NEAR Protocol Shifts Focus to Chain Abstraction and AI Infrastructure
NEAR Protocol is shifting its investment thesis from a high-performance Layer 1 to focus on chain abstraction, cross-chain settlement, and AI agent infrastructure. This strategic shift aims to capture growth opportunities within the multi-chain ecosystem.
The protocol has made significant progress in cross-chain settlements through NEAR Intents, which has exceeded $13 billion in cumulative volume. However, there's a gap between settlement volume and revenue captured by the protocol.
NEAR has reduced its maximum annual inflation rate from 5% to approximately 2.5%, eliminated developer gas refunds, and expanded fee burning. This improves tokenomics compared to previous cycles.
The protocol still lags behind Ethereum and Solana in terms of liquidity, developer base, and application ecosystem. NEAR faces competition from Sui, Aptos, and other cross-chain infrastructure projects.