NEAR Protocol is back on the radar, positioning itself not merely as another Layer 1, but as a cross-chain execution layer with a compelling valuation argument. BitMEX Research recently highlighted the protocol's renewed setup, driven by a live fee engine and two significant narrative call options: privacy and artificial intelligence. This re-evaluation comes as the market begins to price in its evolving utility.
The core of this valuation shift lies in NEAR Intents. Generating roughly 18 times LayerZero’s 30-day fees, NEAR still trades at a fraction of ZRO’s fee multiple. When combining base-chain gas and Intents fees, NEAR registers a 56x annualized fee multiple. This positions it more favorably than Ethereum, Solana, Aptos, Sui, Avalanche, and Injective on the same framework, suggesting a significant discount compared to its major L1 peers.
Tokenomics also bolster the bullish case. Inflation recently saw a cut to 2.5 percent, while transaction fees actively burn supply. This mechanism is shifting NEAR towards a cash-flowing execution asset, a critical factor for long-term value accrual. Arthur Hayes, a prominent voice in crypto, named NEAR his next favorite altcoin, specifically citing its powerful combination of privacy and positive cash-flow potential.
Beyond the financials, NEAR offers substantial narrative upside. Privacy, a proven crypto use case through assets like Zcash (ZEC), finds a new execution layer in NEAR. The protocol benefits by facilitating privacy demand, exemplified by Zodl, a Zcash network wallet. Intents can convert Zcash to other crypto like USDC, streamlining transactions while preserving user privacy.
The AI narrative presents another potent catalyst. NEAR’s co-founder, Illia Polosukhin, co-authored "Attention Is All You Need," the foundational Transformer paper behind modern large language models. The project itself began as an AI company before pivoting to blockchain. NEAR AI is actively building towards fee generation through initiatives like AI Cloud, IronClaw, and an Agent Market, all designed to leverage Intents for seamless, cross-chain AI agent operations.
The market currently prices NEAR like a mid-tier L1, failing to fully account for its evolution into a cross-chain execution layer with these distinct privacy and AI advantages. Traders should watch for continued growth in Intents fees and further development milestones from its AI initiatives, as these will likely drive a more accurate market re-rating.
NEAR Protocol: Intents Fees, AI Narrative indicator Valuation Shift
NEAR Protocol is presenting a compelling 'buy the dip' opportunity, driven by its new Intents fee engine, which makes it cheaper than major L1s on a fee multiple basis, and strong narrative upsides in privacy and AI, attracting attention from figures like Arthur Hayes.