NEAR's meteoric rise sparks caution: Is it too late to buy or is Solana the safer choice?

NEAR Protocol's price has surged by 156% over the past three months, making it the standout performer among major cryptocurrencies. The token's value increased mainly due to its private trading feature launch on September 17, which allowed users to trade perpetual futures without connecting their wallets to their trading positions.

After the launch, NEAR's price jumped 27% in a single day to about $4.43, and trading volume more than doubled. The token has already slipped 6% from its September 30 peak, signaling heavy profit-taking pressure. Currently, NEAR is trading around $5.11.

Compared to Solana, which has risen by 48% over the same period, NEAR's growth was much more rapid and may have attracted investors too quickly. Solana benefits from weeks of steady ETF demand, contributing to its more gradual rise. Solana's market capitalization is significantly larger than NEAR's, with a current price near $118.

NEAR remains roughly 75% below its all-time high of $20.44, reached in January 2022. This means early holders could sell during rallies to minimize their losses. With NEAR's market capitalization at about one-tenth of Solana's, a wave of selling could lead to even larger price declines.