In March, Google issued a warning that future quantum computers could compromise the encryption that protects Bitcoin (BTC).
This warning shook the market, and more protocols are taking serious measures to prepare for such risks. The NEAR (NEAR) protocol is the latest in a series moving to address these quantum vulnerabilities.
The new NEAR Protocol upgrade is launching!
After many years of making it, Close to the protocol Upgrade 2.13 was released on the testnet and included two major upgrades. The upgrade provided secure post-quantum access keys using the NIST-certified FIPS-204 signature system.
The upgrade aims to enhance account security and defend against encryption threats. As such, the upgrade adds FIPS-204, a NIST-certified signature scheme designed to not only repel a quantum attack, but also resist it.
Second, it introduced dynamic repartitioning, ensuring that the protocol automatically scales on demand. When a piece fills up with case, it splits for distribution, thus eliminating the need for upgrading. To achieve this feat, Near Protocol will work with Ledger to align hardware security with the quantum age.
How did the market react?
As expected, the upgrade prompted market participants to return. For example, buyers replaced sellers for the first time in five days.
On July 1, buying volume rose to 16.8 million while selling volume also jumped to 16.5 million. As a result, the market saw a positive delta of 200K.
The same trend continued on July 2nd, with a positive delta of 500K. A positive delta indicated renewed demand in the market.
On the derivatives side, speculators also rushed into the market. According to CoinGlass, derivatives volume rose 19% to $475 million, while open interest (OI) rose 7.5% to $409 million as of writing.
With the investment rate and trading volume rising in tandem, it suggests that investors were quick to position themselves, driven by news of the upgrade.
What’s next for NEAR?
News of the 2.13 protocol upgrade sparked a sharp uptrend for NEAR. After a period of decline, the altcoin reversed course, held support at $1.70, and then rose to $1.92.
At the time of writing, close It traded at $1.91, up 5.4% on the daily charts. During the same period, altcoin volume jumped 16%, indicating increased participation in the market.
It is worth noting that NEAR’s momentum strengthened as the daily RSI formed a bullish crossover, rising to 46. Meanwhile, DMI’s +DI rose to 19, confirming the growing momentum. Together, these two indicators indicate the potential for a strong uptrend in the future.
If the current demand holds, the RSI may flip above 50, confirming the validity of the trend, and pushing NEAR towards reclaiming the $2 resistance level. In this case, $2.5 will become the next immediate barrier. However, if the move proves to be speculative and fades quickly, the altcoin could retreat towards $1.70.
Final summary
- The NEAR Protocol 2.13 upgrade was released on the testnet, providing secure post-quantum access keys using the NIST-certified FIPS-204 signing scheme.
- NEAR stock rose 5.4%, settled at $1.7, then jumped to $0.92, as speculative demand returned in the market.
