The market is accustomed to finding reasons for price increases, and HBAR may be just a microcosm.
Original | Odaily Planet Daily (@OdailyChina)
Author: Golem (@web3_golem)
Today, the native token HBAR of L1 blockchain Hedera broke through 0.38 USDT, reaching a high of 0.39 USDT. The 24-hour increase exceeded 40% and the increase exceeded 104% in the past month. The price has returned to the level of November 2021.
Hedera blockchain was launched as early as 2019. On November 13 this year, crypto investment company Canary Capital submitted an application for HBAR ETF to the US SEC. Compared with the large-scale attention and discussion caused by SOL, XRP and LTC ETF applications, HBAR has always been less popular, and many crypto players who entered the circle in this round of bull market have not even heard of the project.
So, what is the origin of Hedera blockchain? What other reasons are there behind the surge in HBAR prices? Odaily Planet Daily will briefly introduce and analyze Hedera in this article.
About Hedera
Hedera is a decentralized, open-source, proof-of-stake public blockchain that uses the leaderless, asynchronous Byzantine (ABFT) Hashgraph consensus algorithm as its underlying technology. According to its official website, the Hedera blockchain consensus finality only takes 2.9 seconds, and the average cost of each transaction is $0.0001. At the same time, the network has low energy consumption, with an average energy consumption of as low as 0.000003 kWh per transaction. In comparison, Solana requires 170 times more energy.
Developers can leverage the Hedera blockchain to tokenize real-world assets, build DeFi and NFT ecosystems, create decentralized identities, and use native consensus timestamping to create low-cost, scalable, and publicly verifiable data logs - recording payment events, supply chain provenance, IoT sensor data, and more.
The Hedera blockchain is governed by a Board of Directors and the Hedera Governing Council, which is comprised of 39 term-limited and highly diverse leading organizations and businesses, including Google, Dell, abrdn, and others.
HBAR is the native token of the Hedera blockchain, used as a network fee and a staking token for the POS mechanism. The total amount of HBAR is 50 billion, with a current circulation of over 38.19 billion, a circulation market value of $13.28 billion, and the crypto market value ranks 19th.
At this point, Hedera gives the impression of being just an ordinary old L1.
What are the other reasons for the surge in HBAR prices?
As the price of HBAR tokens rose, the market generally attributed the main reason to the positive HBAR ETF application submitted by Canary Capital on November 13. HBAR rose by more than 30% on the day the news was announced.
Generally speaking, the rise in token prices caused by news will not last long. On November 26, Bloomberg ETF analyst James Seyffart also stated that the SEC’s resolution on SOL, XRP, LTC and HBAR ETFs may continue until the end of 2025.
With the good news coming out and the actual ETF approval still far away, we thought that the HBAR price would fall. However, the HBAR price is still on an upward trend and has returned to the level of the bull market in November 2021. For this reason, Odaily Planet Daily summarizes the following four reasons:
Altcoin ETFs Emerge, HBAR Undervalued Compared to Other Tokens
Currently, altcoin ETFs are emerging, and applications for SOL, XRP, LTC and HBAR ETFs have been submitted one after another. At the same time, according to Nate Geraci, president of ETF Store, at least one issuer is currently trying to apply for ADA (Cardano) or AVAX (Avalanche) ETFs. Although in the past month, compared with SOL, XRP and LTC, which have increased by 40%, 32% and 25% respectively, the HBAR token has increased by 104% and far exceeded them, but the market value of HBAR is still low, and it is still ranked 19th even after DOT.
In fact, before Canary Capital submitted the HBAR ETF application, Canary Capital launched the HBAR Trust in the United States in October, which is dedicated to serving qualified individual and institutional investors. Steven McClurg, CEO of Canary Capital and former chief investment officer of Valkyrie Funds, also said that this move is also to pave the way for the future launch of the HBAR ETF.
Therefore, as one of the few altcoins that has received institutional support and submitted ETF applications, investors may believe that HBAR tokens are undervalued and still have a lot of room for growth.
HBAR board member is expected to become the next SEC chairman
As Trump is about to take office, the next chairman of the U.S. Securities and Exchange Commission has also attracted much attention from the crypto market, and HBAR board member Brian Brooks is also one of the potential candidates for the next SEC chairman. According to the prediction market Kalshi data, although the former SEC commissioner Paul Atkins during the George W. Bush administration has a 70% chance of winning, Brian Brooks still has a 20% chance of winning.
If Brian Brooks is successfully nominated by Trump as the next chairman of the US SEC, it will not only mean that the US SEC may be pro-crypto from now on, but it will also be a huge benefit to HBAR. This expectation is also maintaining the upward trend of HBAR prices.
According to FOX Business reporter Eleanor Terrett, sources revealed that Trump will announce the successor to Gary Gensler as the new SEC chairman as early as tomorrow. I believe the answer will be revealed soon.
Leveraging the RWA track to develop
Currently, the RWA track is gradually regaining vitality, and institutions are increasing their investment in RWA. Tether, the issuer of the stablecoin USDT, launched the asset tokenization platform Hadron by Tether on November 14, and Visa launched the Visa Tokenized Asset Platform (VTAP). The Hedera blockchain is also actively developing RWA. According to Hedera's official data, the value of assets tokenized through the Hedera blockchain has reached 50 million US dollars. It has provided tokenization services to well-known companies such as Dovu, abrdn, and Shinban Bank.
Steven McClurg, CEO of Canary Capital and former chief investment officer of Valkyrie Funds, also said that Hedera embodies the type of enterprise technology that connects cryptocurrency with real-world scalability, and expects technology applications to grow further.
Korean Market FOMO
Judging from the trading volume, HBAR is also being FOMOed by the Korean market. According to CoinGecko data, on Upbit, the largest exchange in South Korea, XRP has the largest 24-hour trading volume, with a trading volume of over 5.372 billion US dollars; followed by HBAR, with a 24-hour trading volume of over 1.353 billion US dollars, which is 3 times the trading volume of BTC. At the same time, compared with Binance, HBAR's 24-hour trading volume on Binance exceeded 1.289 billion US dollars, which is not as good as Upbit.
At the same time, the 24-hour trading volume of HBAR on another Korean exchange, Bithumb, reached US$1.43 billion, which not only exceeded the trading volume of BTC on this platform, but was even higher than the 24-hour trading volume of HBAR on Upbit.
It can be seen that the Korean market is not only the main buying market for XRP, but also the main buyer of HBAR.
With the arrival of the alt season, old tokens can also be revitalized
Trends are always unstoppable. In the past year, altcoins have not performed well. First, they were caught up in the controversy of VC coins' "high valuation and low circulation" and huge unlocking, then they ushered in the phenomenon of BTC's continuous highs and the sluggish altcoin market, and finally faced the impact of the rampant Meme coins. So much so that even Shenyu, a veteran in the crypto industry and co-founder and CEO of Cobo, previously asserted that "there is no altcoin season in this cycle."
As a result, the sector rotation is "late but late", and the copycat season has finally arrived. According to Nan Zhi's analysis of Odaily Planet Daily, the funding rate is in a safe zone, and the copycat market share is close to the first starting point in 2021. (Related reading: Looking back at the market data of the past 4 years, which stage of the bull market are we in?)
The market is used to finding reasons for price increases, and HBAR may be just a microcosm, representing that perhaps in a real alt season, even "old tokens" can rise to make market players dizzy. Instead of sighing, why not join the trend.
