NEAR Protocol has witnessed impressive growth in its decentralized finance (DeFi) ecosystem, with a 150% increase in total value locked (TVL) over the past year. This surge highlights the growing interest and confidence from investors in the network. But after hitting a strong support zone at $3, the big question remains—what’s next for NEAR’s price?

NEAR Protocol’s DeFi Growth

NEAR Protocol has shown significant network expansion, with a 156% increase in network growth last year. This surge was partly driven by a broader bullish sentiment in the market, which was fueled by the results of the U.S. elections in November 2024.

According to Messari, by the end of Q3 2024, NEAR’s DeFi TVL had surged from below $100 million to $240 million, showing a significant increase in investor interest. However, the growth slowed down in the last quarter of 2024, and this mixed performance has extended into early 2025.

NEAR Price Performance: Volatility and Recovery

NEAR’s price performance in 2024 was volatile, reflecting the broader market trends. Early in 2024, the coin experienced a remarkable 160% increase. However, like many other assets, NEAR suffered a sharp decline during the summer and had a slight recovery after the U.S. elections, gaining 72%. This post-election rally, however, was short-lived, as a sell-off in December wiped out all the gains, bringing NEAR’s price down to $3, a 60% drop from its previous highs.

As of early 2025, NEAR’s price remained below the $4 mark, with its 2024 lows at $3 acting as critical support. Despite the mixed price action, NEAR has shown resilience at this level, which could suggest a potential rebound if the broader market conditions improve.

What’s Next for NEAR’s Price in Q1 2025?

Several factors are at play as NEAR’s price stabilizes near its $3 support level. One of the key contributors to NEAR’s struggles in early 2025 could be the burst of the AI bubble. Chinese AI chatbot DeepSeek, a competitor to OpenAI’s GPT, the AI-driven market momentum weakened, affecting chains like NEAR. This slowdown in the AI sector could have caused a temporary dip in demand for NEAR’s network, especially considering the platform’s strong AI focus.

Despite this, NEAR’s price is still influenced by the activity on its network. The two key metrics that have correlated closely with NEAR’s price movements are daily active addresses and decentralized exchange (DEX) volume. During periods of growth, both metrics surged, whereas during downtrends, they dropped significantly. Currently, NEAR’s daily active addresses and DEX volumes have not yet shown a decisive recovery, keeping the price muted.

Key Levels to Watch

NEAR’s price action on the weekly chart suggests that the coin may have found a bottom around the $3 support zone. This level has historically acted as a floor, with the coin bouncing back from similar price levels in March, August, and November 2024. If history repeats itself, NEAR’s immediate recovery targets could be around $4.7 or $5, levels that have previously been reached during uptrends.

However, if the price falls below the $3 support level, it could lead to a further decline towards $2, which would be a critical level to monitor for potential buyers. A break below $2 could signal more prolonged downward pressure for NEAR in the short term.

Conclusion

While the outlook for NEAR’s price in Q1 2025 remains somewhat cautious due to macroeconomic factors and the AI slowdown, the token’s strong network growth and DeFi momentum provide a solid foundation for potential recovery. If NEAR can maintain its support at $3 and attract more active users and liquidity, the coin could see upward movement towards $4.7 or $5. However, any drop below $3 would warrant careful consideration for traders and investors, as it could trigger a deeper correction.