Hedera celebrates another transaction milestone as HBAR recovers
- Hedera’s transaction count blasts past the 12 billion transactions milestone.
- HBAR short liquidations strengthen the bullish charge.
It is always interesting to see how blockchain projects fair when the markets are down. Some such as Hedera seem to disregard the bearish market conditions by maintaining healthy network activity.
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Hedera was already seeing the benefits of its focus on growth especially now that the market is in a bullish recovery phase. The network just announced that it crossed the 12 billion transaction milestone. An impressive feat that underscores the continued focus on growth.
— Hedera (@hedera) June 22, 2023
The above observation was important, especially for Hedera fans wondering about the fate of the network. This was because it had been overshadowed by other top blockchain networks. However, the new milestone confirmed that Hedera was still enjoying healthy growth.
Why liquidations have been instrumental in HBAR’s latest rally
On-chain data revealed that Hedera maintained healthy development activity since the start of June. Thus offering more reassurance to investors regarding the state of the network. Despite this, the weighted sentiment metric only recovered slightly from its lowest level in the last four weeks.
The lack of proper stimulation in the weighted sentiment confirmed that investor sentiment was still low. Perhaps a sign that investors were not so confident in Hedera’s native cryptocurrency, HBAR.
This was an observation that was also apparent in the derivatives segment during the middle of the week. The Binance funding rate demonstrated a preference for negative funding rates during the aforementioned period. However, that wasn’t the case as funding increased in the last 24 hours.
HBAR still managed to achieve a sharp bounce back in the last seven days during which it rallied by roughly 21% to its $0.050 press time price tag. The upside notably commenced during mid-June after the price briefly dipped into oversold territory.
The rally was initially supported by low volumes but a look at the recent volume spike between 21 and 22 June suggested something interesting. The spike may have been due to the subsequent bullish volume by liquidated short traders forced to buy to cover losses.
Note that there were negative funding rates during mid-week as stated earlier. In addition, Coinglass data confirmed that there were higher short positions on 20 and 21 June. This indicated that many traders did expect a bearish outcome.
Realistic or not, here’s HBAR’s market cap in BTC’s terms
We can see based on the above data that the liquidations have indeed contributed to bullish momentum. But then again, volumes have reverted after the spike. This meant lower demand may shift the current trajectory as the weekend approaches unless it can secure more bullish momentum.