NEAR Protocol's Surging Momentum: A Strategic Buy for DeFi's Next Phase

The blockchain industry is entering a new era where on-chain activity and DeFi intents are no longer just metrics-they are leading indicators of ecosystem value. For investors seeking to capitalize on the next phase of decentralized finance, NEAR Protocol stands out as a compelling case study. While broader on-chain volume metrics for Q3 2025 showed a 14.2% decline in daily transactions and a 9.8% drop in active addresses, the DeFi segment within NEAR's ecosystem defied the trend. Decentralized exchange trading volume surged by over 500% to an average of $76.7 million per day, while stablecoin capitalization grew by 28% to $245 million. These figures suggest a critical shift: NEAR's DeFi layer is becoming a self-sustaining engine of growth, even as general network activity stabilizes.

The DeFi Intents Revolution

NEAR's DeFi ecosystem is not just surviving-it is thriving. By Q4 2025, Total Value Locked (TVL) had reached $169.9 million, with a 15.8% quarter-over-quarter increase in daily returning addresses. This growth is driven by projects like Rhea Finance, which introduced $rNEAR to enhance cross-chain liquidity, and the Nightshade 2.0 upgrade, which reduced block times to 600 milliseconds and finality to 1.2 seconds. The result? A 12.5% improvement in network throughput, enabling smoother user experiences and attracting institutional-grade capital.

The correlation between DeFi intents and ecosystem value is undeniable. As of May 2025, NEAR's market cap hit $3.1 billion, with a stable token price of $2.50. This stability, paired with a 46 million monthly active user base, signals a maturing platform where user retention and capital efficiency are prioritized. Tools like Flipside's NEAR Intents Dashboard and DeFiLlama's TVL tracking further validate this trend, showing sustained swap activity and cross-chain interoperability via NEAR Intents, which processed $234.9 million in swaps from 2.3 million transactions.

On-Chain Volume: A Tale of Two Metrics

Critics may point to NEAR's declining network revenue-down 0.8% quarter-over-quarter to $805,614 as reported in Q3 2025-as a red flag. However, this metric fails to capture the broader picture. The DeFi sector alone generated $6.1 billion in on-chain revenue during H1 2025, with 63% attributed to trading fees from DEXs and derivatives platforms. NEAR's DEX volume surge, coupled with its 28% stablecoin growth, indicates a shift from transactional fees to capital-driven revenue. This is a hallmark of a maturing DeFi ecosystem, where liquidity provision and cross-chain activity outpace traditional on-chain metrics.

Strategic Buy Thesis

For investors, the case for NEAR is clear. The protocol's focus on AI integration, interoperability, and user-centric upgrades positions it to capture a significant share of the next DeFi wave. While TVL figures may fluctuate-such as the 3.12% 24-hour decline in Q4 2025 according to DefiLlama-the underlying trends remain robust. The 15.8% growth in daily returning addresses according to CoinLaw and the Nightshade 2.0 upgrade's performance gains demonstrate a commitment to scalability and user retention.

Moreover, NEAR's cross-chain capabilities, exemplified by its integration with Sui and Stellar, reduce friction for developers and users alike. This interoperability is not just a technical feature-it's a strategic advantage in a fragmented blockchain landscape. As institutional adoption accelerates and regulatory clarity emerges, NEAR's ecosystem is poised to outperform peers reliant on speculative TVL metrics.

Conclusion

NEAR Protocol's surging momentum in DeFi is not a fleeting anomaly-it is a calculated evolution. By prioritizing DeFi intents, cross-chain liquidity, and user experience, the platform has established itself as a cornerstone of the next phase in decentralized finance. For investors, the data is unambiguous: NEAR's on-chain volume and DeFi activity are leading indicators of a resilient, high-growth ecosystem. In a market where fundamentals matter more than ever, NEAR offers a strategic buy opportunity with long-term upside.