Holochain price prediction: What is HOT?
Holochain price predictions saw a big surge last year – but can it beat the blockchain in 2022?
In this forecast
- Holochain explained
- Peer-to-peer networking
- From the Holochain whitepaper
- Use cases for Holochain
- Holochain price predictions
- Holochain price prediction: Expert opinion
- FAQs
Holochain (HOT) price predictions were all the rage in 2021, with some crypto enthusiasts expressing breathless enthusiasm for a platform that’s designed to serve as an alternative to blockchain.
So what’s next for Holochain in 2022? Has it got the potential to give major networks such as Bitcoin and Ethereum a run for their money? And could it solve the problems that established blockchains have been facing – not to mention a number of internet platforms?
Holochain explained
So what is Holochain? Blockchains such as Ethereum are buckling under the strain of congestion – overwhelmed by the sheer volume of transactions sparked by the rise of decentralised finance (DeFi), non-fungible tokens (NFTs) and bull markets.
Bottlenecks are forming because the current Ethereum blockchain is only built to process 15 transactions per second. That is nowhere near enough, considering this network handled transfers worth $1.5trn in the first three months of 2021 – though Ethereum 2.0, due to launch this year, will be able to handle 100,000 transactions per second.
There’s a great deal of interest in a Holochain price prediction because there’s a belief that this platform could perform much faster than many rivals that operate on blockchain technology.
Peer-to-peer networking
Holochain also relies on peer-to-peer networking, but the developers say it has unlimited capacity when it comes to scalability. Contrast that with Ethereum, which is currently undergoing that painstaking upgrade.
Like blockchains, applications can be run on Holochain – but crucially, it is claimed that this has no impact on network performance.
The emphasis here is on how Holochain champions distributed rather than decentralised computing. Apps on this platform don’t need a token to operate – and all of this eliminates the need for mining. Those concerned about the energy consumption and environmental impact of proof-of-work (PoW) mechanisms may have something to celebrate here.
From the Holochain whitepaper
The whitepaper describes the problems faced by other protocols in more detail: “The data-centric legacy inherited by Ethereum from the blockchain model is immediately observable in its high compute cost and difficulty in scaling.”
The new model proposed by Holochain is described as: “An agent-centric distributed generalised computing system, where nodes can still confidently participate in the system as a whole, even though they are not constrained to maintaining the same chain state as all other nodes.
“A Holochain application consists of a network of agents maintaining a unique source chain of their transactions, paired with a shared space implemented as a validating, monotonic, sharded, distributed hash table (DHT), where every node enforces validation rules on that data in the DHT as well as providing provenance of data from the source chains where it originated.”
Use cases for Holochain
Just some of the use cases that have been put forward for Holochain include social networks, community-owned iterations of sharing economy services such as Uber and Airbnb, and supply chains.
As the project explained in an April 2018 blog post:
“Other approaches to running dApps (such as blockchain) attempt to synchronise a single universal state across all participating computers at the same time. This ‘consensus’ does not scale, and is so inefficient to run, they build in a currency to pay people to run it. Holochain is millions of times more efficient – you won’t have to waste 0.5% of the planet’s electricity to achieve a mere handful of transactions per second.”
Holochain price predictions
Two other advantages that feed into Holochain price predictions for 2022 are linked to how apps built on this network can be tailored to meet the needs of everyday internet users – meaning this infrastructure can end up benefiting those who lack technical knowledge and confidence.
What’s more, ‘rapid application development tools’ mean these apps are able to hit the market quickly, eliminating the cost and bumps in the road that can exist with blockchain.
All of this isn’t to say that Holochain doesn’t have a native cryptocurrency – it does, and it’s known as HOT. The point we’re driving at here is that the use of tokens is optional.
Holochain price predictions came into sharp focus in early April 2021, when the token’s value surged dramatically. HOT had begun the year at $0.000592 but subsequently raced to $0.03157 in a little under four months. To put that into context, this capped off gains of 5,232%.
Part of the driving force behind its previous spikes may have been the revelation that the company behind Holochain was granted a US patent for the networking innovations it has developed. The open-source project said that this was a defensive move, and that the team fully intended “to share it openly within the context of the Holochain framework”.
Announcing the news, the project said:
“The patent focuses on the methods for saving, storing and retrieving data in a multi-node computing system where no single node has a comprehensive index of nodes or content managed by those nodes.”
Many cryptocurrencies have struggled since December, and HOT is no exception. Despite new on-chain developments and education programmes for the Holochain team, the long-running bear market and a marketwide crash caused the coin to plummet, and HOT has lost more than 90% of its value since its November peak.
By 18 June 2022, the coin was trading at a new 15-month low of $0.001824. However, there has been little motion since then. The coin largely traded sideways in the following weeks, closing on 31 July at $0.002259.
At the time of writing on 10 August, the token was trading at $0.00261, with a market cap of $453.8m and 173.34 billion HOT in circulation according to CoinMarketCap.
That, then, is the story so far. So what’s the HOT coin price prediction for 2022 and beyond?
Holochain price prediction: Expert opinion
A HOT coin prediction for 2022 from DigitalCoinPrice expects the price to reach $0.00347 in September and $0.00386 in December. The price is expected to be $0.00411 one year from now. The site’s Holochain price prediction for 2025 is for the coin to reach an average of $0.00498, and an average of $0.00868 in 2028. In 2030, the site suggests the coin could be worth as much as $0.0120.
Out of 26 technical indicators, eight suggest selling and 11 suggest holding, while only seven suggest buying.
WalletInvestor’s Holochain price prediction for 2022 suggests the coin could go down to $0.00143 by the end of September this year, and after that point the coin is expected to lose more value, with a one-year forecast of $0.000365.
Looking at the longer term, a Holochain price prediction for 2030 can be found at PricePrediction, which predicts an average for the year of $0.066.
FAQs
Will Holochain reach $1?
It seems unlikely that the coin will break the $1 mark within the next decade. However, price predictions are based on algorithms and past performance, and do not take into account all market conditions. Therefore, an exponential rise is always possible – but there is also a chance the project will fail.
As ever, you will need to conduct your own thorough research before making any investment decisions.
Is Holochain a good investment?
It’s important to do your own research to assess whether you believe Holochain has the potential to take on established blockchain platforms and wrestle away market share.
This project has been around for more than three years now and the current multi-million-dollar market cap does help lend it some credibility. However, this is an industry that’s plagued with uncertainty, and valuations could fall at any time.
Do your own research and always remember your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you feel about losing money.
What is the difference between Holochain and Holo?
Holochain describes itself as “a framework for creating and powering distributed applications, incorporating peer-to-peer content distribution protocol, cryptography, and hash tables”.
Meanwhile, Holo is described as “a marketplace and distributed hosting platform that allows Holochain app developers to have their applications hosted by HoloHosts, thus making them available to everyday users of the internet”.
How to mine Holochain
As we mentioned earlier, Holochain stands out from other blockchain platforms because it doesn’t depend on mining. However, there are still ways to get involved – by hosting the distributed apps on this network and ensuring that mainstream internet users can access them.
An app is in the works that can be downloaded on Linux, Windows and Mac devices, which compensates users in the form of HoloFuel.
