$NEAR NEAR Reasons for the Drop (Quick Summary)
💥 Key Trigger
Cross-chain agreement hacked: On October 1, the NEAR Intents ecosystem application was hacked for $3.8 million (all funds have been fully recovered), and the mainnet was not affected.
📉 Three Deeper Underlying Reasons
Liquidation domino effect for longs: The earlier rally pushed prices up, and the derivatives market had accumulated too much leverage. News of the hack triggered a mechanical forced closing (Long Squeeze).
Staking yield plunges: A new proposal cut the inflation rate from 2.5% to 1.6%, causing staking interest to drop from 5.4% to 3.5%, prompting large holders to unlock and move funds early.
Money flows back to Bitcoin: With “good news” already priced in (e.g., the Bitwise ETF) and Bitcoin surging, market-wide “attention/traction” shifted—capital pulled out from altcoins.
This drop isn’t just retail panic causing them to cut losses. It’s big players actively shifting capital after the bullish momentum ran out (moving toward BTC or adjusting positions in response to the upcoming production reduction), and along the way they also unintentionally triggered the forced liquidation chain for highly leveraged long positions.
This also explains why, even after the stolen $3.8 million was fully recovered and the official commitment to full compensation was made, the coin price didn’t immediately V-rebound. The derivatives market’s structure and the return of funds both require time to rebuild a base. Currently, price is consolidating in the key support range of $4.50–$4.70.
💥 Key Trigger
Cross-chain agreement hacked: On October 1, the NEAR Intents ecosystem application was hacked for $3.8 million (all funds have been fully recovered), and the mainnet was not affected.
📉 Three Deeper Underlying Reasons
Liquidation domino effect for longs: The earlier rally pushed prices up, and the derivatives market had accumulated too much leverage. News of the hack triggered a mechanical forced closing (Long Squeeze).
Staking yield plunges: A new proposal cut the inflation rate from 2.5% to 1.6%, causing staking interest to drop from 5.4% to 3.5%, prompting large holders to unlock and move funds early.
Money flows back to Bitcoin: With “good news” already priced in (e.g., the Bitwise ETF) and Bitcoin surging, market-wide “attention/traction” shifted—capital pulled out from altcoins.
This drop isn’t just retail panic causing them to cut losses. It’s big players actively shifting capital after the bullish momentum ran out (moving toward BTC or adjusting positions in response to the upcoming production reduction), and along the way they also unintentionally triggered the forced liquidation chain for highly leveraged long positions.
This also explains why, even after the stolen $3.8 million was fully recovered and the official commitment to full compensation was made, the coin price didn’t immediately V-rebound. The derivatives market’s structure and the return of funds both require time to rebuild a base. Currently, price is consolidating in the key support range of $4.50–$4.70.