In the last day, Hedera Hashgraph (HBAR) had a wild ride due to confusion and too much optimism. Yesterday, it shot up by over 105% in trading but then quickly dropped by more than 20%. This morning, it continued to fall, losing over 26% of its value. This rollercoaster could give critics more reasons to doubt cryptocurrencies.
Today, Hedera’s price started higher than yesterday’s opening, at $0.156441 compared to $0.090412. However, it quickly fell from its peak of $0.18025 earlier in the day to $0.132002 at the time of writing, marking a steep decline of over 26% in just a short period. But what caused this sudden drop?

Confusion Surrounds Hedera’s Announcement on BlackRock MMF Tokenization
The HBAR Foundation sparked widespread interest on social media when it posted about BlackRock’s ICS US Treasury money market being tokenized on Hedera.
This announcement, hailed as a significant milestone in asset management, garnered over 2 million views within hours. However, some misinterpreted the message, believing that BlackRock had chosen to tokenize its money market fund directly on the Hedera blockchain.

In reality, BlackRock was not directly involved in tokenizing its MMF on Hedera. Instead, the Twitter post referred to the availability of BlackRock MMF shares as tokenized assets on platforms like Archax and Ownera, in addition to Hedera.
Archax clarified this aspect in a blog post the same day, stating that they were expanding their offerings to include the BlackRock ICS US Treasury money market fund as a tokenized asset available on their platform and connected networks.

Social Media Reacts to HBAR Foundation’s Ambiguous Announcement
The HBAR Foundation’s announcement regarding the tokenization of BlackRock’s ICS US Treasury money market fund on Hedera sparked criticism and confusion on social media platforms. Many users, like Chris O (TheOCCryptobro), clarified that BlackRock itself was not directly involved in the tokenization process and had no affiliation with the Hedera protocol.
Chris O explained that the tokenization of the BlackRock fund on Hedera was initiated by a project within the HBAR community, similar to an individual purchasing a Rolex and sharing a photo on social media without implying a partnership with the luxury brand.

Hedera’s Volatility Fuels Anti-Crypto Sentiment
The recent rollercoaster ride experienced by Hedera Hashgraph (HBAR) has provided ammunition to anti-cryptocurrency voices, including prominent figures like Jamie Dimon, regulators, and Federal Reserve presidents. The sharp fluctuations in HBAR’s price, driven by misleading information and non-events, exemplify the type of instability that critics often associate with blockchain technology and cryptocurrencies.
Hedera’s rapid surge, followed by a steep decline within a short timeframe, underscores the perception of volatility without a solid foundation. This episode feeds into the narrative propagated by detractors, who argue that cryptocurrencies and decentralized finance (DeFi) lack stability and reliability, making them unsuitable for widespread adoption.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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Due to the expansion of stablecoins and the popularity of SaucerSwap V2, Hedera’s TVL increased by 146% to $157 million.The UKCBC’s regulatory advancements, which include Coinbase and Ripple, foster an atmosphere that is favorable to blockchain innovation.
Hedera’s DeFi ecosystem’s Total Value Locked (TVL) has grown significantly, climbing by 146% since the year’s beginning to a substantial $157 million, based on Messari’s findings.
This indicates the ecosystem’s exceptional growth. The 89% increase in TVL recorded in HBAR, Hedera’s own cryptocurrency, mirrors this surge and indicates a large inflow of cash into the network.

SaucerSwap V2: A Trigger for the TVL Explosion in Hedera
A major factor contributing to this remarkable surge in growth is the launch of SaucerSwap’s V2 in November 2023. The decentralized exchange’s native currency, SAUCE, reached a peak of $0.21 thanks to this improvement, which has completely changed the game for the better.
With a TVL of $150 million and a steady daily trading volume of $5 million until 2024, SaucerSwap’s performance metrics are equally remarkable, setting new milestones for the platform.
Among all the digital assets, the stablecoin market is expanding rapidly as well. With a current value of $8 million, the supply of USDC on Hedera has increased by 27% year to date.
Stablecoin capitalization has been rising, continuing the pace from the final quarter of the previous year, indicating a persistent demand for these digital assets. The video below delves deeper into this development and provides additional insight.
Difficulties in Hedera’s DeFi Environment: An Examination of Stader’s Case
Conversely, not every sector in Hedera’s DeFi environment is expanding. A 11% decline in TVL has occurred for Stader’s liquid staking solution on Hedera, from 378.6 million HBAR to 338.1 million HBAR. This decrease highlights the complexity and intrinsic volatility of the DeFi industry, which is still in its infancy despite its quick rise.
Meanwhile, according to prior ETHNews reporting, the establishment of the UK Cryptoasset Business Council (UKCBC) is a significant turning point for the cryptocurrency industry’s regulatory reforms and technological advancement.
The council’s membership includes important organizations like Ripple, Coinbase, and Hedera Hashgraph, indicating a united front in the drive for regulatory clarification.
The price of Hedera’s native cryptocurrency, HBAR, has dropped 6.53% in the last 24 hours, to $0.1147, as of writing. However, this represents an 8.78% increase over the last week.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
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