Hedera Hashgraph token wavered on Tuesday as sentiment in the crypto industry waned.
Hedera Hashgraph (HBAR) was trading at $0.1900, down about 15% from its highest level this week and 50% below its high in November last year.
Fundamentals suggest that the HBAR price may rebound soon. One of the most notable is that the supply of stablecoins on Hedera has surged in recent days.
Hedera now holds $181.4 million in stablecoins, up from $20 million during the same period last year. It has also jumped from $34 million on Jan. 1. Circle’s USD Coin (USDC) has a market dominance of 99.5% in Hedera.
This growth means that Hedera has overtaken some popular layer-1 chains in the amount of stablecoins in the ecosystem. Stellar (XLM) has $180 million, while Algorand (ALGO), Cronos (CRO), and Polkadot (DOT) have $160 million, $141 million, and $102 million, respectively.
A rising volume of stablecoins on a chain is typically bullish, as it signals increasing user activity.
Another catalyst for HBAR is the rise in decentralized exchange volume. DeFi Lllama data shows that weekly volume jumped 40% to $64.4 million, bringing the cumulative total to $4.6 billion.
Hedera is also becoming a notable player in the real-world asset tokenization space. It recently launched the Asset Tokenization Studio, designed to streamline the configuration, issuance, and management of tokenized bonds and stocks.
In addition, Hedera has introduced a stablecoin studio, a consensus service, and the Hedera Token Service. The network is positioning itself as a key player in tokenization, bolstered by partnerships with firms like Google and IBM.
HBAR price technical analysis
The weekly chart shows that Hedera’s price bottomed at $0.1250 in April before rebounding above $0.20 this month. It remains above the key support level at $0.1826, the highest swing on April 22 last year.
HBAR is also trading above the 50-week moving average, while the Relative Strength Index has turned higher. As a result, the coin is likely to continue climbing, with bulls targeting the year-to-date high of $0.4032, a potential 105% gain from the current level.
