Hedera price prediction: Will investors flock?
Hedera has risen fivefold in value over the past year. What is likely to happen next?
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 an energy-efficient, faster and cheaper alternative to both Bitcoin and Ethereum, Hedera appears to have imbued investors with confidence over the past year. However, what does the future hold for the project? Before taking a deep dive into a Hedera price prediction let’s do a brief overview.
Leemon Baird, based in Dallas, is the co-founder and chief scientist at Hedera and is widely credited as the investor of the hashgraph algorithm.
Before founding Hedera, he launched a variety of companies including Swirlds Inc and BlueWave Security. Baird completed a PhD in Computer Science at Carnegie Mellon University.
Mance Harmon, the 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 Inc alongside Baird.
While the technology behind Hashgraph is pretty complex, whereby nodes share information with each other via a “gossip” protocol, the salient point is that this new type of blockchain appears to do away with limitations that plague earlier kinds of blockchain. Indeed, if the claims made on 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), dramatically more than Bitcoin (3tps) and Ethereum 1.0 (12tps). The average fees charged by Hedera appears to be a lot lower, too. While Bitcoin charges $22.57 and Ethereum charges $19.55, Hedera’s average fees come to only $0.0001.
Hedera, which used proof-of-stake, also claims to be much more energy efficient and sustainable than Bitcoin and Ethereum 1.0. While BTC uses a whopping 885 kilowatts per hour (kWh) and Ethereum uses 102kWh, Hedera only uses 0.00017kWh.
How does this information impact a Hedera price prediction?
Before going any further, let us look at the past performance of the coin.
Past performance of Hedera
After its launch, 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 began to soar later that month. The coin rose to $0.4026 on 15 March 2021 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 2021 before surging again to record highs of $0.5059 on 15 September 2021. The price then dropped to $0.3042 on 28 September. By mid-December price rose again before toppling to $0.225 on 14 December. Despite significant volatility, the price rose again to $0.3259 on 4 January 2022.
Hedera stood at $0.2644 on 10 January 2022. There is a current circulating supply of 18.63 billion coins and a total supply of 50 billion HBAR coins. The project has a current market cap of $4.94bn.
Hedera has surged more than fourfold over the past year, though it has lost 16% of its value in the past 14 days, according to Coin Gecko.
How does this data impact a HBAR price prediction for 2023? Or even a Hedera price prediction for 2025?
Let’s look at what the experts think.
Hedera 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, they should be viewed as possibilities rather than absolutes. This is especially the case when looking at long-term forecasts, as these can sometimes be completely off the mark because of the inherent volatility of the crypto market and also the many unknowns which could impact future prices.
With this in mind, let’s look at some Hedera crypto price predictions.
WalletInvestor, in a very pessimistic Hedera coin price prediction, thinks Hedera could drop to $0.0166 in one year’s time, and so does not recommend investors to put money into it.
Gov.capital, in an even more dismal Hedera coin price prediction, has an estimated Hedera price prediction for 2022 of $0.
DigitalCoinPrice, however, thinks that Hedera will go up in the future, forecasting that HBAR could be worth $0.4121 in 2023, before increasing to $0.4557 in 2024. The website’s Hedera price prediction for 2025 stands at $0.577.
While some analysts think it is an OK 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.
Maybe, but also maybe not. The project has a lot to prove in terms of whether its novel blockchain realises its amibitions 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.
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.
Remember, investing can be risky, and it is important never to invest more money than you can afford to lose.