With the beginning of September 2022, the crypto market has been struggling due to bearish influence for almost 10 full months. Many are hoping that the end of summer will bring relief and the bears will at least retreat, leaving the market neutral for now. However, when September 1 came, the market saw another bearish wave, and unfortunately, the price was slammed down to its bottom.
This is also the case with Hedera (HBAR)which fell back to $0.6, which has been the token’s strongest support level since January 20, 2021. Now, this seems to be the bottom, and hopefully, the token will not sink further than the 2020 level. .
However, we have seen that there is interest in Hedera, because the token was able to bounce back and recover by several percent on September 2nd, which is a clear indicator that the token has buyers waiting for the right opportunity to buy. dip, and in doing so on September 1st, they caused a slight price increase.
What is Hedera?
Before we examine what happened to the price of Hedera, let’s see what the token is.
Hedera, also known as Hedera Hashgraph, is the most widely used, sustainable, enterprise-grade public network developed to support a decentralized economy. It allows users – who can be individuals or businesses – to create powerful decentralized applications (dApps) on the network.
Essentially, the project was created to be a fairer and more efficient system than the traditional one, with the aim of eliminating the limitations faced by older blockchain-based platforms. These are issues that have plagued the crypto industry for years, and are well known to anyone who has spent time studying crypto and blockchain, including instability, lack of scalability, slow performance, and more.
This project was founded by Dr. Leemon Baird and Mance Harmon, and was funded through an ICO held in August 2018. After that, it opened open access to the mainnet in September 2019, and has been running since then. quite successful. As part of the ICO, investors are allowed to buy the platform’s original utility token, HBAR, at the lowest possible price.
The token itself has two roles in the Hedera ecosystem, one of which is to supply network services, such as file storage, regular transactions, smart contracts, etc. The second use case is to help secure the network through staking, which means that users can lock tokens and receive regular rewards, and at the same time, they contribute to the security of the platform and help maintain its integrity.
Another thing to note is that Hedera is not built on a conventional blockchain, like most other crypto platforms. However, it brings a new type of distributed ledger technology called Hashgraph. This type of technology allows to improve aspects of crypto and blockchain that have been criticized for lack of efficiency, including speed, cost, and scalability, as mentioned earlier.
So, for example, Hedera’s average transaction fee is only $0.0001, which is practically zero-fee. Additionally, the platform can handle more than 10,000 TPSs, while blockchains like Bitcoin and Ethereum can only handle 7 and 15 TPSs, respectively.
Hedera stock price history
The earliest Hedera price data is from September 19, 2019, when the HBAR token price was at $0.057. However, immediately after the launch, the price fell – first to 0.029 and then to $0.01. After this, at the beginning of 2020, it returned to the level of $0.03, where the price remained until the end of the year, spending all 2020 with small fluctuations.
But in 2021, the project underwent a major change in behavior. Since January 3rd, the price has started to grow – slowly at first, but quickly rising, pulled by Bitcoin’s own bull that took the altcoin market by storm. At this point, Bitcoin is miles past the previous ATH of $20,000, and is approaching the $30k mark. By time Bitcoin hits $40kother markets have followed one of the biggest bull runs the world of finance has ever seen.
In the case of HBAR, the token rose to $0.4 on March 15, which was the highest point in history up to that point. Still, $0.4 is finally a strong enough resistance, and it can even reject the price. The token dropped to support at $0.3, only to return to $0.4 again on March 30, 15 days later. The same thing happened again, and again, HBAR crashed to $ 0.3, and recovered to $ 0.4.
This time, resistance pushed back strongly, and the price of HBAR crashed to $0.25, having a much harder time with recovery. While they were building momentum for another hike, mid-May arrived, and with it the first major price correction. Many are still debating whether the market crashed in May because Elon Musk announced that Tesla will no longer accept Bitcoin for electric cars, because the company discovered that Bitcoin mining is too energy-intensive, which means it leaves a huge carbon footprint.
Believe it or not, the market actually crashed at the same time as Musk’s announcement, and it held up until July 20th. The price of Hedera also fell, this time to $0.2, which was believed at the time. However, on July 20, prices began to recover again, leading to an even stronger surge.
While BTC grew until November 11, when it reached its peak, HBAR’s highest point was revealed on September 15 – almost exactly a year ago, when the token reached the price of $0.5. This was done with a big jump that had the same correction as the consequence, to $ 0.3 until September 29. However, Hedera was not finished, and began to rise again, this time more steadily.
It reached $0.45 on November 12, which is when the bears finally reached the token, and began to pull down with the rest of the market. HBAR fell to $0.22 on December 13, which was only a month after it all started, and while it was seen a small recovery before Christmas, it still ended the year with a price of $0.22.
The price of Hedera in 2022
At that time, crypto users are still not sure if this is a temporary price crash as seen in May 2021 or if this is the beginning of a new crypto season, like the one seen in 2018. The early days of 2022 only make the situation more confusing, as crypto prices start to grow during the first five days of January. HBAR even managed to recover $0.33, and for a while, everyone thought that the November crash was over and a new surge was coming.
However, the market revealed its true nature around January 5, when the bears grabbed the price again, and this time, there was no longer any doubt – the bull was over, and the season of crypto began again.
On January 24, the Hedera price dropped to $0.18. During the next few months, Hedera can establish a fairly strong support at $0.20, with this level held during the bearish wave, and can seek resistance at $0.26 during a quieter period. The period first came in early February, and HBAR found itself at $0.26 on February 7th, only to drop back to $0.2 on February 22nd.
The situation repeated itself in late March and early April, but as April drew to a close, the bear market became more intense, which led to lower prices. Hedera, as well as many other coins, saw that they supported the break, and they sank deeper, seeking a new bottom.
HBAR found itself at $ 0.06, and until now, this level can be maintained throughout the summer, supporting the price of Hedera in May, June, July, and even throughout August.
Now, with the arrival of September, many are hoping for a new increase, as mentioned, and the last few days of August have even supported this belief. However, September 1 did not bring anything but another accident to $ 0.06, but on September 2, HBAR bounced back to $ 0.63, which is not much, but it shows that the project is willing to grow, given even the slightest opening.
Fortunately, Hedera is a project that has a bigger goal than just to pump the price of the token to the highest level, and development continues even in a bearish market. This project has also attracted a lot of attention due to its struggle to grow during the 10 bearish months we have seen so far.
Positive performance as possible, continuous development, and advanced technology brought attention to Coinbase, and a new report revealed that the largest exchange in the US is considering the HBAR listing. Meanwhile, experts continue to point the way to Hedera, noting that they are working on building a decentralized ecosystem alongside projects like Avalanche and Big Eyes Coin, both of which are major players in this area.
Some have also speculated that Hedera’s patent could lead to enterprise blockchain adoption and a 10x soon, and while this is an interesting idea, it’s just speculation at this point. However, it is encouraging, given the fact that the speculation is positive, which is good news for the project.
What will happen next?
As for what happened next, no one can tell. Hedera has been showing bullish signs for the past few weeks, but any progress it had seen towards recovery has been undone by September. Historically, the future of crypto is likely to last for a long time, leaving the market exhausted and neutral – a state that will spend some time recovering before the next big bull comes.
In the end, all anyone can do now is speculate and guess, because the crypto industry remains as volatile and unpredictable as it is today, and there is no sure way to say anything with any certainty or guarantee.
To learn more about Solana, visit Investment in Hedera guide.