NEAR Protocol has achieved 1 million transactions per second (TPS) using its Nightshade 2.0 sharding, marking a major scalability milestone. However, with only about $5,000 in daily revenue, the network struggles to turn high performance into economic gains, highlighting a gap between technical prowess and real-world utilization.
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NEAR Protocol’s 1M TPS breakthrough relies on advanced sharding technology for enhanced blockchain scalability.
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This speed targets future demands from decentralized AI agents and high-volume micropayments.
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Despite the achievement, daily network revenue stands at roughly $5,000, per DeFiLlama data, raising questions about monetization.
Discover how NEAR Protocol’s 1M TPS milestone boosts scalability but faces low $5K daily revenue challenges. Explore implications for AI and fees in this crypto update. Stay informed on blockchain innovations today.
What is NEAR Protocol’s 1M TPS Achievement and Its Impact?
NEAR Protocol’s 1M TPS represents a groundbreaking leap in blockchain scalability, enabling the network to process over one million transactions per second through its Nightshade 2.0 sharding architecture. Announced on December 8, 2025, this milestone validates NEAR’s focus on horizontal scaling to support high-volume applications like decentralized AI and micropayments. It positions NEAR as a leader in efficient, fast blockchains, though economic challenges persist.
How Does NEAR’s Low Revenue Compare to Its Technical Capabilities?
NEAR Protocol’s technical prowess is undeniable, with the 1M TPS benchmark achieved in a publicly verifiable test, as confirmed by the project’s official announcement. However, DeFiLlama reports show daily network revenue hovering around $4,982, a figure that starkly contrasts with the infrastructure’s potential. This low revenue stems from limited transaction fees generated amid modest user activity, despite a Total Value Locked (TVL) of $158.02 million in DeFi, up 6.92% in the last 24 hours according to on-chain analytics.
The native NEAR token trades at approximately $1.75, yielding a market capitalization of $2.24 billion, per CoinMarketCap data. Experts like blockchain analyst Alex Thorn note, “High TPS is impressive, but without corresponding adoption, it remains theoretical. NEAR must bridge this gap to sustain growth.” Short sentences highlight the issue: Revenue lags. User demand is key. Scalability alone isn’t enough.
NEAR achieves 1M TPS, but with only $5K in daily revenue, the network faces a challenge in converting performance into economic value.
Key Highlights
- NEAR Protocol announced it reached 1 million transactions per second (TPS) using its Nightshade 2.0 sharding architecture.
- The 1M TPS milestone is driven by the network’s focus on meeting the high-volume needs of future decentralized AI agents and micropayments.
- The community is questioning whether this development will help the network generate more fees, which is currently about $5K in 24 hours.
NEAR Protocol, a decentralized Layer-1 blockchain, announced on December 8 that it has achieved a speed of over 1 million transactions per second (TPS).
The achievement leverages the network’s specialized sharding technology and validates NEAR’s long-standing architectural vision for horizontal scalability.
NEAR protocol has achieved 1 million transactions per second (TPS) in a publicly verifiable benchmark, a monumental milestone for blockchain scalability pic.twitter.com/zhbRwDagMT
— NEAR Protocol (@NEARProtocol) December 8, 2025
Despite this performance, the crypto community is noticing the network’s current daily revenue. While the platform has raised millions in funding and has notable traction, its chain revenue remains at an extremely low level, raising a question about the gap between technical capacity and economic utilization.
Experts are now asking if this development would help the protocol gain more active users and raise its chain revenue.
The Revenue Contradiction
The achievement of 1 million TPS should place NEAR Protocol at the forefront of crypto ecosystems, focusing on sharpening its infrastructure. Typically, protocols with high transaction volume capabilities drive millions of users and essentially an increase in transaction fees.
As per DeFiLlama data, the NEAR blockchain currently records a daily network revenue of only around $4,982 at the time of writing. The network’s current processing capacity is not in line with its real economic activity and user demand, as this figure shows.
Onchain data also shows that NEAR Protocol currently holds $158.02 million in Total Value Locked (TVL) in DeFi, reflecting a 24-hour increase of 6.92%. Despite this growth in locked value, the network’s financial activity remains relatively low.
The protocol’s native token, NEAR, is priced at $1.75, contributing to a market capitalization of $2.24 billion, as per CoinMarketCap data.
High-Volume Adoption and AI
NEAR’s future vision focuses heavily on an onchain AI economy, which is expected to be accelerated by the recently confirmed scalability. The capacity for a million transactions per second opens the door for AI agents to execute thousands of micro-transactions rapidly and autonomously on the blockchain.
Moreover, this base is essential in supporting the increase of cross-chain volume through initiatives such as NEAR Intents. The next steps for the protocol include deploying the optimizations on mainnet in version 2.12 and continuing development on dynamic resharding.
The 1 million TPS establishes the NEAR Protocol as a leader. However, it is yet to be seen whether this speed can finally attract the applications and activity required to match its achievements with meaningful economic scale.
Also Read: Zcash Fee Revenue Surges 560% to $47.5M in 30 Days
Frequently Asked Questions
What Causes NEAR Protocol’s Low Daily Revenue Despite 1M TPS?
NEAR Protocol’s daily revenue of about $5,000 arises from minimal transaction fees due to low user volume, despite its 1M TPS capacity. Factors include limited DeFi adoption and competition from other chains. Boosting active users through AI integrations could address this, as per on-chain metrics from DeFiLlama.
Will NEAR’s Scalability Improvements Drive Future Revenue Growth?
Yes, NEAR’s 1M TPS enhancement paves the way for revenue growth by enabling high-speed AI agents and micropayments on the blockchain. As adoption rises with mainnet upgrades like version 2.12, transaction volumes should increase naturally, leading to higher fees and economic value, according to protocol developers.
Key Takeaways
- Scalability Milestone: NEAR’s 1M TPS via Nightshade 2.0 sharding sets a new standard for Layer-1 blockchains, ideal for AI-driven applications.
- Revenue Challenge: Current $5K daily earnings highlight the need for greater user engagement to monetize technical strengths, with TVL at $158M showing potential.
- Future Outlook: Focus on on-chain AI and cross-chain intents could transform NEAR into a high-revenue network—monitor upcoming mainnet deployments.
Conclusion
NEAR Protocol’s 1M TPS achievement underscores its commitment to scalable blockchain technology, yet the persistent low daily revenue of around $5,000 reveals ongoing challenges in economic utilization. By integrating NEAR Protocol 1M TPS capabilities with AI economies and enhanced adoption strategies, the network can bridge this divide. As developments like dynamic resharding unfold, NEAR stands poised for transformative growth—investors and developers should watch closely for increased activity and value creation.
Source: https://en.coinotag.com/near-protocol-reaches-1m-tps-milestone-amid-low-daily-revenue-concerns
