Can HBAR go the extra mile after this update?
- The Hedera blockchain surpassed 10 billion transactions this week.
- However, HBAR struggles with low volumes despite achieving this important transaction milestone.
The Hedera blockchain kicked off this week with good news after announcing that it passed the 10 billion transaction milestone. Despite this, its native cryptocurrency HBAR showed a lack of stimulation but will this situation prevail in June?
A recent Messari analysis looked into Hedera’s network activity in Q1 2023. The network registered a 170% surge in daily active addresses during the quarter, which marked its highest address growth in Hedera’s history. As a result, the transaction volume went up by almost 40X.
.@hedera witnessed a surge in activity to kick off the first quarter of 2023.
Transaction volume soared nearly 40x, with the average daily new accounts increasing by 170% reaching all-time highs. pic.twitter.com/hSDOwSenC2
— Messari (@MessariCrypto) May 30, 2023
The aforementioned growth in Hedera’s network activity reflected the volume surge observed in January and March. As such, there was heavy liquidity flowing into the network at the time, and it reflected positively on Hedera’s marketcap.
Interestingly, Hedera’s peak volume at the start of April achieved a lower marketcap peak as compared to the second largest volume peak in February which marked the highest 2023 marketcap.
A possible explanation for the above observation could be that the February peak attracted a lot of whale activity. The second peak was largely dominated by retail buyers and the marketcap tapered off since then. The same can be said about Hedera’s on-chain volumes which were a fraction of the volume observed between January and April.
Hedera’s performance so far in Q2 2023 has been relatively slower compared to Q1. Nevertheless, the network has maintained healthy activity which was evident by its recent milestone. The network announced a few days ago that it reached its 10 billionth transaction, marking an important milestone.
HBAR bulls still sitting on the sidelines?
Hedera’s native crypto HBAR had a strong bullish start in January and half of February. However, it has since then maintained a downward trajectory and has given up some of its YTD gains.
Its performance for the better part of May mimicked the rest of the market, hence the ranging price action. HBAR was still struggling to overcome its short-term limbo despite the recent price stimulation. It exchanged hands at $0.052 at press time.
How many are 1,10,100 HBARs worth today
HBAR’s Money Flow Index (MFI) revealed that there had been some accumulation, especially in the last two weeks. Ultimately, the buying pressure was not enough to facilitate a strong rally. In addition, investor sentiment remained low as revealed by the weighted sentiment metric, hence the low volumes.