Altcoin

Hedera’s surge in transaction speed may have this impact on HBAR’s price

Hedera network flaunted its high transaction speed in a recent post, outperforming other platforms, such as Polygon and Algorand in terms of transactions speed. However, an increase in speed did not translate to Hedera’s market dominance as it witnessed a depreciation alongside its volume. The top dApps on the network suffered as well.

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2 years ago

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Source: Unsplash

The Hedera network recently tweeted an update around its high transaction speed as compared to its competitors in the crypto space. On 30 October, Hedera’s official Twitter handle highlighted that Hedera’s transaction speed of 49.55 TPS ranked third. The network stood just below Solana [SOL] and Stellar [XLM] in this regard.

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Here’s AMBCrypto’s Price Prediction for Hedera [HBAR] for 2022-2023

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Life in the fast lane

The Hedera network, also highlighted that it managed to outcompete several cryptocurrencies on the TPS front. These networks were Polygon [MATIC] and Algorand [ALGO].

Despite the impressive transaction speed, Hedera did not perform well in other areas.

For instance, Hedera’s volume exhibited a lot of volatility over the past seven days. Furthermore, its overall volume reduced by 66% in the past week. Its market cap dominance continued to decline as well and fell by 7.36% during the same time period. At press time, Hedera had captured 0.16% of the overall crypto market.

However, despite the decline in volume and market cap, its volatility was low and had reduced by

40% over the last month. This would indicate that it would be less riskier for investors to buy HBAR at the time of writing.

Source: Messari

However, despite HBAR’s drawbacks in these areas, the Hedera network was able to perform well in the DeFi space. As can be seen from the image below, Hedera’s TVL showed impressive growth over the past few weeks.

At the time of writing, Hedera’s TVL was at $19.83 million and had appreciated by 3.06% in the last 24 hours. 

Source: DeFiLlama

Despite the positive developments of Hedera in the DeFi space, it couldn’t perform well in the dApp area. Furthermore, according to data from DappRadar, top performing dApps on the Hedera network, such as SaucerSwap and HeliSwap did not witness a positive week.

SaucerSwap’s unique active users depreciated by 3.21% and during the same time HeliSwap’s unique active users  depreciated by 14.97%. However, the decline in dApp interest did not slow down the growth of HBAR’s prices. At the time of writing HBAR’s prices appreciated by 3.03% in the last 24 hours.

Its volume appreciated by 40% in the same time period as well. Developments such as the Hedera network’s Halloween event could also have been one of the reasons for HBAR’s recent uptick.

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