Founded in 2018 by Dr. Leemon Baird and Mance Harmon, Hedera is a public network that uses a hashgraph consensus in order to settle transactions. This gives it great speed and very low transaction costs. The initial coin offering (ICO), which offered the HBAR token at a low cost, has proven to be lucrative for early investors.
Here, we present a HBAR price prediction for 2022, examining price movement and other various factors to determine where the price will go in the near future.
In this guide:
What is Hedera (HBAR)?
Hedera is a public blockchain network that allows users to develop decentralized applications (DApps). It aims to solve numerous other issues which hamper other such platforms, such as high transaction fees and slow performance.
To the contrary, Hedera can process up to 10,000 transactions per second at an average cost of $0.0001. So far, it has processed more than 1.75 billion transactions in total.
Hedera uses a novel variation of a proof-of-stake (PoS) consensus called ”hashgraph.” The algorithm is extremely efficient since it adds only a minimal amount of overhead bandwidth to achieve consensus, thus not putting any to waste.
Hashgraph consists of a rotating governing council of 39 organizations that take part in 11 different industries. Since Hedera uses a PoS consensus, all nodes are managed by either Hedera or members of the governing council. Nodes are compensated through three main types of fees:
- Node fee
- Network fee
- Service fee
The native token for the platform is HBAR. There is a maximum supply of 50 billion tokens. According to the HBAR whitepaper, a third of these tokens will be in circulation by 2025. Roughly 55% of the entire supply is expected to be held by the Hedera treasury.
The token fuels Hedera services such as smart contracts and transactions, while also helping keep the platform secure.
HBAR price analysis
HBAR’s price has been falling since reaching an all-time high of $0.57 on Sept. 16. The high represented an alleged breakout above the $0.42 horizontal area. However, the token has fallen below it since and broke down from an ascending support line (red icon) on Nov. 17. This greatly accelerated the rate of decrease.
So far, HBAR has decreased by 60% since the aforementioned all-time high price. It is currently attempting to initiate a bounce at the 0.786 Fib retracement support level at $0.23. This is also a horizontal support area.
HBAR price prediction 2022
The first upward movement for HBAR began in Jan. 2020. The token increased by 800% in only 43 days. Afterwards, it was corrected for a period of 317 days.
The second upward movement began in Jan. 2021, and the token increased by 1450% in 81 days. Following this, it began another long corrective period, which has so far lasted for 302 days. While HBAR did reach a new all-time high on Sep. 21, the movement leading to it looks corrective.
Therefore, we have seen two swift upward movements followed by long corrective periods.
So, a movement of nearly 1000% would be required from the current price in order for HBAR to reach the resistance line of this channel near $3. The magnitude of the increase would be in line with both previous upward movements.
What makes Hedera unique?
The most interesting aspect about the Hedera platform is its consensus algorithm. In addition to this, it offers three main services:
- A token service that allows users to configure and mint non-fungible tokens
- Smart contract tools that allow users to build DApps
- Decentralized file storage services with various features, such as controlled mutability, proof-of-deletion, and time-based file expiry
Frequently asked questions
Is HBAR a good investment?
While there are numerous blockchains that allow users to build smart contracts, HBAR is unique because of its consensus. Whether or not this makes it a good investment is open to debate, but generally speaking, unique networks are often worth at least looking at.
What is HBAR currently worth?
HBAR is currently worth $0.26. It reached an all-time high price of $0.57 on Sep. 16.
Will HBAR be on Coinbase?
Currently, HBAR is not supported by Coinbase.