The native token of the NEAR Protocol has dropped out of the top 20 cryptocurrencies by market capitalization. The asset experienced a 9.2% decline over a 24-hour period, pushing its market cap down to approximately $4.87 billion and placing it at the 21st position.
This decline follows a period in October when the token reached a peak market capitalization of around $7.2 billion. The current price level remains significantly lower than the historical all-time high of $20.44 per token.
The price drop occurred despite the community's approval of the HSP-029 proposal, which passed with 99.9% support. This measure reduces the maximum annual token issuance rate from 2.5% to 1.6% over a two-year period.
The initiative aims to prevent nearly 11.8 million NEAR tokens from entering circulation during the next two years. Analysts attribute the current selloff to broader market corrections, deleveraging in derivatives markets, and the asset's high-beta nature relative to Bitcoin and Ethereum.
