The Hedera blockchain has reached a significant milestone this week by surpassing 10 billion transactions. While this accomplishment speaks volumes about the network’s growth, Hedera’s native cryptocurrency, HBAR, has struggled to maintain its stimulation. As we head into June, the question remains: will HBAR’s lackluster performance persist?
Hedera’s Network Activity in Q1 2023:
A recent analysis by Messari delved into Hedera’s network activity during the first quarter of 2023. The findings revealed a remarkable 170% surge in daily active addresses, the highest ever recorded in Hedera’s history. Consequently, transaction volume skyrocketed nearly 40-fold, demonstrating the network’s robust growth.
Market Impact and Peaks:
The surge in network activity had a positive impact on Hedera’s market cap, particularly during the volume surges observed in January and March. Interestingly, the market cap peak in April, which coincided with Hedera’s peak volume, was lower than the second-largest peak in February. This suggests that the February peak may have been influenced by whale activity, while the subsequent peak was predominantly driven by retail buyers.
Q2 2023 Performance and Recent Milestones:
In the second quarter of 2023, Hedera’s performance has been relatively slow compared to the preceding quarter. Nevertheless, the network has maintained healthy activity, as evidenced by the recent announcement of the 10 billionth transaction milestone. This achievement highlights the continued progress of the Hedera blockchain.
HBAR’s Price Action and Market Sentiment:
HBAR experienced a strong bullish start in January and part of February but has since entered a downward trajectory, relinquishing some of its year-to-date gains. Throughout May, HBAR’s price action mirrored the broader market, resulting in a ranging market. At the time of writing, HBAR was trading at $0.052.
Although the Money Flow Index (MFI) indicated some accumulation in the last two weeks, the buying pressure was insufficient to catalyze a significant rally. Moreover, the weighted sentiment metric revealed low investor sentiment, which translated into low trading volumes.
While the Hedera blockchain has achieved an impressive milestone with its 10 billionth transaction, its native cryptocurrency HBAR has faced challenges in maintaining stimulation. The second quarter of 2023 has seen slower performance, but the network’s healthy activity is still encouraging. As we approach June, it remains to be seen whether HBAR will overcome its short-term limbo and regain positive momentum. Investors and enthusiasts eagerly await the next chapter in Hedera’s journey and how HBAR will fare in the coming weeks.