That move pulled $NEAR’s market capitalization down to approximately $4.87 billion. The result: a ranking of 21st among crypto assets, one spot outside the top 20.
The fall stings more because $NEAR had only recently climbed back into that group. During a strong October rally, the token briefly re-entered the top 20 and reached a peak market cap of around $7.2 billion.
Going from about $7.2 billion to approximately $4.87 billion in a matter of weeks is a meaningful round trip. Holders who bought near the October highs are now looking at a very different portfolio.
The longer view is even less flattering. $NEAR remains far below its all-time high of $20.44, a reminder that today’s prices sit at a small fraction of the token’s peak valuation.
A supply cut the market shrugged off
The price drop landed despite a governance vote that, on paper, should have been supportive.
$NEAR’s community approved a proposal called HSP-029 with roughly 99.9% support. Votes that lopsided are rare in crypto governance, where proposals often spark heated debate.
The proposal lowers $NEAR’s maximum annual token issuance rate from 2.5% to 1.6%, phased in over two years. Issuance is the rate at which a network creates new tokens, typically to reward the validators who keep it running.
The cut is projected to keep nearly 11.8 million $NEAR tokens out of circulation across that two-year window.
Why $NEAR got caught in the downdraft
$NEAR’s slide extended a broader market correction that followed October’s rally. The research pointed to a risk-off mood across the crypto sector as the main backdrop.
Part of that mood came from deleveraging in derivatives markets. Deleveraging means traders who borrowed to amplify their bets are closing positions, often forced to sell when prices move against them.
$NEAR is considered a high-beta asset, meaning it tends to move in the same direction as Bitcoin and Ethereum but with bigger swings. When the majors wobble, high-beta tokens usually fall harder.
What this means for $NEAR holders
The immediate takeaway is that fundamentals and price are running on different clocks. HSP-029 addresses long-term supply, while the current selloff reflects short-term positioning and sentiment.
For long-term holders, the issuance cut is a structural change that does not disappear when prices dip. Lower dilution over the next two years remains locked in regardless of how the token trades this week.
For traders, the more relevant signal is $NEAR’s relationship with Bitcoin and Ethereum. Given its high-beta profile, the token’s near-term path likely depends heavily on whether the majors stabilize.
The derivatives picture is also worth monitoring. If deleveraging continues, assets like $NEAR could stay under pressure even without any negative news of their own.
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