- The NEAR/USD pair is on a tear after logging a new all-time high at $12.6.
- NEAR protocol’s $800 million ecosystem growth fund launch triggered explosive buying sentiment.
- The blockchain’s token has soared into overbought territory and risks correcting down.
BENGALURU (CoinChapter.com) – NEAR Protocol’s native token NEAR logged a new all-time high of $12.6 on Monday. The explosive rally followed the blockchain’s latest $800 million funding announcement to boost ecosystem, growth majorly in the DeFi space.
The move is a part of the NEARCON, NEAR Protocol’s own metaverse event that will take place in Lisbon.
NEAR’s new all-time high comes after the token popped out to $11.89 in September. Soon after the rally, an intermittent phase of sell-off and accumulation restricted the NEAR/USD from undergoing a volatile price action. But Monday’s breakout to a new high reinstated bullish sentiment in NEAR Protocol’s native token.
Related: NEAR protocol logs 40% overnight in a nonsense rally. What’s next?
NEAR Protocol’s Near Billion Dollar Fund
As per the official announcement, the Andreessen Horowitz and Pantera Capital-backed blockchain’s $800 million ecosystem growth focussed fund, also includes Proximity Labs’ $350 million fund announced recently. DeFi growth and development on NEAR Protocol is the underlying objective of the fund.
“While NEAR is giving all communities access to this record amount of funding, it will be focusing on Decentralized Finance (DeFi) teams who are actively revolutionizing and reimagining the way we interact with money.”
Fund allocation will be community-based. A “DeFi DAO” will govern the allocation of funds to projects. Protocols can also avail liquidity mining programs via the DAO. The move to foster growth in DeFi quarters comes as NEAR Protocol secures the $150 million total value locked (TVL) milestone.
Out of the remaining $450 million, $100 million will go to 20 startups ($5 million each) via the Startup Grant Pools. But the amount will undergo a redistribution and then the community will award funding to the appropriate startup.
$250 million will go to existing projects to help them further develop and scale their applications. The remaining $100 million will go to Regional Funds. NEAR Protocol’s largest community regions in Asia, Europe, and the US will stand to leverage the amount to kickstart and develop various projects.
The smart contract blockchain already awarded $45 million in funds this year to more than 120 projects.
NEAR/USD Technical Setup
With the latest rally to a new all-time high, the NEAR/USD sparked overvaluation fears. Exponential buying pressure pushed the relative strength index (RSI) to 87. As with previous runups that pushed past the usual RSI range, this one too will lead to a correction and an RSI drop to the neutral or oversold levels, for bulls to pick up the rallying mantle again.
