Altcoin Riding the AI Frenzy… How Far Will NEAR Protocol's Rise Go?

▲ NEAR Protocol (NEAR Protocol, NEAR)/AI Generated Image ©

Riding the artificial intelligence (AI) theme craze, NEAR Protocol's price has more than doubled in a month. However, with Bitcoin's weakness and US interest rate uncertainty overlapping, the possibility of a correction after the short-term surge is also being discussed.

According to crypto media Watcher.Guru on May 26 (local time), NEAR Protocol (NEAR) was trading at around $1.30 at the beginning of this month, but has now surged to $2.72, rising 93.5% in a month. According to CoinGecko, NEAR Protocol has surged by 14.2% in the last 24 hours, approximately 70% in the last 7 days, and 76.5% in the last 14 days.

The media outlet pointed to the global AI investment craze as the background for this rally. While AI-related stocks and platforms, including Nvidia (NVDA), are showing strength, it is analyzed that NEAR Protocol, an AI-based blockchain project, is also benefiting. The NEAR Protocol network supports AI agent-based applications and provides features such as wallet and asset protection and decentralized marketplace operation.

The market believes that if the AI theme continues to be strong, NEAR Protocol's upward trend is likely to continue for some time. Especially as investment demand for AI-related cryptocurrencies expands, the possibility of additional capital inflow amidst the altcoin rotation trend is also being discussed.

However, Bitcoin (BTC)'s weakness is considered a variable. Bitcoin recently recovered to $82,000 but then fell back to the $76,000 level, and overall market sentiment is somewhat subdued. The media analyzed that if Bitcoin's correction continues, NEAR Protocol could also face profit-taking pressure.

In addition, with US inflation indicators coming out higher than expected, the weakening expectation for interest rate cuts was also mentioned as a burden. If a high-interest rate environment persists, investors are more likely to reduce their exposure to risky assets, and a short-term price correction centered on AI-themed altcoins could occur.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*