The Hedera blockchain has reached an important milestone this week by crossing 10 billion transactions. While these achievements speak volumes about the network’s growth, Hedera’s native cryptocurrency, HBAR, has struggled to sustain its stimulation. As we enter June, the question remains: will HBAR’s underperformance last?
Hedera Network Activity in Q1 2023:
A recent analysis by Messari investigated Hedera network activity during the first quarter of 2023. The findings revealed an astounding 170% spike in daily active addresses, the highest ever recorded in Hedera’s history. As a result, transaction volumes skyrocketed by almost 40 times, indicating strong network growth.
Market Impact and Peak:
The spike in network activity had a positive impact on Hedera’s market capitalization, especially during the spike in volume observed in January and March. Interestingly, April’s market cap peak, which coincided with Hedera’s volume peak, was lower than the second biggest peak in February. This suggests that February’s peak may be influenced by whale activity, while the next peak will be largely driven by retail buyers.
Q2 2023 Performance and Recent Milestones:
In the second quarter of 2023, Hedera’s performance was relatively slow compared to the previous 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 Price Action and Market Sentiment:
HBAR had a strong bullish start to January and parts of February but has since entered a downward trajectory, shedding some of this year’s gains. Throughout May, HBAR’s price action reflected the broader market, resulting in a mixed market. At the time of writing, HBAR is trading at $0.052.
Even though the Money Flow Index (MFI) showed some accumulation in the last two weeks, the buying pressure was not enough to catalyze any significant gains. In addition, the sentiment-weighted metric reveals low investor sentiment, which translates into low trading volume.
While the Hedera blockchain has reached an impressive milestone with its 10 billionth transaction, its native cryptocurrency HBAR has faced challenges in sustaining stimulation. The second quarter of 2023 has seen slower performance, but healthy network activity is still encouraging. Going into June, it remains to be seen if HBAR will overcome its near-term limbo and regain positive momentum. Investors and enthusiasts alike are eagerly awaiting the next chapter in Hedera’s journey and how HBAR will perform in the coming weeks.