NEAR Plunges 8% as Middle East Tensions Rattle Crypto Markets.

June 17, 2025
By Precious A.

The NEAR Protocol token (NEAR) fell sharply on Monday, dropping more than 8% in 24 hours, as rising geopolitical tensions in the Middle East sent shockwaves across global risk assets — including the cryptocurrency market.

Geopolitical Jitters Trigger Broad Sell-Off

The sharp drop in NEAR’s price comes amid escalating conflict between regional powers in the Middle East, with new reports of drone strikes, retaliatory air raids, and concerns about potential disruptions to oil supplies. Investors across asset classes are reacting with caution, rotating out of riskier positions and into safe havens like gold and the U.S. dollar.

While the broader crypto market experienced a modest pullback — with Bitcoin down 2.3% and Ethereum off by 2.8% — NEAR was among the hardest-hit major altcoins, losing over 8% on the day and erasing nearly two weeks of gains.

“NEAR’s volatility can be partly attributed to its relatively lower liquidity and its high concentration among speculative DeFi investors,” noted Clara Zhou, Senior Market Analyst at ChainSignal Research. “When risk-off sentiment hits, altcoins with more aggressive growth narratives tend to suffer the most.”

Why NEAR Was Hit Harder Than Others

The NEAR ecosystem has seen rapid growth over the past year, particularly in DeFi and AI-focused decentralized applications. However, this rapid expansion has also made it more vulnerable to macro shocks.

In recent weeks, NEAR saw increased inflows as traders bet on its AI and zero-knowledge (ZK) roadmap, pushing it to yearly highs. But analysts suggest that much of that momentum was built on speculative positioning, which unwound quickly as geopolitical risk re-entered the global market narrative.

Whale Movements and Technical Breakdowns

According to on-chain data from Arkham Intelligence, several large NEAR wallets moved tokens to centralized exchanges over the weekend, a common precursor to sell-offs. Technical traders also flagged that NEAR broke below key support levels at $6.10, triggering stop-loss orders and accelerating the decline.

“This is a classic flush-out,” said Mike Tully, a crypto derivatives trader based in Chicago. “The fundamentals of the NEAR ecosystem haven’t changed, but when macro pressure rises, people cut their most volatile bets first.”

Wider Crypto Market Feels the Heat

The NEAR sell-off occurred within a broader context of unease across digital assets. Altcoins like Solana (SOL), Avalanche (AVAX), and Chainlink (LINK) also saw single-digit percentage losses, while total crypto market capitalization fell by nearly $50 billion on the day.

Bitcoin, the market’s bellwether, remained relatively resilient, holding above the $66,000 level despite increased volatility.

Outlook: Temporary Setback or Deeper Correction?

While it’s unclear how long the geopolitical tensions will persist, market participants remain cautious. Some analysts see the dip as a buying opportunity, particularly for investors with long-term conviction in NEAR’s technology and developer traction.

“Short-term fear is obscuring long-term value,” argued Dr. Elias Farid, a blockchain researcher at the University of Toronto. “NEAR continues to be one of the most developer-friendly, scalable chains in the space, and its ecosystem growth remains impressive despite macro headwinds.”

Conclusion

NEAR’s sharp plunge underscores the crypto market’s vulnerability to macroeconomic and geopolitical shocks. While the protocol’s fundamentals remain intact, risk-off sentiment is dominating the narrative in the short term. Investors may need to brace for continued volatility as global tensions unfold — but for those with longer time horizons, current prices may present a strategic opportunity.