The recent fluctuations in the cryptocurrency market have highlighted the struggles faced by Hedera Hashgraph’s native cryptocurrency, HBAR. Despite a modest 5.6% increase over the past 24 hours, bringing its price to $0.1429, HBAR continues to linger below significant resistance levels. This uptick comes amid a backdrop of stagnancy in the trading activity related to Hedera’s exchange-traded funds (ETFs).
Real-time data from SoSoValue indicates total inflows into Hedera’s ETF markets have barely surpassed $82 million. This figure marks a stark contrast to the initial trading surge experienced shortly after the ETFs launched in late October. Interest has sharply waned, leading to a situation where Hedera has not seen any inflows for consecutive days.
Market analysts suggest that the subdued Wall Street appetite for HBAR may be attributed to a combination of factors, including slow ecosystem growth and prevailing geopolitical tensions. However, one silver lining emerges from an uptick in USDC usage within Hedera’s network. Recent reports show that the supply of USDC has climbed significantly, with a 23.1% increase over the past week and a 15.8% rise in just one day, resulting in a total USDC issuance of $93.3 million. This growth is particularly noteworthy given the ongoing clarity in stablecoin regulations, positioning Circle USD (USDC) as one of the most compliant stablecoins tied to the US Dollar.
According to DefiLlama’s metrics, USDC represents an overwhelming 99.7% of all stablecoin liquidity in Hedera, indicating a robust demand for stablecoin transactions within the network. The total value locked (TVL) associated with USDC on Hedera now stands at an impressive $93.3 million.
Despite the recent positive movements in USDC, questions persist regarding HBAR’s overall market performance. The cryptocurrency has struggled to maintain upward momentum due to a lack of fresh investments and trading volume, which continue to inhibit its potential growth.
Investors are left pondering whether the current price bounce signals a favorable buying opportunity for HBAR. While some might view the recent activity in USDC as a bullish indicator for the ecosystem’s utility, caution remains due to the stagnation in ETF inflows.
In summary, while HBAR displays signs of short-term buying interest alongside a rebound in USDC usage, challenges persist that could hinder its longer-term prospects. Investors are advised to monitor the sustained momentum in stablecoins as a potential bullish signal moving forward.
