NEAR Protocol Cuts Token Supply by 36% as AI Crypto Tokens Bleed $2.60B in October

NEAR Protocol Enforces Supply Cut

NEAR Protocol reduced its native token issuance by 36% following a final protocol-level vote by the House of Stake governance body. Network validators ratified the parameter changes to curb inflation and manage circulating supply expansion across spot markets. On-chain transaction records confirm the updated issuance parameters took effect immediately at block validation. Governance dockets filed on-chain show unanimous support from major validator entities during the final voting rounds. Proposal HSP-029 reduced the maximum annual issuance ceiling from 2.5% to 1.6%, preventing 11.8M NEAR from entering circulation during the initial two years. Treasury reserves remain unaffected by the immediate emission cut.

Recent on-chain metrics show NEAR Protocol maintains $175M in DeFi TVL alongside $33.00B in cumulative settlement volume through NEAR Intents. These baseline platform metrics provide crucial liquidity support for market makers absorbing the lowered token emission schedule.

Validators Adapt to Compressed Rewards

Validator entities operating across the network absorbed the lower reward structure without disrupting consensus finality. Gross staking yields fell from 5.268% down to 3.372% as protocol inflation dropped below previous baseline projections. Node operators evaluated profit margins against reduced block subsidy allocations. Liquidity providers across DEX pools adjusted pricing models to account for the altered token emission rate. Exchange order-book depth monitored by market data providers showed steady positioning near the $3.84 range as traders assessed technical resistance walls.

Historical monitoring data confirms that NEAR Protocol dropped 7.00% to $3.84 immediately after network governance approved proposal HSP-029. Arbitrage desks recalibrated risk parameters across spot pairs while managing localized order book imbalances.

Nvidia Losses Trigger Crypto Token Rout

Artificial intelligence tokens shed $2.60B in market capitalization throughout October following a severe equity correction in major semiconductor stocks. According to exchange metrics tracked by CoinPaprika, the sector total fell from $16.32B on the 3rd of October to $13.72B by the 31st of October. Trading desks absorbed heavy selling pressure as risk sentiment deteriorated across correlated markets. The selloff wiped out a large portion of the 54% expansion recorded during September.

Equities faced aggressive downside momentum as late-October corporate filings revealed mounting infrastructure expenditures alongside uncertain commercial returns. Nvidia shares tumbled over 10% during the month, marking the worst monthly performance since the 2025 crash. Additional headwinds arrived when Intel and Amazon posted underwhelming quarterly updates. The Nasdaq dropped 2.86% in a single session, dragging digital asset order books down alongside traditional equities.

Markets Dismiss Speculative AI Projections

Generative artificial intelligence models recently generated speculative valuations for various altcoin assets, drawing swift dismissals from institutional trading desks. Microsoft Copilot produced theoretical price projections for Layer-1 tokens that lacked foundational backing in corporate roadmap execution. Quantitative analysts reiterated that algorithmic chat outputs carry no operational relevance for institutional capital allocation. Traditional risk management frameworks require verifiable balance sheet data and confirmed liquidity metrics rather than consumer-grade chatbot projections. Broader altcoin markets continued trading within established technical channels while participants monitored macroeconomic indicators and regional geopolitical developments.