Bitwise CIO and Sovereign CEO say NEAR is entering next phase of value accrual

Current State of NEAR

NEAR is entering a new phase in which growing usage across Intents and AI products could translate more directly into value for the token, according to Bitwise Chief Investment Officer Matt Hougan and Sovereign CEO Sal Ternullo.

Revenue and Usage

Intents is already generating revenue and supporting buybacks, while the AI side could become another source of value accrual once it reaches sufficient scale.

Future Plans and Strategies

Hougan said NEAR's existing economics are giving traditional investors a way to value the asset without relying solely on its longer term AI ambitions.

Market Impact and Outlook

The comments come after Bitwise launched NRR, its spot NEAR exchange-traded product on NYSE Arca. The product includes in-house staking, with rewards designed to accrue to shareholders through net asset value.

Supply-Side Adjustments

Ternullo also pointed to changes on the supply side of NEAR's tokenomics.

Conclusion

The ecosystem is now considering another reduction in issuance, with a governance proposal published recently aiming to lower NEAR inflation from 2.5% to 1.6% over a two year period.

Influence and Market Trends

Hougan said the shift is part of a broader market increasingly rewarding crypto projects based on fundamentals rather than lifting nearly every asset together.

NEAR's Future

Ternullo said the next stage will depend on whether NEAR can repeat the path taken by Intents on the AI side by establishing product market fit, scaling usage and eventually driving value accrual to the token.

Repricing Event

He said reaching sufficient scale to activate an AI fee switch could set up what he described as NEAR's “next repricing event.”