NEAR Outlook: Stablecoin Liquidity Surge and Sovereign Fund Plan Lift Recovery Expectations

NEAR Protocol is starting to show early recovery signals as on-chain metrics improve alongside a more constructive technical picture. The token remains far below its yearly highs, but market attention is shifting toward network activity and capital flows. Stablecoin liquidity on NEAR has nearly doubled in a week, and buyers continue to defend a key support area as traders assess whether fundamentals can carry the next rebound. Stablecoin supply jumps 98% in seven days DefiLlama data shows the total stablecoin supply on NEAR climbed 98% over the past seven days to about $128 million. The increase points to fresh liquidity entering the ecosystem, typically supporting higher DeFi usage, stronger user engagement, and better trading conditions across decentralized applications. The latest figures also put NEAR ahead of several established Layer1 networks — including Cardano, Polkadot, and XDC — in stablecoin supply. The move is being read as an improvement in network utilization rather than a purely speculative surge. In past cycles, expanding stablecoin liquidity has often served as an early sign of strengthening on-chain demand. Protocol Sovereign Fund proposal adds a tokenomics catalyst Investor sentiment has also been supported by a governance proposal from NEAR co-founder Illia Polosukhin outlining a Protocol Sovereign Fund. The plan would allocate roughly 30 million NEAR tokens into a professionally managed treasury aimed at generating sustainable yield. The objective is to rely less on token emissions and create recurring revenue to fund ecosystem development, while gradually easing inflationary pressure. The proposal is still under community discussion, but many investors view it as a potential step-change in NEAR's tokenomics and long-term value proposition. Price levels in focus: $1.70 support, $1.80 trigger, $2.20 first target Technically, NEAR is attempting to form a base after months of persistent selling. On the daily chart, buyers have repeatedly held the $1.70–$1.75 support band despite multiple attempts to push lower. Price is also nearing the upper boundary of a descending trendline that has capped rallies since June, setting up a potential inflection point. The Relative Strength Index (RSI) has started to rebound from oversold levels, signaling fading bearish momentum. A reclaim of $1.80 would bring $2.20 into view, where prior support has turned into resistance. A sustained move above $2.20 could open the broader supply zone between $2.50 and $3.00, which would represent the strongest recovery leg in months. If $1.70 fails, the bullish setup would be invalidated and NEAR could slide toward $1.55. Layer1 recovery narrative building NEAR still faces major overhead resistance, but its fundamentals are improving at a notable pace. The rapid growth in stablecoin liquidity, paired with a potential overhaul of treasury strategy, is supporting confidence as technical indicators stabilize. A full trend reversal still depends on a decisive breakout, but continued ecosystem momentum and a reclaim of key levels could position NEAR to outperform in the next phase of the broader crypto market recovery.