Hedera (HBAR) achieved significant growth in Q4 2023, outperforming the crypto market. Circulating market cap and revenue increased by 78% and 59% QoQ, respectively. Despite declining addresses, transaction volume reached a record high, with 164 million daily average transactions. DEX trading volume surged 164% QoQ, and stablecoin market cap grew by 73%.
Our analysis of the situation
Hedera (HBAR) has confidently surged ahead in the final quarter of 2023, boasting remarkable growth and performance that eclipses the broader crypto market. A recent report by Messari has shed light on the astounding strides made by the open-source Proof-of-Stake (PoS) blockchain network, demonstrating an exceptional trajectory that has caught the eye of industry enthusiasts.
During Q4 2023, Hedera's circulating market cap saw a staggering 78% quarter-over-quarter (QoQ) surge, catapulting to an impressive $2.9 billion and outpacing the overall crypto market, which only managed a 54% growth rate. These figures underscore the burgeoning influence and impact of Hedera in the digital asset landscape, with a remarkable year-on-year (YoY) change of 211% for HBAR, showcasing the network's unmistakable progress and rising adoption.
The network's revenue generation experienced a substantial 59% QoQ increase, hitting $1.6 million in Q4 2023, largely fueled by a robust 66% QoQ surge in transactions, a momentum bolstered significantly by the Hedera Consensus Service. Notably, approximately 14% of the total revenue stemmed from Token and Smart Contract Services, illustrating a healthy distribution in Hedera's revenue streams.
With a fixed total supply of 50 billion HBAR, Q4 2023 saw a significant 67% of the total supply, amounting to 33.6 billion HBAR, in circulation. The Hedera Treasury Management Report anticipates an additional 10% of the total supply to be unlocked in Q1 2024, including new ecosystem grants, setting the stage for continued growth and evolution.
Despite a decline in the number of addresses in Q4 2023, the network witnessed substantial year-on-year growth, with active addresses climbing 90% and new addresses witnessing a 123% increase. This is a testament to the enduring appeal and expanding community engagement within the Hedera network.
In a display of formidable prowess, the Hedera Network achieved a new milestone in transaction volume for the sixth consecutive quarter, boasting an impressive daily average of 164 million transactions in Q4 2023, driven predominantly by the Hedera Consensus Service, which accounted for 99% of all network transactions.
In an entirely different realm of success, the network reported a remarkable 164% QoQ surge in the decentralized exchange (DEX) trading volume, reaching an impressive $1.3 million, with SaucerSwap leading the charge in DEX trading activity, marking an all-time high.
Entities such as Swirlds and Swirlds Labs significantly contributed to the staking landscape, with a reported 28 billion HBAR staked, reflecting 85% of the circulating and 56% of the total supply. The Hedera network's Total Value Locked (TVL) also depicted positive growth, culminating in an impressive $64 million by the end of 2023, amidst a significant year-on-year increase of 169%.
Hedera’s stablecoin market cap soared by an astounding 73% QoQ, reaching a total of $6.3 million by year-end, with Circle’s USDC standing as the predominant stablecoin available on the network. Hedera’s rank in the stablecoin market cap among blockchain networks rose by four spots QoQ, solidifying its position in this segment.
Under current market conditions, the price of HBAR stands at $0.0736, reflecting substantial growth in the past 24 hours with a 5% increase.
The Hedera network has undeniably carved its path to prominence, making a resounding statement in Q4 2023 and positioning itself as a force to be reckoned with in the ever-evolving digital asset landscape.
[Featured image from Shutterstock, chart from TradingView.com]
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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