Hedera [HBAR] is forecasted to be one of the blockchain networks poised to gain significantly from the growth of stablecoins over the next few years.
The network possesses a strategic advantage that positions it well to capitalize on opportunities related to stablecoins.
In Q4 2024, Hedera witnessed a substantial increase in on-chain activity, with Total Value Locked (TVL) skyrocketing by over $160 million.
Furthermore, there was a noticeable rise in daily on-chain transaction volume, climbing from under $1 million in early October to an average exceeding $10 million per day by December.
While these metrics indicated a surge in network utilization, they still remained relatively modest compared to other networks, particularly those with TVL and volume metrics reaching into the billions.
Nevertheless, there is a growing sense of optimism among investors regarding the future prospects of Hedera and HBAR.
Exploring Hedera’s Engagement with Stablecoins
The global market capitalization of stablecoins recently surpassed $212 billion, hitting a new record high. Projections currently indicate that the growth of stablecoin market cap will follow an exponential trajectory in the years ahead.
Forecasts suggest that this figure could surge to as high as $2.8 trillion by 2028.
Hedera may be well-positioned to leverage this growth through its association with Worldpay, a platform that facilitates transactions on the Hedera network.
A significant aspect of Worldpay’s relevance to Hedera is its role in processing transactions for major international financial entities, including Mastercard, Visa, Wells Fargo, and Bank of America.
Increased adoption of stablecoins in mainstream finance could potentially drive more transactions towards Hedera.
HBAR Gains Momentum in Bullish Trends
Following its historic All-Time High (ATH) on January 17th, HBAR exhibited limited selling pressure. It retraced slightly by around 21% to its lowest point last week before experiencing a resurgence in demand midweek.
Subsequently, it saw a 13% upswing from its lowest point of the week on January 23rd, reaching a peak of $0.354 within the past 24 hours.
Positive momentum has been building in both spot and derivatives markets, with spot flows transitioning from negative to positive, albeit remaining relatively subdued over the last two days.
Derivatives trading volume dropped to $345.17 million in the most recent 24-hour period, marking the lowest volume recorded since mid-January.
Open Interest increased by 4.65% to $421.59 million within the last 24 hours, alongside a marginal decline in Open Interest Weighted Funding Rates during the same period.
This shift indicates that the prevailing bullish sentiment has been somewhat subdued, with the limited downward pressure suggesting that investors are inclined to hold onto their assets.