The Journey of
$NEAR: From Layer 1 to AI
NEAR Protocol originally began its journey as a Layer 1 blockchain heavily focused on scalability and usability, founded back in 2017 by
@General_Illia and Alexander Skidanov.
Since then,
@NEARProtocol has gone through two major phases that completely reshaped the direction of the ecosystem.
1/ The pure Layer 1 era (2020-2023)
During its early years, NEAR became widely recognized for its Nightshade sharding architecture designed to achieve high scalability while preserving decentralization.
Simple Nightshade launched in 2021 followed by multiple sharding upgrades afterward, positioning NEAR as one of the more technically ambitious Layer 1 ecosystems at the time.
The protocol also differentiated itself through:
- Proof-of-Stake consensus.
- Carbon-neutral infrastructure.
- Developer-friendly tooling using Rust and AssemblyScript.
But like most Layer 1 ecosystems during the 2022-2023 bear market, NEAR struggled heavily after the broader market collapse.
$NEAR dropped from its ATH around ~$20.42 to below $2 while TVL remained relatively weak despite several DeFi applications like Ref Finance continuing to build through the downturn.
2/ The transition toward AI infrastructure (2023-2025)
This was honestly the real turning point for the entire ecosystem.
$NEAR increasingly recognized that future blockchain infrastructure would eventually need to support AI agents capable of transacting, coordinating assets, and operating autonomously across multiple ecosystems.
That realization gradually transformed NEAR into what is now increasingly positioned as a “blockchain for AI.”
Between 2024-2025, the ecosystem introduced several major upgrades:
- Nightshade upgrades Phase 2 sharding improvements.
$NEAR reportedly achieved benchmarks approaching 1M TPS on commodity hardware during 2025 testing environments.
- NEAR Intents.
An intent-based architecture allowing seamless chain abstraction and cross-chain execution for both users and AI agents without relying on complicated bridge UX.
By 2026, Intents had already processed more than ~$19B in cumulative volume while generating roughly ~$32-33M in fees fully directed toward
$NEAR buybacks.
Daily volume occasionally surpassed ~$90M.
- The NEAR AI stack
Including AI Cloud infrastructure with TEEs for private inference, IronClaw runtime for autonomous agents, and an emerging Agent Marketplace ecosystem.
The broader vision focuses heavily on user-owned AI, encrypted model execution, and verifiable compute systems.
Since this transition toward AI infrastructure accelerated, NEAR’s ecosystem metrics have improved significantly:
- Daily active addresses increased roughly 240% YoY surpassing 800,000 by Q4 2024.
- Monthly active users climbed toward ~46-51M.
- TVL expanded nearly 187% during 2024 and surpassed ~$600M during several periods throughout 2025.
- Developer count increased from roughly ~850 to over 1,200 with more than 50 AI-focused teams actively building on the ecosystem.
From my perspective,
$NEAR transition toward AI feels far less like a reaction to market trends and much more like a return to the project’s original vision.
It honestly feels much closer to a return toward the original DNA of the project itself. Illia Polosukhin came from a deep AI background at Google long before the current AI narrative exploded across crypto.
That foundation is something very few Layer 1 ecosystems genuinely possess.
While Ethereum and Solana remain heavily focused on DeFi, trading infrastructure, and memecoin activity.
NEAR is increasingly positioning itself around infrastructure for the emerging Agentic Economy, a world where AI agents can own assets, transact independently, and operate seamlessly across multiple chains.
And honestly, this could eventually become one of the most important long-term bets across the entire crypto industry if AI agents truly become mainstream over the next decade.
This may end up being the defining move that brings
@NEARProtocol back toward its prime once again.
DYOR.