In its Q2 report, the treasury of the layer-one blockchain Near Protocol (NEAR) recorded a decline to $900 million, a noticeable fall from its Q1 total of $1.1 billion. This decline can be attributed to a plunge in the price of NEAR tokens, which dropped from $1.99 to $1.38 each, mirroring the fluctuations in the broader cryptocurrency market.
Currently, the Near Treasury comprises $349 million in fiat currency, 315 million NEAR, and $90 million dedicated to loans and investments. In Q2, the Near ecosystem distributed a net total of $16 million and 1 million NEAR. Amid industry challenges such as lawsuits faced by Binance and Coinbase by the U.S. Securities and Exchange Commission, the Near Foundation is adopting an approach focused on three core strategies. These include improvement of its blockchain operating system, expansion of its decentralized ecosystem and the onboarding of Web2 users to Web3.
The Near ecosystem recorded 1.1 million monthly active accounts during Q2, indicating a lively and engaged user base. For Q3, Near team plans to concentrate its efforts on fostering partnerships and supporting projects in the Near Horizon ecosystem. Back in Q4 2021, Near Protocol established an $800 million ecosystem fund apportioned into decentralized finance grants, foundation grants, startup funds, and funds for regional hubs.
While the market might currently cast a shadow of uncertainty over the ecosystem’s financial health, the near Protocol’s commitment to strengthening its operation and broadening its ecosystem could be seen as a beacon of resilience in the stormy seas of the crypto market. This highlights the duality of the crypto-verse, where the volatile nature of tokens and their valuations must coexist with the solid strategies and resilience of the blockchain entities behind them.
Nevertheless, it’s important to keep in mind that operating in such a turbulent market comes with its fair share of risks. The Near Foundation’s commitment to a responsible treasury management strategy attests to this. They have deliberately limited their exposure to non-NEAR assets, and their fiat reserves are held in high-rated Swiss bank accounts as a safety measure.
As a parting note, crypto traders, enthusiasts, and skeptics alike should remember that while market movements and token values might define the instantaneous critical mass, the long-term prowess of any blockchain enterprise lies in its tech advancements, user engagement, and the value it brings to the larger decentralized ecosystem.
Source: Cointelegraph
