HBAR, the utility Cryptocurrency of the Hedera network, is up as much as 400%, if not more, in the last 30 days according to CoinMarketCap. At the time of writing, it occupies 19th place in the ranking of cryptocurrencies with the largest market capitalization in the world, above Litecoin (LTC). HBAR has risen in price more than ether (ETH) and even more than XRP in recent days.
The parabolic rise in the price of HBAR began in the first days of last month, between November 3 and 9, when it was at $0.051. Currently, its price is 0.24 dollars.
Activity in Hedera does not accompany the rise in HBAR price
In November, when almost all of the HBAR price rise occurred at the time of writing, Bitcoin-quedar-fuera/” target=”_blank” rel=”noreferrer noopener”>created 266,000 addresses/accounts in the Hedera network. This represented a significant increase compared to October, when the price of HBAR was at historic lows all month and 112,828 fewer addresses were created.
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Activity on the Hedera network does not explain HBAR’s price increases. Source: DragonGlass
In April of this year the number of addresses created in Hedera reached its annual peak with 767,954 addresses. Coincidentally, the price of HBAR was at that time at its previous all-time high, trading at $0.15.
Therefore, Hedera network usage increased with demand for its token, and not your token by the network’s demand. Seeing the price rise, more people are venturing into the Hedera network, possibly out of technological curiosity, but also to find profit opportunities in its ecosystem.
These data indicate that the price increase in HBAR could be driven by financial speculation and market expectations. and less because of the technological demand of the Hedera network. This last case would make the rise of Hedera more sustainable, since people would be buying HBAR because it is a requirement to use the network, whose transactions require payment of commissions. In this case, they would be less likely to sell it because they would prevent their own participation in the network.
The conclusion that it is financial speculation that is moving the price and not technological demand is inferred from the fact that, in April, almost twice as many addresses were created in Hedera as in November, but the price of HBAR rose considerably more, and more steadily, during this last month.
Current graph of HBAR, the cryptocurrency of the Hedera network. Source: CoinMarketCap
Transactions on the Hedera chain also demonstrate that the price increase is not accompanied by a reciprocal increase in activity on Hedera. Quite the opposite: the price of HBAR is rising more when activity on the network does not stop rising.
Both October and November have seen a dramatic decline in transactions on the network, with 18 million and 14 million respectively. In July, August and September, transactions on Hedera exceeded $4 billion.
November saw a significant decrease in transactions on the Hedera network. Fountain: DragonGlass
The minting of NFTs on Hedera also shows that the activity on the network is not too different from other occasions and cannot explain the rise in the price of HBAR. More tokens of this class were minted in February, March and August than in November, and the price of HBAR was lower than now.
The difference between NFT minting between November and other months of 2024 does not differ significantly. Fountain: DragonGlass
Why is Hedera (HBAR) rising in price then?
As reported by CriptoNoticias, the investment company Canary Capital requested authorization from the SEC (United States Securities and Exchange Commission) to issue an exchange-traded fund HBAR ETF, the cryptocurrency of the Hedera network.
After this announcement, the cryptocurrency’s price rose up to 30%. HBAR value hovered around $0.05, before jumping above $0.07. This ETF news was what initially took HBAR out of the bottom zone, below $0.06.
Another piece of news that is significantly affecting the price of HBAR has to do with the fact that according to a member of the International Economic Forum, “the integration of HBAR into the Federal Reserve will be expanded in association with XRP to allow payments with RLUSD.” Hedera, then, would be strategically associating with Ripple and its cryptocurrency XRP and obtaining from this union a good part of its market strength.
HBAR and XRP are rising together thanks to market expectations. Fountain: @oroogle, profile of X
According to the same person, named Shayan Salehi, Ripple and Hedera would be working on a payment standard for institutions:
This further indicates an upcoming layer of interoperability between HBAR and XRP, but also previously reported collaboration on a global standard for CBDC and stablecoin settlements.
Shayan Salehi, member of the International Economic Forum.
The Federal Reserve had already added to Hedera in its FedNow payment system through the main app of this style on the Internet, as reported by CriptoNoticias. This app is called Dropp, and it works with HBAR coins, stablecoins USDC, USD and non-fungible tokens (NFT).
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