NEAR Protocol (NEAR) is trending downwards towards an important support zone at $1.22. This may spark a market correction, but analysts believe that it will soon reverse. On Saturday, May 2, NEAR was valued at $1.29, representing a decline of almost 9% in the past seven days, which is a weak trend exhibited by other cryptocurrencies, based on data from CoinMarketCap.
Source: CoinMarketcap
The current price movement places focus on the $1.25 to $1.22 range, a level widely viewed by traders as a strong demand zone.
Historically, such zones attract buying interest due to accumulated liquidity and prior support, and market participants are now watching closely to determine whether NEAR can stabilize and reverse from this area.
A successful hold could trigger renewed upside momentum, while a breakdown may extend short-term losses.
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NEAR’s Value Gap Widens
Despite the ongoing correction, some analysts argue that NEAR’s fundamentals remain strong. Crypto analyst Michaël van de Poppe recently described the asset as “extremely undervalued,” highlighting that the token’s entire supply is already in circulation, reducing inflation risks and aligning the network with active users.
He also pointed to the growing intersection of artificial intelligence and blockchain technology, suggesting that projects positioned in this sector may be overlooked by the broader market.
From a financial perspective, NEAR Protocol has demonstrated notable growth in network revenue. In the first four months of 2026, the protocol generated approximately 12 million NEAR tokens in revenue, equivalent to around $15.6 million.
This places projected annual revenue between $40 million and $60 million, compared to roughly $10 million generated before 2026. If sustained, this trajectory suggests significant expansion potential, although such projections remain subject to market conditions and adoption rates.
When compared to other leading layer-1 blockchains, the value of NEAR appears relatively low. The P/S multiple for NEAR is 34x, while that of Solana is approximately 40x. Furthermore, when contrasted to Ethereum, which is approximately 200x, NEAR’s value becomes even lower.
Typically, in the technology industry, firms are valued between 15x and 30x sales. However, for rapidly growing artificial intelligence firms, despite generating relatively lower revenue, the valuation multiples can be relatively higher.
NEAR Protocol Activity Surges Despite Weakness
Beyond valuation metrics, ecosystem activity within NEAR Protocol continues to expand. The network’s NEAR Intents infrastructure has surpassed $17 billion in total volume and more than 23 million swaps, reflecting growing user engagement.
Recent additions also include Tether Gold (XAU₮) alongside improvements to the IronClaw platform to boost the efficiency of the AI-powered agents. New collaborations for cross-border payments and privacy-preserving AI inference demonstrate how the platform is branching out into enterprise and DeFi use cases.
While the immediate direction is downward, NEAR Protocol has an overall outlook that is characterized by both technical retracement and continued fundamentals. In the coming sessions, the ability of the $1.22 support to maintain its position will become apparent against market dynamics and development indications.
Why This Matters
A potential bounce from the $1.22 support zone could signal renewed investor confidence, especially as NEAR’s fundamentals continue to strengthen despite short-term price weakness.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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