NEAR Token Skyrockets 27% on Major Blockchain Automation Plan
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
near-protocolblockchain-scaling
Fazen Markets Editorial Desk
Collective editorial team · methodology
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The native token of Near Protocol, NEAR, surged more than 27% on May 22, 2026, after developers announced an imminent upgrade to automate the blockchain's capacity. The plan introduces dynamic resharding in June, a technical overhaul that will allow the network to automatically add shards as demand grows without requiring manual hard forks. This news propelled the token's price to $2.26, with trading volume exceeding $1 billion over 24 hours. Coindesk reported the development today, noting the upgrade aims to position Near as a more competitive and self-sustaining Layer 1 blockchain.
Blockchain scalability remains a primary bottleneck for mainstream adoption, with network congestion and high fees often stifling user growth during periods of high demand. The last major Layer 1 scaling initiative was Ethereum's transition to proof-of-stake via The Merge in September 2022, which reduced energy consumption but did not directly address throughput limits. Current activity across major smart contract platforms is elevated, with total value locked in decentralized finance protocols holding above $90 billion, indicating a sustained need for scalable infrastructure.
The timing of Near's upgrade is a direct response to increasing competition among alternative Layer 1 blockchains like Solana, Avalanche, and Sui, which have aggressively marketed higher transaction speeds. The catalyst for this specific technical push is the maturation of sharding research and a clear market signal that automated, cost-efficient scaling is a non-negotiable feature for future developers. By automating its expansion, Near removes a significant operational hurdle that has historically delayed other networks.
The market reaction to the upgrade news was immediate and substantial. NEAR's price jumped from approximately $1.77 in the prior session to a high of $2.26 as of 09:00 UTC today, a 27.55% gain that outpaced the broader crypto market. The rally pushed its market capitalization to $2.92 billion, reclaiming a position within the top 30 digital assets by valuation. Trading volume spiked to $1.03 billion over 24 hours, a sign of intense institutional and retail interest.
The scale of the move dwarfs typical daily volatility for the asset. Before the announcement, NEAR's 30-day average true range was around 6.5%. A single-day move exceeding 27% represents a volatility event more than four times the recent norm. For context, the CoinDesk 20 Index, a benchmark for the broader digital asset market, was up only 2.1% over the same 24-hour period. This outperformance underscores that the price action is driven by a NEAR-specific catalyst, not general market sentiment.
The automation of Near's scaling directly benefits projects building within its ecosystem, particularly decentralized applications in DeFi and gaming that require predictable, low-cost transactions. Tickers like Aurora (AURORA), a scaling solution on Near, and Ref Finance (REF), a leading decentralized exchange on the network, saw correlated gains exceeding 15%. The upgrade also pressures competing Layer 1 tokens like ADA and DOT, which have faced criticism for slower-than-expected scaling roadmap execution, potentially triggering capital rotation.
A key risk is execution complexity. Dynamic resharding is an unproven technology at this scale, and any bugs or delays in the June implementation could swiftly reverse recent gains. the upgrade does not address Near's relatively smaller developer community compared to Ethereum or Solana; technological capability alone may not drive adoption. Current positioning data from derivatives markets shows open interest in NEAR perpetual swaps rising 40%, with funding rates turning positive, indicating fresh long bets are being placed on continued upside.
The primary near-term catalyst is the successful implementation of dynamic resharding, slated for June 2026. Market participants will monitor testnet performance and developer documentation releases in the coming weeks for signs of technical readiness. A second catalyst is the Q2 2026 network activity report, due in late July, which will quantify whether the upgrade attracts new developers and applications.
Key technical levels for NEAR include immediate resistance at the February 2026 high of $2.45. A sustained break above this level could target the $2.80 zone. On the downside, initial support rests at the 50-day moving average near $1.95, with stronger support at the $1.75 breakout level that preceded the announcement. Watch for a consolidation of volume; a decline below $500 million in daily trading would suggest waning momentum.
Dynamic resharding is an advanced scaling technique where a blockchain network automatically partitions its data and transaction processing load into smaller pieces called shards. The key innovation is automation: the network can add or remove these shards in real-time based on current demand, without requiring a coordinated hard fork or manual intervention by core developers. This aims to provide smooth scalability, keeping transaction costs low and speeds high even during unpredictable traffic surges, a common problem for earlier-generation blockchains.
The approaches are philosophically different. Ethereum's scaling roadmap, through its danksharding and rollup-centric vision, focuses on building scalability via secondary Layer 2 networks that batch transactions before settling on the main chain. Near's dynamic resharding is a Layer 1 scaling solution, aiming to increase the base layer's capacity directly. The Near model prioritizes simplicity for developers by keeping activity on a single, elastic chain, while Ethereum's model potentially offers greater security by leveraging its larger base layer but adds complexity for developers who must integrate with L2s.
Technologically, it directly addresses one of Solana's historical weaknesses: network instability during high demand. Solana has suffered several partial outages due to its singular, non-sharded state. Near's automated sharding is designed to prevent such outages by distributing load. However, Solana holds a significant lead in developer mindshare, ecosystem size, and raw transaction speed for simple payments. The upgrade positions Near as a more stable competitor for complex DeFi and gaming applications, but overtaking Solana's market position requires successfully migrating existing developer communities and capital.
Near Protocol's technical gamble on automation has triggered a major repricing, but its long-term value depends on flawless execution and developer adoption.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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