Metaverse fever, NFT helps increase HBAR by 40% in the week

HBAR achieved returns of 12.79%, Arweave + 10.33%, Decred + 9.7% and yearn.finance (YFI) + 7% on the past day. All of this seems to suggest that the altcoin party has begun.

Among the top 100 assets by market capitalization are the top 5 winners of the day, especially Hedera (HBAR).

With mid-cap altcoins the center of attention, will their rally continue depending on BTC on-chain and social indicators maintaining a bullish divergence?

Reason for price increase?

HBAR is up nearly 40% from the week after the HBAR Foundation entered the Metaverse field after a new partnership with MetaVRse to help develop related apps. Interest in HBAR was also sparked after the company shared a tweet that Google is ready to accept cryptocurrency for Google Cloud and that it “also has agreements with Hedera and other projects”.

Hedera is an enterprise-class public network using PoS consensus. The network’s native token HBAR has increased nearly 7 times a year to date. However, that number isn’t all that prominent when compared to other coins like MATIC, which has risen more than 100 times.

However, according to the data, on December 18, Hedera hit network usage in excess of 2K TPS – a very good number that reflects active network usage on the blockchain.

HBAR became popular after Elon Musk called for a sustainable coin. In fact, Hedera’s developer activity is growing all the time and is at an all-time high as of press time.

Source: Sanbase

While the HBAR has an attractive outlook, it is currently 46% below the September ATH of $ 0.57. So will HBAR move towards recovery and back to that level at some point?

Next stop?

As the price rises, so does HBAR’s circulating market capitalization – a good sign. Even if the Sharpe ratio is still in negative territory, it is recovering from an all-time low – a lucky sign for the price recovery.

The source: Messari

Higher HBAR trading volumes on the spot market also boosted the futures market, as the open interest (OI) in the perpetual market rose by 88.86%. In fact, over $ 477,000 worth of shorts were liquidated in December, according to Coinalyze. This means that the market is trending up at the time of writing.

HBAR, on the flip side, has flipped the support / resistance level at $ 0.30 while it was trading at $ 0.305. If price can hold an upside move above this important support, the HBAR is likely to head higher.

However, the price development of HBAR is quite volatile throughout the year. And with volatility rising again, it’s best to do your due diligence before making a decision.

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