Hedera (HBAR) is on the rise following a spike in new account creation. While the overall market recovery is driving the HBAR price higher, the asset also reflects the project’s organic growth. The network is increasing the number of transactions and active addresses. This growth is long-term and mostly driven by DeFi. However, in the short term, it was also reflected in the sudden increase in users creating new addresses.
Active wallets on the Hedera network have increased, largely driven by momentum from DeFi projects. The last two quarters have also seen growth from NFT holders. The process for users to create a new address consists of a complex process that allows businesses to create 100 wallets in bulk using BitGo.
In recent months, alternative platforms and blockchains have been the biggest beneficiaries of DeFi’s return. Hedera hosts decentralized markets and lending protocols that expand to multiple chains, such as Pangolin DEX. While the value of the network locked in DeFi is limited, there was some growth about six months ago. Decentralized trading and liquidity mining brought the project to the forefront due to their ambition to create a global impact in financial and payment systems rather than their long-term goals.
Recently, Hedera announced partnerships with projects aimed at transforming finance. Hedera, along with Algorand, Ripple, XRPL Labs, Constellation and Casper, will form the Decentralized Recovery Alliance (DeRec).
Hedera Aims to Develop Real World Applications
Hedera has definitely benefited from the comeback of DeFi and the 2024 bull market. However, the project has long-term goals and is aggressively trying to expand its uses. A tool to implement Hedera technology is being made available to application developers through a new Beta program. Recently, projects like Vayana Official, Inveniam and FreshSupply have been approved. These projects will increase the adoption of blockchain-based finance and operate at the intersection of traditional payments and tokenization.
Another development direction of Hedera is the Internet of Things (IoT). While IoT projects in the crypto space are often seen as empty promises, Hedera has the technology to handle the high load of microtransactions. Hedera also announced the Neuron World Beta program, which offers the opportunity to build and test sensors for everyday objects.
Neuron World is an open source project looking for teams to implement physical IoT infrastructure. With this new source of data and microtransactions, Hedera claims to achieve DePIN status and real-world microtransactions.
Is HBAR Entering a Longer Price Rally?
Hedera has always continued its efforts to grow its community and keep its visibility high. The growth of DeFi on the network has helped HBAR rally from bear market lows. HBAR is trading at $0.11, having rebounded from lows of $0.09, but is still far from its monthly high of $0.17. HBAR is relatively volatile and could touch its monthly lower range again, but traders are waiting for the next breakout.
