The price of the hedera Cryptocurrency (HBAR) rose more than 140% in the last 7 days and is the second digital asset in the market with the best weekly performance (after IOTA), within the top 100 by market capitalization.
The growth that HBAR has shown during the last week allowed it to position itself in 17th place in the ranking of cryptocurrencies with the highest market capitalizationwith a value of 12.47 billion dollars. In this way, it surpassed SUI and litecoin (LTC).
With this increase, the price of HBAR went from $0.13 to $0.32. Currently, it is 42% from its all-time high (ATH) of $0.57, reached in September 2021.
HBAR quote from January to December 3, 2024. TradingView.
To explain this behavior, the first thing to note is that the investment company Canary Capital filed a request with the United States Securities and Exchange Commission (SEC). to issue the first exchange-traded fund (Bitcoin-contado/” target=”_blank” rel=”noreferrer noopener”>ETFs) from HBAR.
As CriptoNoticias has reported, in the documentation presented to the regulatory entity, it is clarified that The objective of this financial instrument will be to provide direct exposure to the value of HBAR and emphasizes that “ownership of HBAR does not entitle its holders to any share of a company’s profits or any stream of income payments.”
In addition, it mentions that “HBAR is a decentralized digital asset and its ownership is reflected in a decentralized ledger.” However, it was not reported which entity will take charge of custody of the cryptocurrencies acquired to support the fund.
Alliance with Space
During the month of November, they began to circulate rumors of a possible alliance between Hedera and Spacethe American aerospace manufacturing company founded by Elon Musk.
As reported Shayan Salehimember of the International Economic Forum, Hedera network could offer solutions to the space industry due to its ability to carry out transactions at low consumption, which can improve applications such as satellite communication and payments. “This also facilitates smart contracts for autonomous spacecraft,” says the analyst.
This is possible thanks to Hashgraph, Hedera’s consensus algorithm that allows you to process transactions more efficiently, with lower latency and greater scalability compared to other networks. The cryptocurrency used to pay transaction fees and for network governance is HBAR, so increased activity in this environment will drive the price of the utility coin.
In this context, the CEO of Testa shared in his X’s personal account a mysterious symbol that further fueled the rumors about this alliance.
Another factor that contributed to the price increase was the announcement by Charles Adkins, president of Hedera, who confirmed that the asset was included in the new COIN50 indexlaunched by Coinbase, the second exchange of bitcoin (BTC) and cryptocurrencies in the world.
As reported by CriptoNoticias, COIN50 was designed to follow the cryptocurrency marketselecting assets through a methodology based on market capitalization and fundamental evaluation. Its goal is to “facilitate the development of new indices, offer a comprehensive view of the market and assist investors in navigating the changing digital asset landscape.”
Federal Reserve integrates Hedera
In recent days, it was also known that Hedera could integrate into the United States Federal Reserve (FED) and, subsequently, strategically partner with Ripple Labs. In this regard, Salehi said that “the integration of HBAR into the FED will be expanded in partnership with XRP to enable payments with RLUSD.”
RLUSD is the stablecoin from Ripple Labs which is close to be approved by the New York Department of Financial Services (NYDFS).
HBAR and XRP are rising together thanks to market expectations. Fountain: @oroogle, profile of X
According to Salehi, Hedera and Ripple would be working on a payment standard for institutions. He considers:
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.
Bullish outlook for HBAR
For Marija Maticcryptocurrency market analyst, HBAR is one of the “dinosaurs resurrected and ready to dominate institutional interest.” By “dinosaurs” he refers to several-year-old cryptocurrencies that seemed forgotten in the current bull cycle.
He also notes that Hedera “has emerged as one of the most prominent institution-focused distributed ledger technologies,” adding: “Its board of directors is made up of 32 major global institutions, including IBM (IBM), Google, Dell (DELL ), Boeing (BA) and Deutsche Telekom, which act as consensus nodes and earn rewards for network transactions.”
The Hedera network is a Web3 ecosystem that operates under a permissioned governance scheme, meaning that only certain entities, such as large companies, can operate governance nodes. Unlike traditional decentralized networks, where any person or entity can join as a node without restrictions, Hedera requires permissions to participate in its consensus network.
Although this model limits participation to a select group, it makes the environment more suitable for enterprise applications and real-world use cases, such as business payments, smart contracts or traditional financial services. “While less desirable in the DeFi environment, this design makes Hedera more suitable for real-world asset use cases,” Matic explains.
Adoption by institutional players may generate continued demand for HBAR to cover transaction fees and secure the network, which could boost its value in the long term.
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