Assess how NEAR has flipped Litecoin with its recent rally

In an interesting turn of events, the NEAR protocol token is up 15.06% in the past day to take Litecoin’s #19 position.

NEAR pushes Litecoin FAR away

The increase in market capitalization was the result of two factors: a smaller supply and a strong rally. There is only one billion NEAR in the total supply, of which 659 million NEAR in the circulating supply. Well, the 18.76% increase seen in the past 24 hours pushed NEAR’s market cap above $10 billion.

This 20.93% further contributes to March’s 85.73% month-long rally.

ALMOST price promotion | Source: TradingView – Coin-Crypto

But despite the rising price action, NEAR’s Rainbow bridge to Ethereum has seen a serious decline in usage and the assets bridged on it.

In early March, the most bridging assets – USDC, USDT and NEAR – recorded volumes above five million, 23 million and 10.4k, respectively. However, at the time of writing, the same volumes together are less than a million.

AT Rainbow Bridge total assets bridged | Source: Dune – Coin-Crypto

On the other hand, NEAR’s price action is negatively correlated with bridge usage, which jumped from $8.5 to $15.81 over the same period. (ref. NEAR price action)

However, the decline observed in the transfer rate and volume of assets on the bridge has been an active trend for more than three months. According to on-chain data, imports recorded on the bridge since December have declined by nearly 83%.

Likewise, output transactions have also noticed a steady decline of 47% month over month. Thus, the figure remains at just 45 transactions on April 1.

NEAR Rainbow bridge import and export transactions | Source: Dune – Coin-Crypto

On top of that, the total amount of Ethereum deposited in these three months and withdrawn from the bridge has also noticed fluctuations.

While deposits spiked a few times towards the end of February and mid-March, the numbers returned to their averages at the end of March.

Ethereum Deposits and Withdrawals | Source: Dune – Coin-Crypto

Although it seems that the use of the drop-in bridge only extends to the transfer of assets as the general addresses on the bridge have seen an increase in 2022.

From 14,000 addresses in January to 23,1,000 addresses, March has grown by more than 65%.

Rainbow Bridge User Stats | Source: Dune – Coin-Crypto

Nevertheless, in order to get more users to the network, NEAR will have to make itself seem lucrative. Currently, there seems to be a lack of interest from investors.

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