What happened
The value of the cryptocurrency token NEAR Protocol (NEAR -1.93%) jumped 25.3% over the last 24 hours as of 12:30 p.m. ET as investors digest a new round of funding. This run has been ongoing, and NEAR Protocol is up 90.6% over the last month.
So what
NEAR Protocol is a Layer 1 blockchain that's aiming to build a platform that developers can easily build on top of. The protocol is growing and that's in large part because of its fast, low-cost transactions that are carbon-neutral.
Image source: Getty Images.
So, why are investors so excited about this cryptocurrency? Because NEAR Protocol announced $350 million in new funding from Tiger Global, FTX Ventures, Blockchange Ventures, and others in the venture capital space. NEAR Protocol says it will use the money to accelerate the development of its blockchain. NEAR Protocol also announced $150 million in funding in January, so the blockchain is booming right now.
Now what
Cryptocurrencies are increasingly being used for utilities from finance to NFTs, and NEAR Protocol has the potential to be a leader in the space. What's needed now is investment and user growth, which can be helped by investments like this. I don't think all cryptocurrencies will be winners long term, but this is one to watch closely because it has what it takes to build more utility than most cryptocurrencies today.
