NEAR Falls Near $3.74 Despite Passage of Issuance Cut Proposal HSP-029
NEAR traded near $3.74 on November 6, down about 7% on the day, even though validators approved HSP-029 to lower annual issuance from 2.5% to 1.6%. The sell-off tracked broader crypto and US equity losses, and the issuance change has not yet taken effect.
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Price Action Across the Week
NEAR fell nearly 7% to $3.74 on November 6, according to crypto.news market data, as the token traded between $3.63 and $4.05 over the prior 24 hours on $671.98 million of volume. Bitcoinist put the November 3 decline at roughly 7% to about $3.82, so the two outlets are describing different sessions and the figures should be read as separate data points rather than a single move.
Over longer windows, crypto.news reported NEAR down 12% over seven days and 28% over the past month, with market capitalization near $4.9 billion. The token remains up 95.91% over the past year, though it sits well below an October peak near $6. From that peak, the token has declined about 39.57% to the $3.63 low, according to analyst Ali Martinez's cited figures.
The Governance Vote and Its Limits
The HSP-029 proposal passed its House of Stake vote on November 2 with almost 99.9% support. It would reduce maximum annual issuance from 2.5% to 1.6% over 24 months and, by the proposal's projection, keep roughly 11.8 million additional NEAR tokens out of circulation over two years compared with the existing schedule.
The change is not yet in force. The proposal still requires Security Council review, a grace period and validator adoption before the network applies it. Lower issuance reduces dilution but also lowers staking rewards, which is part of why the market response to the approval has been muted.
Market Backdrop
Crypto.news tied the latest leg down to a sharp risk-off session on November 5, when the Nasdaq Composite fell 5.5% and the S&P 500 lost 4.3%, citing concerns about artificial intelligence spending and political uncertainty. Bitcoin dropped more than 6% toward $75,000 in the same period, and more than $1 billion in leveraged positions were liquidated, mostly longs. NEAR fell further than the broader market, which declined nearly 5%.
The token was already weak before that session. Crypto.news reported that NEAR fell below $4 on November 3, losing nearly 9% as selling hit several AI-related tokens.
Sell-the-News or Coincident Selling?
The post-vote decline has prompted talk of sell-the-news trading, in which holders reduce exposure after an expected announcement. Neither source establishes that the governance vote itself drove the price. The timing overlaps with a broad equity and crypto sell-off, and the available trading data does not isolate the proposal as a cause.
Analyst Ali Martinez identified a TD Sequential buy signal on NEAR's daily chart, citing a prior Sequential Aggressive 13 signal on October 12 that preceded the 39.57% decline. He named $4.30 as the first upside target and near $4.80 as the next resistance. Technical signals of this kind are analyst interpretation rather than confirmed trend reversals, and crypto.news noted that technical indicators still favor sellers.
Why It Matters
For Traders
NEAR's near-term direction is tied to broader risk sentiment and the $3.60 support level, so the governance approval alone is unlikely to change the setup over the next few days.
For Investors
Reducing issuance from 2.5% to 1.6% is a structural dilution cut, but its effect will only be visible after Security Council review and validator adoption complete.
For Builders
Staking yield on NEAR is set to fall as issuance drops, so protocols modeling staking returns or validator economics should re-run projections once the schedule activates.
This article is for information only and is not financial advice. Read the full disclaimer.
