocol has surged to over $654 million, marking its highest level since July. In NEAR terms, the TVL has risen to 47.6 million.

Largest TVL Growth

The increase in TVL is primarily driven by the USDT, USDC, and FRAX markets. This rebound can be attributed to the recent launch of the Nightshade 2.0 upgrade, which introduced stateless validation and improved scalability through advanced sharding. Sharding slices blocks into smaller shards, enhancing network throughput and localizing congestion, so gas price increases do not affect the entire network. The developers aim to position Near as a preferred blockchain for launching decentralized applications.

“The leading protocol on NEAR Protocol has been gaining traction recently, with almost all of its protocols seeing over 20% growth.”

Nvidia Earnings Ahead

The Near token is also under the spotlight as traders anticipate Nvidia’s earnings, scheduled for August 28. These results are significant because Nvidia has emerged as a leading AI company, propelling its market cap to over $3 trillion. The earnings report will offer insights into whether the AI industry continues to grow. In its last financial results, Nvidia’s revenue surged by over 240% to $26 billion, surpassing its earnings for the entire fiscal year 2021. Analysts expect Nvidia’s quarterly revenues to exceed $28.7 billion, higher than the $26.9 billion recorded in 2022.

Near Protocol has positioned itself as a prime blockchain for AI developers by offering frameworks, payments, compute tools, and decentralized storage solutions. It has been adopted by companies like Ringfence, Masa, and Cosmose AI. With a market cap of $5.3 billion, Near is considered the largest AI-focused blockchain.

Near Token Downtrend

The daily chart shows that the Near token is still in a downtrend, even after rising by over 57% from its lowest point in August. It remains below the upper side of the descending channel that connects the highest swings since May 26. Near has also been forming a series of lower lows and lower highs, indicating a risk that it may resume the downtrend and retest the support at $4. A bullish breakout will be confirmed if Near rises above the descending trendline.

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