Hyperliquid News Today: NEAR's High-Stakes Balancing Act: Governance vs. AI Institutional Hype

The NEAR Protocol, a key player in the crypto AI space, is navigating a pivotal moment as market volatility and governance decisions intersect with renewed optimism tied to artificial intelligence (AI) integration. Despite a year-to-date price decline of 52% for NEAR USDT, the protocol remains a cornerstone of the $26 billion crypto AI sector, boasting a market capitalization of $2.7 billion as of late October 2025, according to a Yahoo Finance article. Analysts and institutional investors are now eyeing a potential breakout, fueled by a critical vote on inflation reduction and the looming TAO halving event, according to a BitcoinEthereumNews analysis.

The immediate challenge for NEAR lies in a contentious proposal to halve network rewards, slashing inflation from 5% to 2.5%. This move, advocated by the HOT and LiNEAR protocols, aims to enhance tokenomics as the network matures, the Yahoo article notes. Validators' approval could stabilize supply dilution while reinforcing decentralization, a necessity for maintaining security in a blockchain ecosystem. However, the price has fallen to critical support levels, with a 30% drop in the last month, raising concerns about short-term sustainability, the same Yahoo piece adds.

Conversely, the AI-driven narrative offers a counterbalance. NEAR's low-cost, high-speed architecture positions it as a foundational layer for decentralized AI projects, attracting institutional interest, the BitcoinEthereumNews analysis observed. Grayscale's Decentralized AI Fund, which allocates 24.50% to NEAR—second only to TAO—reflects growing confidence in the protocol's infrastructure role, the analysis reported. Analysts project a potential 3–6x gain against Bitcoin if NEAR breaks above its 20-week moving average, aligning with broader enthusiasm for scalable AI chains, per that coverage.

The TAO halving, scheduled in six weeks, further amplifies momentum for AI-linked assets. Historical patterns suggest such events often trigger supply-driven rallies, and TAO's recent breakout above a descending resistance level has drawn comparisons to NEAR's trajectory, the analysis noted. With both tokens comprising 58.76% of Grayscale's AI portfolio, the interplay between these projects underscores a strategic bet on decentralized AI's future.

While the path forward remains fraught with risks—validator sentiment, market volatility, and execution uncertainty—NEAR's resilience in the face of these challenges could redefine its position in the crypto AI landscape. As co-founder Illia Polosukhin prepares to discuss the protocol's role in AI ecosystems, the coming months will test whether the network can leverage governance reforms and institutional backing to capitalize on the AI hype.