Hedera price prediction: Will investors flock?
The overall crypto market has been on a downturn lately, so what might happen to Hedera?
- Hedera whitepaper
- Past performance of Hedera
- HBAR coin price prediction: Expert opinion
Lots of crypto start-ups are emerging, battling it out to become the sector’s most scalable and accessible platform. While some projects focus on sharding solutions, others look to reform the incentive problem around the unfairly weighted distribution of compensation.
Hedera uses a different approach. Launched officially in September 2019, Hedera, led by founders Leemon Baird and Mance Harmon, has developed a novel type of distributed ledger technology called ‘hashgraph’.
Designed to be a faster, cheaper, energy-efficient alternative to both Bitcoin and Ether, Hedera appears to have imbued investors with confidence over the past year. But what does the future hold for the project?
Before taking a deep dive into a Hedera price prediction, let’s have a quick recap of the HBAR story so far.
Leemon Baird, based in Dallas, is Hedera’s co-founder and chief scientist, and is widely credited as the inventor of the hashgraph algorithm. Before founding Hedera, he launched a variety of companies, including Swirlds and BlueWave Security. Baird completed his PhD in computer science at Carnegie Mellon University.
Mance Harmon, CEO of Hedera, studied computer science at Mississippi State University. Harmon has more than two decades of experience in founding and leading companies. He co-founded BlueWave Security and Swirlds alongside Baird.
While the technology behind hashgraph – whereby nodes share information with each other via a so-called gossip protocol – is pretty complex, the salient point is that this new type of blockchain appears to do away with many of the limitations that plague earlier kinds of blockchain. Indeed, if the claims made on the Hedera website are accurate, the numbers seem to speak for themselves.
According to the platform’s literature, Hedera can process 10,000 transactions per second (tps), which is dramatically more than either Bitcoin (3tps) or Ethereum 1.0 (12tps). The average fee charged by Hedera appears to be a lot lower, too. While Bitcoin charges $22.57 and Ethereum charges $19.55, Hedera’s average fee is only $0.0001.
Hedera, which uses a proof-of-stake (PoS) protocol, also claims to be much more energy-efficient and sustainable than Bitcoin and Ethereum 1.0. While BTC uses a whopping 885 kilowatt-hours (kWh) and Ethereum uses 102kWh, Hedera only uses 0.00017kWh.
The Hedera: A Public Hashgraph Network & Governing Council whitepaper was originally published on 13 March 2018, and is 97 pages long.
The whitepaper states: “The Hedera network will be governed by a council of leading global enterprises, across multiple industries and geographies. Its vision is a cyberspace that is trusted and secure, without the need for centralised parties with inordinate influence. Its licensing and governance model protects users by eliminating the risk of forking, protecting the integrity of the codebase and providing open access to review the underlying software code.”
The document goes on to say: “Platform governance will be decentralised through the Hedera Governing Council, which will have a term-limited, rotating set of governing members that each have equal voting rights over key decisions relating to the platform.”
How does this information impact a Hedera coin price prediction for 2022 and beyond? Before going any further, let us look at the past performance of the coin.
Past performance of Hedera
After its launch, the HBAR coin dipped from $0.0289 on 26 September 2019 to $0.0131 on 2 February 2020, before surging to $0.0551 on 17 August 2020.
Despite falling again to $0.0332 on 2 January 2021, the price of Hedera coin (HBAR) began to soar later that month. The coin rose to $0.4026 on 15 March before dropping slightly to $0.3054 on 24 March 2021.
Volatility continued in April. The Hedera cryptocurrency subsequently dropped to lows of $0.1586 on 20 July before surging again to record highs of $0.5059 on 15 September. The price then dropped to $0.3042 on 28 September 2021.
By mid-December, the price rose again before tumbling back down to $0.225 on 14 December 2021. Despite significant volatility across the crypto markets, the price rose again to $0.3396 on 5 January 2022.
February saw some positive price movements and Hedera began trading above its initial launch price, but these values were not maintained and on 28 February 2022, the coin was valued at around $0.23.
On 10 March 2022, the HBAR Foundation, which drives the development of the Hedera network by providing grants and resources to developers, launched a $100m fund for sustainable ventures. Further protocol developments were announced on 22 March, when Hedera announced a partnership with TYMLEZ.
A blog post explained: “TYMLEZ is a sustainability-focused enterprise-grade solutions provider that deploys leading software applications that leverage blockchain technology. TYMLEZ aims to be the pre-eminent Hedera partner in Australia to track and trace ESG-related data for ongoing reporting. TYMLEZ’s plan is to implement a full ESG compliance reporting platform using tokenisation of carbon as the primary accounting unit.”
The coin closed out March at $0.2356. Despite numerous on-chain developments, the prolonged bear market left its mark on HBAR, and by 13 July 2022, the token was trading at $0.05867, a new 18-month low. However, there has since been some progress and as of 23 August 2022, the token is trading at $0.06665.
There is a current circulating supply of 21.08 billion coins and a total supply of 50 billion HBAR coins. The project has a current market capitalisation of over $1.4bn, making it the 41st largest crypto by market cap.
How does this data affect the Hedera price prediction for 2022? Let’s look at what the forecasters think.
HBAR coin price prediction: Expert opinion
It is important, when looking at predictions, to remember that while they can be helpful as an indicator of which direction the price might move in, they should be viewed as possibilities rather than absolutes. This is especially the case when looking at longer-term forecasts, as these can sometimes be completely off the mark, thanks to both the inherent volatility of the crypto market and the many unknowns that could impact future prices.
With this in mind, let’s look at some Hedera crypto price predictions.
WalletInvestor, in a bearish Hedera coin price prediction, predicts that HBAR will continue its downward trend, dropping below the $0.02 mark in one year’s time.
A more positive sentiment is provided by DigitalCoinPrice. The site makes an HBAR price prediction for 2022 that suggests the coin will reach $0.0903 in September and $0.0928 in December. The site forecasts that HBAR could be worth an average of $0.10 in 2023 and 2024. Its Hedera price prediction for 2025 stands at $0.13.
Another bullish sentiment can be found at CryptoNewsZ, which forecasts: “The road ahead is full of petals provided the investor confidence keeps booming, resulting in a major push to the price, taking it to cross all barriers, scaling to $0.44 in 2022.”
The same site’s Hedera price prediction for 2030 forecasts a value of around $1.
Is Hedera a good investment?
While some analysts think it is a reasonable investment, others think its value could fall to zero.
It is always worth remembering that the crypto market is highly volatile, and the price of all tokens and coins can go down as well as up.
Will Hedera go up?
Maybe, but also maybe not. The project has a lot to prove in terms of whether its novel blockchain can realise its ambition of becoming a true competitor to Bitcoin and Ethereum.
It is worth remembering that forecasts, especially long-term ones, are better viewed as indicators rather than absolutes.
Should I invest in Hedera?
Investing is a highly personal endeavour. Do your own research and try to keep up to date with any developments within the Hedera ecosystem that could boost its prospects. Always remember that cryptocurrencies are highly volatile assets and that past performance is never a guarantee of future results.
Remember that your decision should be based on your attitude to risk, your expertise in this market, the spread of your portfolio and how comfortable you feel about losing money. Never invest more than you can afford to lose.