Hedera is a fully open-source, public network and governing body for building and deploying decentralized applications. The platform provides three main services to its users: smart contracts, consensus, and token services.
Hedera’s technology is based on a unique algorithm, hashgraph, which has proven more reliable than traditional blockchain technologies. Hashgraph has near-perfect efficiency in bandwidth usage and, consequently, can process hundreds of thousands of transactions per second across multiple networks.
According to BitcoinCasinos.com, Hedera’s circulating market cap spiked 108% QoQ from $940 million to $2 billion between Q1’22 and Q1’23, with a further steady increase in the number of HBAR coins trading on crypto exchanges.
BitcoinCasino’s financial analyst Edith Reads commented on the data, “The market capitalization increase was primarily driven by increased investment and enthusiasm from institutional investors and developers. Since its launch in 2018, Hedera has gained significant traction as a go-to blockchain platform for businesses and governments. This was further buoyed by the introduction of new partnerships in 2022, which has enabled Hedera to become a viable option for business use cases.”
What Contributed To Hedera’s Success In Q1’23?
One of the key drivers of Hedera’s growth in Q1’23 was the increasing demand for the company’s native cryptocurrency, HBAR. The price of HBAR has been increasing steadily over the past few months, reflecting the growing interest in the platform. As more people buy and hold HBAR, the circulating volume of the cryptocurrency increases, which drives up the price.
During the quarter, about 5 billion HBAR was released into circulation to develop Hedera’s ecosystem and independent initiatives, contributing to the surge in Hedera’s market cap.
Tech Giant Dell Joins Hedera’s Governing Council
Hedera has included more partners, the most recent partner being the Digital Chamber of Commerce, a trade association representing the blockchain industry in the United States. This partnership helped to promote the adoption of blockchain technology and raise awareness of Hedera’s platform among businesses and policymakers, driving Hedera’s success in this quarter.
Dell has also recently joined Hedera’s governing council, which notably resulted in an increase in popularity for crypto users.
The Hedera Consensus Service, used for monitoring internet-related activities, time stamping, and progressive organization of events, has seen massive growth in the last three months. The growth is attributed to the introduction of staking and the integration of Avery Dennison’s platform with Hedera’s. The increase in transaction volume was majorly contributed by the consensus service, with the active accounts increasing ten folds.
The DeFi platforms on Hedera have also caused the total value to increase by 52% in the last quarter, and the launch of Pangolin DEX significantly contributed to this success. The total value locked, TVL, currently stands at $36 million, making Hedera earn the trust of many users and developers.
Overall, Hedera’s strong performance in Q1’23 is a testament to the strength and potential of its platform. With its fast, secure, and scalable technology and growing network of partnerships and collaborations, Hedera is well-positioned to continue growing and expanding its reach in the years to come.