- HBAR and XLM prices have been in a consolidation phase in the past few weeks.
- The next important catalyst for the two altcoins will be the BTC price action.
Hedera Hashgraph (HBAR) and Stellar Lumens prices have been soft recently as investors wait for the next move by Bitcoin, the biggest cryptocurrency in the world. HBAR was trading at $0.048 on Tuesday, where it has been at in the past few days. Stellar, on the other hand, was trading at $0.10.
Hedera and Stellar are two blockchains that have different roles in the industry. Stellar is a payment oriented network that provides solutions to companies in the industry like MoneyGram. It is best-known for its partnership with Circle, the creator of USD Coin, the second-biggest stablecoin in the world.
Stellar recently launched Soroban, a layer network that focuses on the financial industry. As such, Soroban has some similarities with Hedera Hashgraph since developers can use them to build decentralized applications. Hedera has been used to build dApps like Stader, SaucerSwap, and Pangolin. In all, it has a total TVL of over $45 million.
The challenge for Hedera is that the number of people using its DeFi protocols is significantly small. Instead, DEX users prefer larger ecosystems like Compound, Aave, Curve Finance, and Uniswap.
As I wrote earlier today, AlgoFi decided to shut down as activity in the network crashed. This is a notable thing since AlgoFi was the biggest platform in the Algorand ecosystem.
HBAR and Stellar’s XLM prices have not gone anywhere in the past few weeks. This is mostly because Bitcoin, the biggest cryptocurrency in the world, has remained stock slightly above $30,000.
Historically, these altcoins tend to move in sync with the price of Bitcoin, which explains why they have jumped this year. Therefore, HBAR and XLM prices will rise if Bitcoin makes aa bullish breakout above the year-to-date high of over $31,000.
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