With the start of September 2022, the cryptocurrency market has been struggling with bearish influence for nearly 10 full months. Many hoped that the end of the summer would bring relief and that the bears would at least retreat, leaving the market neutral now. However, when September 1st came, the market saw another bearish wave hit it and, unfortunately, prices were slammed back to their respective lows.
This was also the case with Hedera (HBAR), which fell back to $ 0.6, which was the token’s strongest support level since January 20, 2021. For now, this appears to be its low and , hopefully, the token will not sink further to 2020 levels.
However, we have noticed that there is interest in Hedera, as the token has managed to bounce back and recover by several percentages as of September 2nd, which was a clear indicator that the token has buyers who are waiting for the right opportunity. to buy the decline, and by doing so on September 1 caused a slight increase in prices.
What is Hedera?
Before checking what happened with Hedera’s price, let’s first see what the token is about.
Hedera, also known as Hedera Hashgraph, is the most used, sustainable and enterprise-grade public network developed to support a decentralized economy. It allows users, who can be individuals or companies, to create powerful decentralized applications (dApps) on their network.
In essence, the project was created to act as a fairer and more efficient system than traditional ones, with the aim of eliminating the limitations that old blockchain-based platforms face. These are issues that have been troubling the cryptocurrency industry for years and are well known to anyone who has spent any time studying cryptocurrencies and blockchains, including things like great instability, lack of scalability, slow performance, and the like.
The project was founded by Dr. Leemon Baird and Mance Harmon and was funded through an ICO that took place in August 2018. Subsequently, it launched open access to its core network in September 2019 and has been running ever since. quite successfully. As part of its ICO, investors could purchase the platform’s native utility token, HBAR, at the lowest possible price.
The token itself plays two roles in the Hedera ecosystem, one of which is to power network services, such as file storage, regular transactions, smart contracts, and the like. The second use case is to help secure the network through staking, which basically means that users can lock their tokens and receive regular rewards, while contributing to the security of the platform and helping it maintain its integrity.
Another thing worth noting is that Hedera was not built on a conventional blockchain like most other crypto platforms. Instead, it brought a new type of distributed ledger technology called Hashgraph. This type of technology allows it to improve aspects of cryptography and blockchain that have been criticized for their lack of efficiency, including speed, cost and scalability, as previously mentioned.
So, for example, Hedera’s average transaction fee is only $ 0.0001, which is practically zero. Furthermore, the platform can handle over 10,000 TPS, while blockchains like Bitcoin and Ethereum can only do 7 and 15 TPS respectively.
Historical price trend of Hedera
The first price data for Hedera dates back to September 19, 2019, when the price of the HBAR token was $ 0.057. However, soon after the launch, the price plummeted, first to 0.029 and then to $ 0.01. Thereafter, in early 2020, a recovery came to $ 0.03 levels, where the price remained until the end of the year, spending the whole of 2020 with only slight fluctuations.
In 2021, however, the project saw a huge change in behavior. As of January 3, its price began to rise: slow at first, but quickly recovered, driven by Bitcoin’s bull run that took the altcoin market by storm. By this time, Bitcoin had already surpassed its previous ATH of $ 20,000 and was approaching the $ 30,000 mark. By the time Bitcoin hit $ 40,000, the rest of the market was already following one of the biggest bull races ever seen in the world of finance.
In the case of HBAR, the token was up to $ 0.4 by March 15, which was the highest point in its history so far. However, $ 0.4 ended up being quite strong resistance and even managed to reject the price. The token fell to a support of $ 0.3, before returning to $ 0.4 again on March 30, 15 days later. The same thing happened again, and once again, HBAR plummeted to $ 0.3 and bounced back to $ 0.4.
This time around, the resistance came back stronger and the HBAR price tumbled to $ 0.25, having a hard time recovering. While he was working to gather momentum for another rally, mid-May came and, with it, the first major price correction. Many are still debating whether the market collapsed in May because Elon Musk announced that Tesla would no longer accept Bitcoin for its electric cars, as the company found Bitcoin mining to be too energy-intensive, which means. which is leaving a huge carbon footprint.
Believe it or not, the fact is that the market collapsed around the same time as Musk’s announcement, and prices ended up rising until July 20. Hedera’s price also dropped, this time to $ 0.2, which was believed to be its low at the time. However, on July 20, prices began to recover again, leading to an even stronger rise.
While BTC rose until November 11, when it hit its peak, HBAR’s high point was revealed on September 15, almost exactly a year ago, when the token hit the $ 0.5 price point. It did so with a massive surge that resulted in an equally massive correction, leaving it at $ 0.3 by September 29th. However, Hedera was not done yet and began to rise again, this time more steadily.
It reached $ 0.45 on Nov 12, at which time the bears finally hit the token and started pulling it down with the rest of the market. HBAR plunged to $ 0.22 by December 13, just a month after everything started, and although it saw a small recovery before Christmas, it still ended the year with a price of $ 0.22.
Price trend of Hedera in 2022
At the time, cryptocurrency users were still not entirely sure if this was a temporary price collapse like the one seen in May 2021 or if it was the start of a new crypto winter, like the one seen in 2018. days of 2022 made the situation more confusing, as cryptocurrency prices started to rise during the first five days of January. HBAR even managed to recover as low as $ 0.33 and, for a while, everyone thought the November slump was over and starting a new rise.
However, the market revealed its true nature around January 5th, when the bears grabbed the prices again, and this time there were no more doubts: the bullish run was over and the crypto winter has begun again.
By January 24, Hedera’s price had dropped to $ 0.18. Over the next few months, Hedera managed to establish a fairly strong support at $ 0.20, maintaining this level during bearish waves, and managed to venture to a resistance at $ 0.26 during calmer periods. The first of these periods came in early February, and HBAR found itself at $ 0.26 on February 7, before falling to $ 0.2 by February 22.
The situation repeated itself between the end of March and the beginning of April, but by the end of April the bear market became much more intense, pushing prices even lower. Hedera, like many other coins, saw their supports break and they sank deeper, looking for new funds.
HBAR found its at $ 0.06 and so far this level has managed to hold out all summer, supporting Hedera’s price in May, June, July and even all of August.
Now, with the arrival of September, many were hoping for a new wave, as mentioned, and the last days of August have even encouraged this belief. However, September 1 brought nothing more than another collapse to $ 0.06, but since September 2 HBAR has bounced back to $ 0.63, which is not much, but it shows that the project is willing to grow, too. with minimal opening.
Fortunately, Hedera is a project that has a greater purpose than just pumping the price of its token as high as possible and the development has continued even during the bear market. The project has also attracted a lot of attention due to its struggle to grow during the 10-month bearish we have seen so far.
Its positive performance where possible, continuous development and advanced technology have brought it to Coinbase’s attention, and recent reports have revealed that the largest stock exchange in the United States is considering listing HBAR. Meanwhile, experts have continued to point the way to Hedera, noting that it is working on building decentralized ecosystems shoulder to shoulder with projects like Avalanche and Big Eyes Coin, both of which are major players in this area.
Some have even speculated whether Hedera’s patents could lead to corporate blockchain adoption and 10 times soon, and while this is an interesting idea, at this point it is simply speculation. However, it’s encouraging, as this is positive speculation, which is good news for the project.
What will happen next?
As for what will happen next, no one can really tell. Hedera has been bullish in recent weeks, but with the arrival of September any progress he has seen towards recovery has been undone. Historically, the cryptocurrency winter may begin to weaken soon, leaving the market exhausted and neutral, a state from which it will take quite some time to recover before the next big bull run arrives.
In the end, all anyone can do now is speculate and guess, as the cryptocurrency industry remains as volatile and unpredictable as ever and there is no surefire way to say anything with confidence or any kind of guarantee.
To learn more about Solana, visit our Investing in Hedera guide.