NEAR Protocol leads the CoinDesk 20 index higher with a 6.3% gain, outpacing broader market momentum on Thursday. Internet Computer (ICP) follows closely behind with a 5.8% advance, signaling renewed strength in layer-1 blockchain tokens after recent consolidation.
NEAR's outperformance reflects growing developer activity on its platform. The protocol processed over 2.8 million transactions in the past 24 hours, with total value locked (TVL) holding steady above $200 million. Sharding upgrades and improved cross-chain bridge functionality continue to attract dApps seeking alternatives to congested Ethereum infrastructure.
Internet Computer's rally parallels broader institutional interest in alternative L1s. ICP trades near $13.50 after weeks of range-bound trading between $12 and $14. On-chain data shows whale accumulation, with addresses holding 1,000+ ICP increasing by 3.2% over the past week.
The CoinDesk 20 itself gained 2.1%, reflecting a broader shift toward alt-layer-1 tokens. Bitcoin and Ethereum saw modest gains of 1.2% and 0.8% respectively, while smaller-cap index constituents drove the outperformance. SOL and AVAX also posted gains above 2%, benefiting from renewed focus on scalability narratives.
Trading volume across top-20 tokens jumped 18% day-over-day, suggesting institutional rebalancing ahead of the March CPI print. Options markets show elevated call buying on NEAR, with February expiries seeing notable demand at the $2.50 strike.
Regulatory tailwinds may also support the rally. Recent SEC guidance signaling more lenient classification of certain alt-L1 tokens has reduced overhang sentiment. NEAR Foundation's ecosystem grants program continues funding development teams, with $85 million allocated this quarter alone.
Technical setup favors continued momentum. NEAR broke above its 50-day moving average for the first time since December, while ICP cleared key