NEAR price has rallied by over 8% and it’s still green. It is currently trading at $17.46 after dropping from a high of $ 17.90 in the last 24 hours.
But why is the price of NEAR skyrocketing? In this article, we will take a deep dive into the reasons behind the rally.
Why is NEAR price surging?
Before we delve into the current uptrend, it is important to first explain what NEAR and Near Protocol are.
In a nutshell, Near Protocol is a community-built blockchain with advanced network operability and a faster transaction speed, and NEAR is its native token.
Now onto the reasons behind the bullish trend.
There are a number of reasons that have resulted in the current price surge putting the coin in the spotlight. The two main reasons are the recent $4.5 million fund round by Trisolaris and Increased interest in altcoins among crypto investors.
$4.5 million fund round by Trisolaris
One of the main reasons for the price hike is the recent news that Trisolaris, Near Protocol’s decentralized exchange, managed to raise $4.5 million in its latest fund round. The funding was led by Electric Capital in partnership with Dragonfly Capital, Ethereal venture, Leminscap, and Jump Crypto.
The exchange aims to apply new capital in order to increase and expand the total liquidity on the platform and also hire more people to establish cross-chain swaps with the token.
Besides, the token is being widely deposited on the exchange. However, the news seems to favor Wrapped Near (WNEAR), an encrypted form of the token that is used to trade on Trisolaris, more than NEAR.
NEAR hit an all-time-high after $150 million funding in a past funding round that was led by Three-Arrow Capital and other major crypto funds like Alameda, Dragonfly, and a16z in January.
Increased interest in altcoins by investors
NEAR has also benefited a great deal from the rising interest in altcoins, especially during the altcoin season that has seen most of the altcoins register significant upwards price movements.