The darkest moment or the beginning of a turning point? Soaring data as NEAR slashes layoffs

In the last quarter of 2023, the NEAR protocol not only achieved remarkable achievements in technological innovation and market performance;cryptocurrencyoccupy a prominent position in the field. As shown in the trend above, NEAR had a very significant growth at the end of December. NEAR's circulating market value at the end of 2023 reached US$3.7 billion (a month-on-month increase of 245%; a year-on-year increase of 246%), while its fully diluted market value reached US$4.3 billion. NEAR's market capitalization ranking improved 10 spots, from approximately 40th to 30th.

However, behind this series of positive developments, the NEAR Foundation suddenly announced news of layoffs, a decision thatCommunitysparked widespread discussion and speculation. This article aims to objectively analyze NEAR's performance in Q4 and explore the possible strategic considerations behind its decision to lay off employees.

In 2023, Q4NEAR performed well in various data indicators, and its global ranking jumped to 25th.

According to the latest NEAR 2023 fourth quarter report from professional data analysis report Messari, the NEAR protocol iscryptocurrencyThe performance in the market has been impressive. Its steady growth in the decentralized finance (DeFi) space, especially driven by key protocols, has brought its total value locked (TVL) to $128 million, an increase of 147% from the previous quarter, globallyBlockchainRising to approximately 25th in the rankings. This remarkable achievement marks NEAR’s strong growth and increased market influence in the DeFi field.

This achievement of the NEAR protocol is mainly due to its steady growth in the DeFi field, especially Burrow Finance (TVL of 69 million US dollars, an increase of 242%, accounting for 54%), Ref Finance (TVL of 25 million US dollars, an increase of 118%, accounting for 19%) ), Orderly Network (TVL dropped but activity high) and Aurora Plus (TVL $17 million, increase 326%). Not only do these protocols each have unique features and advantages, but together they account for 91% of the total locked value of the NEAR network,

Decentralization of NEARexchange(DEX)'s performance in the fourth quarter was equally impressive. Total transaction volume reached $400 million, an increase of 237% from the previous quarter. This significant growth is mainly due to Orderly Network and Ref FinanceexchangeThe average daily trading volume increased significantly. This not only demonstrates the liquidity and user activity of the NEAR network, but also reflects itscryptocurrencyCompetitiveness in the trading market.

NEAR's achievements in technological development are also worthy of attention. In Q4, NEAR launched a number of innovative products and services, all of which are designed to optimize developers’ development experience and improve users’Blockchaininteractive experience.

1. FastAuth SDK Beta: This tool simplifies userBlockchainAccount registration and login process that enables users to register via email without having to memorize a seed phrase or password, improving accountSafetysex.

2. Web Push Notifications: This feature allows developers to send direct push notifications to users, transcending the limitations of traditional in-app notifications and enhancing real-time user engagement.

3. NEAR Query API (Beta): As a serverless solution, it provides developers with the NEAR blockchain indexer, storage, and GraphQL endpoints, simplifying blockchain data interaction and application development processes.

The layoffs are not due to poor financial conditions. NEAR is likely to make many adjustments to its development strategy.

Although NEAR has made remarkable achievements in technological innovation and market performance, the NEAR Foundation suddenly announced on January 11 that it would lay off about 40% team members. This decision undoubtedly surprised the outside world. The announcement of this restructuring is not only in cryptocurrencyCommunityIt has attracted widespread attention and triggered in-depth thinking on the future development direction of NEAR.

According to the NEAR Foundation’s financial report, the foundation’s financial position is quite solid. Reports show that the foundation has more than $285 million in legal tender assets and more than $1 billion worth of NEARToken. Such financial reserves are theoretically sufficient to support the foundation's long-term operations and development. Therefore, it can be inferred that the decision to lay off this time is not due to financial pressure, but is more likely to be based on the re-evaluation and adjustment of future strategic directions.

Next, we might as well interpret the new direction and new plan of NEAR's strategic adjustment, in order to bring more investment value references to the majority of users. We believe that NEAR’s future development may move in the following directions:

1. Focus on core business: In the rapidly developing blockchain industry, effective allocation of resources is crucial. The NEAR Foundation may be re-evaluating its business priorities to ensure resources and attention are focused on projects with the greatest potential and best alignment with its long-term vision. This could mean tighter prioritization of existing projects or even cutting back on those that no longer fit the core strategy.

2. Strengthen technological innovation: NEAR has always been known for its technological innovation, especially in terms of data availability (DA) and chain abstraction. The layoffs may be to focus more R&D resources in these key areas to accelerate the development and market promotion of key technologies.

3. Improve operational efficiency: In any organization, as the scale increases, improving operational efficiency often becomes a challenge. This decision of the NEAR Foundation may be aimed at simplifying the organizational structure, improving decision-making efficiency and the ability to respond to market changes.

4、市场和Community的长期发展：NEAR基金会可能正在寻求通过更加集中的资源投入，来加强其在市场和社区中的影响力。这可能包括加强与开发者社区的合作，或是在特定市场领域内建立更强的品牌和用户基础。

NEAR's increased investment in technical routes such as data availability (DA) may have an impact on the overall performance of the project

This decision by the NEAR Foundation may mean that it shifts its business focus to certain specific products or services. For example, NEAR's development in data availability (DA) deserves attention.

The NEAR Data Availability (NEAR DA) layer launched by NEAR aims to provide a more efficient and lower-cost data availability solution for Ethereum rollups. The launch of this technology not only demonstrates NEAR's strength in blockchain technology, but may also become a key direction for NEAR's future development.

In addition, NEAR’s efforts in chain abstraction are also worthy of attention. By simplifying the user experience and enabling users to seamlessly transact and interact on different chains, NEAR is working to expand its decentralized applications (DApp) user base. The implementation of this strategy may require more resources and focus, thus explaining the NEAR Foundation's decision to reorganize the team.

The NEAR Foundation’s recent layoff decisions may signal a major shift in its business focus. This shift is mainly reflected in two key areas: Data Availability (DA) and chain abstraction.

The introduction of the NEAR Data Availability (NEAR DA) layer by NEAR is a clear sign of this shift. This layer aims to provide a more efficient and lower-cost data availability solution for Ethereum rollups. In the current blockchain ecosystem, data availability is a core issue, especially for applications seeking scalability and high throughput. The launch of NEAR DA not only demonstrates NEAR’s strength in solving this critical blockchain technology challenge, but also marks its strategic focus in the field of blockchain infrastructure.

The successful implementation of NEAR DA could have a profound impact on the entire blockchain ecosystem, especially in promoting the development of rollups and other layer 2 solutions in the Ethereum ecosystem. By providing a more cost-effective data layer, NEAR will not only be able to attract more developers and projects to its platform, but also enhance interoperability and synergies with other major blockchains such as Ethereum.

NEAR's efforts in chain abstraction also show a shift in its business focus. Chain abstraction refers to hiding the complexity of the blockchain and enabling users to transact and interact on different chains through a simple, unified interface. This approach not only improves user experience, but also lowers the barrier to entry, thereby attracting a wider user base to decentralized applications (DApp)world.

NEAR is working hard to achieve this goal through its various tools and services, such as FastAuth SDK and NEAR Query API. These tools are designed to streamline developer workflows, making it easier to build and maintain on the NEAR platformDApps. At the same time, these tools also make it easier for end users to access and use these applications, regardless of their technical background.

The NEAR Foundation’s decision to reorganize its team may be an effort to focus more resources and attention on these key areas. By focusing on data availability and chain abstraction, NEAR will not only solidify its position in the blockchain infrastructure space, but also make significant progress in the popularity and user experience of decentralized applications.

Opportunities and challenges coexist. Whether the old project NEAR can become the top public chain player in the industry remains to be seen.

With notable achievements in the fourth quarter of 2023, NEAR Protocol’s position in the blockchain field is increasingly solid. Its strong growth in the DeFi and DApp fields, coupled with the push of technological innovation, has made NEAR an important player in the cryptocurrency market. However, the NEAR Foundation’s recent layoff decisions reveal a deeper strategic shift that could have a significant impact on NEAR’s future development.

The reorganization of the NEAR Foundation may herald a re-evaluation of its business priorities, particularly in the two key areas of data availability and chain abstraction. This shift not only reflects NEAR’s sensitivity to market trends, but also shows its determination to adapt to the rapidly changing blockchain environment. The launch of NEAR DA and continued investment in chain abstraction are expected to bring new growth opportunities to NEAR and may also bring innovation to the entire blockchain ecosystem.

Despite the challenges of internal restructuring, the NEAR protocol still demonstrates strong market adaptability and technological innovation potential. In the future, whether NEAR can achieve its ambitious goals in key areas such as data availability and chain abstraction will be the focus of the blockchain community. As NEAR continues to strategize in these areasXiaobai Navigationinvestment, its position in the global blockchain market is expected to be further consolidated and improved.

All in all, the future of the NEAR protocol is full of opportunities and challenges. As the market continues to evolve and technology continues to advance, NEAR needs to flexibly respond to new changes in the market and technology while maintaining its core advantages to achieve its long-term development vision.

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