Is This the Next Cryptocurrency to Go Mainstream?

The outlook for the overall crypto market might be bleak right now, but there's one sector that's soaring in value. Yes, you might have guessed it, AI-related cryptocurrencies are having a moment.

Just as equity investors are bidding up the prices of AI stocks, crypto investors are bidding up the prices of AI cryptos. The one that just went absolutely ballistic is NEAR Protocol (CRYPTO: NEAR). It shot up 115% in May, and is now the AI crypto with the highest market cap, valued at $2.7 billion.

The pivot to AI

A pivot to AI has fueled NEAR's ascent. As digital asset investment firm Grayscale recently pointed out in a research report, NEAR is attempting to position its core blockchain technology as important infrastructure for the AI agent economy.

In short, NEAR Protocol aims to play a key role in the future development of agentic AI. It's also layering in a privacy element, so that these AI agents can be included in corporate workflows.

Image source: Getty Images.

At this point, you might be scratching your head. Most likely, you've never considered NEAR Protocol to be an "AI crypto" -- and, quite possibly, you may have never heard of NEAR Protocol.

When it launched in 2020, NEAR Protocol positioned itself as a direct competitor to Ethereum. At that time, crypto investors were clamoring for new Layer 1 blockchain networks.

So, this is a huge pivot for NEAR. Of even greater concern, it comes after an extended period during which it has done absolutely nothing for investors. A big-picture view of NEAR Protocol shows its price has been stagnant for years.

At its peak, NEAR was a $20 crypto. Today, it trades for just $2. So it has lost 90% of its value since 2022. No wonder it's embracing the AI agent economy. It needs to do something to turn things around.

Should you buy NEAR Protocol?

If you are trying to turbo-charge your investment returns in the short term, it might be interesting to see just how much higher NEAR can go this year. Thanks to its giant jump in May, it's up 35% in 2026, and is starting to turn heads.

NEAR now ranks as the 30th-largest cryptocurrency in the world, and appears to be right on the cusp of tipping into the mainstream. There are even plans to bring spot NEAR ETFs to market, in order to make the cryptocurrency more accessible to everyday investors.

But, over the long run, there are better places to invest if you are trying to tap into the growth happening right now with AI agents. For now, I'm going nowhere near NEAR. It's simply too speculative, and I'm not entirely convinced that its recent pivot into AI is going to pay off.

Dominic Basulto has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum and NEAR Protocol. The Motley Fool has a disclosure policy.