The potential growth of stablecoins in the next few years could have a significant positive impact on Hedera [HBAR], positioning it as one of the blockchain networks poised to benefit the most.
Hedera possesses a strategic advantage that could enable it to capitalize on opportunities related to stablecoins.
In the fourth quarter of 2024, Hedera experienced a substantial increase in on-chain activity, with Total Value Locked (TVL) jumping by over $160 million.
During the same period, there was a notable rise in daily on-chain volume, soaring from under $1 million in early October to an average exceeding $10 million per day by December.
While there was a surge in network activity, it remained relatively low compared to other networks with TVL and volume figures reaching into the billions.
Despite this, there is growing optimism among investors regarding the future prospects of Hedera and HBAR.
Hedera Capitalizes on Exposure to Stablecoins
The global market cap for stablecoins recently hit a record high of over $212 billion, signaling substantial growth. Forecasts anticipate that this figure could skyrocket to around $2.8 trillion by 2028.
Hedera is well-positioned to potentially benefit from this growth through its association with Worldpay, a company that processes transactions on the Hedera network.
Worldpay’s significance to Hedera lies in its transaction processing services for major global financial institutions such as Mastercard, Visa, Wells Fargo, and Bank of America.
The mainstream adoption of stablecoins could lead to increased transaction volumes on the Hedera platform.
HBAR Shows Bullish Momentum
Following its all-time high on January 17th, HBAR exhibited minimal selling pressure. It experienced a modest retreat of just over 21% to its lowest price point the following week, followed by renewed demand later in the week.
The price of HBAR has already seen a 13% increase from its weekly low on January 23rd to hit a high of $0.354 in the past 24 hours.
Interest has been growing in both spot and derivatives markets, with spot flows transitioning from negative to positive, though remaining somewhat subdued in the last two days.
Derivatives volume decreased to $345.17 million in the most recent 24-hour period, marking the lowest figure since mid-January.
Open Interest rose by 4.65% to $421.59 million in the same timeframe, while Open Interest Weighted Funding Rates experienced a slight decline.
These developments indicate that while bullish demand persists, there is a trend of investors choosing to hold onto their HBAR coins rather than sell them in the current market.