NEAR Stablecoin Boom Fuels Recovery Hopes as Network Utilization Improves

NEAR Protocol's stablecoin supply has nearly doubled in just one week, reaching $128 million according to DefiLlama data. This surge in stablecoin liquidity is a strong bullish development for the ecosystem and indicates improving network utilization. Historically, expanding stablecoin liquidity has acted as an early indicator of stronger on-chain demand.

The rapid expansion of stablecoin supply on NEAR places it ahead of several established Layer-1 networks, including Cardano, Polkadot, and XDC. The growth is not driven solely by speculative trading but rather by improving network utilization. This milestone suggests that investors are increasingly focusing on the underlying fundamentals of the protocol.

A Protocol Sovereign Fund proposal has also been put forward by NEAR co-founder Illia Polosukhin. This proposal seeks to allocate 30 million NEAR tokens into a professionally managed treasury designed to generate sustainable yield. The initiative aims to create recurring revenue that can finance ecosystem development while gradually reducing inflationary pressure.

NEAR's price appears to be attempting a base-building formation after months of persistent selling pressure. Buyers have repeatedly defended the $1.70-$1.75 support region, preventing another breakdown despite multiple bearish attempts. If buyers successfully reclaim $1.80, the first upside target lies near $2.20.