Near Protocol (NEAR) is undervalued despite making higher highs during the past couple of months. An analyst stated that NEAR is undervalued with a market cap of 1.7 billion because the crypto community does not show interest in artificial intelligence tokens. NEAR currently has a Price-to-sales ratio of 34 but it will eventually move to somewhere close to 15.
NEAR is undervalued with a market cap of $1.7 billion
Analyst Michael van de Poppe stated that the NEAR token has a market cap of $1.7 billion and is undervalued. The analyst built the argument that NEAR was undervalued based on the thesis of the revenue NEAR has generated within the past 4 months of this year.
For instance, the analyst calculated the revenue for the first four months of 2026, which amounted to 12 million $NEAR tokens, equivalent to $15.6 million. And when this is considered for a year, it sums up to something around $40-60 million over the entire year 2026.
NEAR generates 2025 revenue in 4 months of 2026
When compared to the previous year 2025, which generated $10 million, this figure is such a huge jump. He wrote, “If that’s solely for 2025, then it’s projected to provide a CAGR of 300-500%, even during the hardest bear market conditions possible.”
In other words, the “300–500% CAGR” refers to the idea that revenue is compounding at an extremely fast rate over time. CAGR (compound annual growth rate) measures how quickly a metric grows year-over-year in a smoothed, exponential way. In this context, the claim implies that even if NEAR continues growing from $10 million to potentially $40–60 million within a year, the pace of expansion would still be very strong compared to typical market conditions, especially if it occurs during a bearish or low-liquidity environment.
Investor pay $34 for each dollar of revenue
Although the current price-to-sales ratio of NEAR is at 34, this could drop below 20 in the coming days. The Price-to-Sales (P/S) ratio is a valuation metric that compares a project’s market capitalization to the revenue it generates. It essentially shows how much investors are willing to pay for every $1 of sales or revenue a company or crypto protocol produces. The formula is calculated by dividing market cap by annual revenue.
For example, if a project has a market value of $1 billion and generates $100 million in revenue, its P/S ratio would be 10, meaning investors are paying $10 for every $1 of revenue.
NEAR traders inside bullish symmetrical triangle
From the chart below, it is clear that NEAR is forming a symmetrical triangle by forming higher lows and lower highs as the price range tightens. In a symmetrical triangle formation, the asset is actually being compressed, as neither the buyers nor the sellers have taken control of the price, and hence, there is a squeeze in the price action until the breakout occurs.
Over time, the sellers become stronger and force prices to move downwards, resulting in lower highs; however, buyers become active earlier and force the price upwards, forming higher lows. This results in the convergence of two trendlines, showing that although both forces were dominant initially, their dominance was reducing.
During this phase, liquidity builds on both sides of the range. Breakout traders are waiting above resistance, while stop-losses and liquidation clusters accumulate below support.
Since neither side is completely able to overwhelm the other, equilibrium will prevail within the marketplace until something happens that disrupts the status quo.
Eventually, one side will prevail, and whether buyers overwhelm sellers, causing a breakout to the upside, or whether sellers overwhelm buyers, resulting in a breakdown to the downside, becomes immaterial to the outcome. The longer the compression process continues in a triangle formation, the greater the resultant impulse move, since the structure has been building up potential energy and liquidity within itself. NEAR will bounce off the lower trendline and then break through the upper trendline, exceeding $2.