HBAR price remained under pressure this weekend as crypto industry volumes fell. Hedera was trading at $0.0745, a few points below the weekend high of $0.077. It remains 81% below its all-time high, with concerns about its ecosystem growth and low fees remaining.
HBAR Price Has Retreated Amid ETF and Ecosystem Growth Concerns
Hedera, one of Ethereum’s top rivals, has been in a steep downward trend over the past few months. This retreat is mostly due to the ongoing crypto market crash, which has impacted Bitcoin and other altcoins.
HBAR token has also slumped because of the ongoing weak demand for the spot ETFs that were launched last year. Data show that the Canary HBAR ETF has seen $103 million in cumulative inflows, while current assets are just $49 million.
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The fund has had just $988k in inflows this month after adding $1.61 million in June. It added $4.12 million in assets in May and $2.31 million in the previous month. While these metrics are better than those of Bitcoin and Ethereum, they show that demand for the fund remains thin.
Fundamentally, Hedera faces major ecosystem challenges. While it has inked some major deals with companies like Google and IBM, its role in key industries like DeFi and the real-world asset (RWA) tokenization industry is still weak.
Data shows that the total value locked (TVL) in its DeFi industry has tumbled to $43 million from a record high of $213 million. The stablecoin market capitalization has dropped to just $41 million from last year’s peak of $210 million. Its network activity has recently pushed its network fees substantially lower.
Hedera’s chain fees stood at just $647 in the last 24 hours and $120,000 this year. App fees, which are the fees that its ecosystem has made, stand at just $1.2 million this year, down from $7 million last year.
Hedera Price Technical Analysis
The daily chart shows that the Hedera coin has been under pressure in the past few months and is now trading at $0.0745. It has slumped below all moving averages, while the current price coincides with the lowest point in February this year
HBAR also dropped below the key support of $0.083, its lowest level in April. Therefore, the price will likely remain under pressure in the coming days and may drop further to the key support level of $0.05 by the end of the year.
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