- Hedera Hashgraph price has tumbled by 93% from its all-time high.
- Its ecosystem has become relatively weak as its DeFi TVL stands at $75 million.
Hedera price has come under intense pressure in the past few months as concerns about the ecosystem continues. HBAR was trading at $0.036, which is a few points below its all-time low of $0.035. It has collapsed by more than 93% from the highest level on record, giving it a market cap of more than $970 million.
Hedera Hashgraph struggles
Hedera Hashgraph is a leading blockchain project that aims to become a better alternative to Ethereum and Algorand. It has better features and is backed by some of the leading organizations in the world. Some of the members of its governance council are companies like Servicenow, Abrdn, Standard Bank, Google, Boeing, and IBM among others.
These companies also use Hedera Hashgraph to build blockchain solutions. Hedera has some encouraging features like it can handle over 100,000 transactions per second (tps). Its transaction costs are significantly lower since it costs about $0.0001 per transaction. Transactions in its ecosystem are confirmed in less than 5 seconds.
Find out how to invest in Hedera.
A key challenge for Hedera and several other blockchains is that they have struggled to gain traction in the leading industries in Web3. For example, according to DeFi Llama, Hedera has a total value locked of just $75 million. Worse, Stader, a liquid staking platform, has a 68% market dominance.
Other top apps in its ecosystem are SaucerSwap, HeliSwap, and Bubbleswap. Hedera hopes that this will change in 2023 as it invests to gain market share in DeFi.
On Tuesday, Pangolin, a leading decentralised exchange announced that it will deploy its system on Hedera, giving it a major boost. Pangolin said that the move to Hedera was based on its carbon-negative, fixed fee model, and growing community.
Another major ecosystem news was that LG was building its NFT project on Hedera. That move will see the company bring these features to its devices globally.
Hedera price prediction
The daily chart shows that the HBAR price has been in a strong bearish trend in the past few months and is now trading at its lowest level on record. The coin has moved below all moving averages while the MACD has remained below the neutral point for a while. Notably, the volume of Hedera traded in exchanges has been falling.
Therefore, the outlook of Hedera Hashgraph price is bearish, with the next key support level being at $0.020. However, a rebound later this year cannot be ruled out if the Fed points to a pivot.
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