- HBAR price has been in a strong downward trend this year.
- Hedera’s stablecoin supply has continued falling this year.
- Spot HBAR ETFs have not added substantial assets this year.
HBAR price has moved sideways over the past few months as headwinds in the network have risen and demand for the Hedera ETF has waned. It was trading at $0.0866, down sharply from the year-to-date high of $0.1352. It has dropped by over 71% from its highest point last year.
HBAR ETF Inflows Have Stalled as Hedera’s Usage Plunges
The ongoing HBAR price action is largely due to weakness in the crypto industry, where Bitcoin and most altcoins have remained under pressure.
However, its fundamentals have also contributed to the weakness. Data shows that Hedera has not added a major DeFi developer to its platform in the past few months. It only has 25 dApps and just $57 million in total value locked (TVL).
In contrast, the recently launched Monad has over 130 dApps and over $404 million in total value locked. Similarly, Hyperliquid has over 249 dApps and a TVL of $1.7 billion, while Ink has 58 apps and $480 million in assets.
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The same trend is happening in the stablecoin industry, where Hedera has established itself as a major player thanks to its small transaction costs and fast speeds. It even launched the Stablecoin Studio, a platform that makes it possible for developers to launch their stablecoins.
Data shows that Hedera’s stablecoin supply has dropped to $47 million, well below newer projects like Monad and Ink. Also, despite its large partnerships, Hedera has little market share in the RWA industry.
These numbers explain why the Canary HBAR ETF has largely backfired, adding just $594k in inflows this month. The fund has had cumulative net inflows of over $94 million, but its initial momentum is fading. This performance mirrors that of other top altcoins, including popular names like Avalanche and Polkadot that have not added any substantial assets.
HBAR Price Forecast: Technical Analysis
The daily timeframe chart shows that the Hedera price has come under pressure in the past few months. It was trading at $0.0870, much lower than its all-time high. This decline happened despite the Canary HBAR ETF being approved.
The token has remained below all moving averages, a sign that bears are in control today. On the positive side, the token has formed a falling wedge pattern, with its two lines nearing confluence.
A falling wedge is one of the most common bullish reversal signs in technical analysis. Therefore, the token will likely have a strong bullish breakout, potentially to the key resistance level at $0.10. This rebound will occur due to a potential crypto market rally as the Iran war nears its end.
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