Crypto Quill

Hedera HBAR, the native cryptocurrency of the Hedera Hashgraph network, has soared to new heights in the fourth quarter of 2023, reaching a market capitalization of $2.9 billion and a daily transaction volume of 164 million. The impressive performance of the open-source, proof-of-stake blockchain network has outpaced the overall crypto market growth and showcased its potential as a leader in the decentralized economy.

Hedera HBAR Grows by 211% Year-on-Year

According to a recent report by Messari, a leading provider of crypto data and research, Hedera HBAR has experienced a remarkable growth in the fourth quarter of 2023, increasing its circulating market cap by 78% quarter-over-quarter and 211% year-on-year. This growth rate has surpassed the crypto market average of 54% quarter-over-quarter and 190% year-on-year, indicating Hedera’s growing influence and adoption.

The report attributes the success of Hedera HBAR to several factors, including the network’s scalability, security, and governance. Hedera Hashgraph is a distributed ledger technology (DLT) that uses a novel consensus algorithm called hashgraph, which claims to offer faster, cheaper, and more efficient transactions than traditional blockchain platforms. Hedera also boasts a global enterprise governing council, composed of 39 leading organizations from various industries and regions, that oversees the network’s development and operations.

Hedera Network Revenue Increases by 59% Quarter-over-Quarter

The Messari report also reveals that the Hedera network’s revenue has witnessed a substantial 59% quarter-over-quarter increase, amounting to $1.6 million in the fourth quarter of 2023. The main driver of this revenue growth was the Hedera Consensus Service (HCS), which accounted for 86% of the total revenue. HCS is a service that allows clients to send messages to the network and achieve consensus on their order and timestamp, enabling various use cases such as decentralized applications (DApps), tokenization, and audit logs.

The report also notes that the revenue generated from the Hedera Token Service (HTS) and the Hedera Smart Contract Service (HSCS) contributed approximately 14% of the total revenue, demonstrating a healthy distribution of revenue streams. HTS is a service that enables users to create and manage custom tokens on the Hedera network, while HSCS is a service that allows users to deploy and execute smart contracts on the network.

Hedera Network Achieves Record-Breaking Transaction Volume

One of the most impressive metrics that the Messari report highlights is the transaction volume of the Hedera network, which reached a new record for the sixth consecutive quarter, with an average of 164 million transactions per day in the fourth quarter of 2023. This represents a 66% quarter-over-quarter and a staggering 1090% year-on-year increase. The report states that the Hedera Consensus Service was the primary driver of this activity, accounting for 99% of all transactions on the network.

The report also mentions that the Hedera network has seen a significant growth in the number of decentralized exchanges (DEXs) that use its services, such as HederaSwap and HederaDex. These DEXs allow users to trade HBAR and other tokens on the Hedera network without intermediaries, offering lower fees, faster settlement, and higher security. The report estimates that the DEX trading volume on the Hedera network skyrocketed by 164% quarter-over-quarter, reaching $12.8 million in the fourth quarter of 2023.

Hedera Network Reports High Staking and Total Value Locked

Another metric that the Messari report showcases is the staking and total value locked (TVL) of the Hedera network, which reflect the network’s security and utility. Staking is the process of locking up HBAR tokens to support the network’s consensus and governance, while TVL is the amount of value that is locked in smart contracts or DApps on the network.

The report states that the Hedera network reported 28 billion HBAR staked in the fourth quarter of 2023, representing 85% of the circulating and 56% of the total supply. This indicates a high level of network participation and security, as well as a low inflation rate. The report also notes that the Hedera network’s TVL demonstrated positive growth, reaching $64 million by the end of 2023, reflecting a significant year-on-year increase of 169%. The TVL denominated in HBAR reached 733 million, indicating a 16% quarter-over-quarter and year-on-year increase.

Hedera HBAR Continues to Shine in 2024

The Messari report concludes that Hedera HBAR has shown remarkable performance in the fourth quarter of 2023, outperforming the crypto market and showcasing its potential as a leader in the decentralized economy. The report also anticipates that Hedera HBAR will continue to shine in 2024, as the network plans to launch new features and services, such as the Hedera Wallet Snap, the Hedera NFT Service, and the Hedera EVM Service. These features and services are expected to enhance the network’s functionality, interoperability, and innovation, attracting more users, developers, and enterprises to the Hedera ecosystem.