Hedera Hashgraph doesn’t have much appeal in a sea of ​​competition


Hedera Hashgraph (CCC:HBAR-USD) is gaining ground lately, and like almost all other cryptocurrencies, it is inherently volatile.

Source: Shutterstock

The most recent news about moving prices concerns the company’s investment in its own growth.

Hedera Hashgraph is not yet a widely known name in the cryptocurrency space, but that could change.

As I mentioned, the project is not as widely discussed as many others in the crypto space. Let’s start by understanding why its price movement probably plays a big role in this truth.

Hedera Hashgraph has grown significantly in 2021. However, it just hasn’t taken off with the explosive growth seen in other cryptocurrencies. This probably explains why it makes much less headlines than some of its competitors.

Compare with Dogecoin (CCC:DOGE-USD) to understand what I mean. HBAR and DOGE have traded between 15 cents and 70 cents in the past few months. They are therefore comparable on the basis of pure cost.

Still, Dogecoin is much better known than Hedera Hashgraph although the latter arguably deserves to be just as popular. The difference is simple. While the price of Hedera Hashgraph has increased 1000% since the start of the year, this is not the more compelling growth story of the two. Dogecoin has risen by around 4,600% over the same period.

Investors look for growth in the cryptocurrency space first. Then, they seek to understand the underlying projects and their usefulness.

Since we already know that Dogecoin was created as a joke and has little to no use, this raises the question of the usefulness of Hedera Hashgraph.

A little undifferentiated

The more you read about Hedera Hashgraph, the more he appears as a competitor in a sea of ​​similar offers.

It is a public network that allows individuals, businesses and institutions to create decentralized applications (DApps).

Like all of its competitors, it claims to be designed to be a fairer, more efficient system that improves the performance of those it seeks to supplant. Pretty classic stuff. Also quite unconvincing.

HBAR tokens power the creation of smart contracts, storage and transactions. This, too, is pretty standard. It’s hard to guess where Hedera Hashgraph may be heading in terms of price, but that’s ultimately what investors are interested in.

For better or for worse, potential investors will be swayed by forecasts of future growth in the cryptocurrency space.

The good news is that growth is certainly expected, but it might not be enough to attract investment in Hedera Hashgraph.

Coinpedia expects the HBAR coin to hit $ 1.23 by the end of the year based on current sentiment. This same prediction indicates a wide price window between $ 3.98 for the high end and 68 cents for the low end.

Another prediction, that of Wallet Investor, suggests much lower growth. His analysis indicates price levels of 63 cents in one year and only $ 1.70 five years later.

Such price predictions are notorious and probably not much more than a guess. The best that can be said is that growth is anticipated, but that is generally true for cryptocurrency.

But Hedera has one thing to do.

Ecosystem development

Hedera Hashgraph is under development fueled by investment. The project’s governing body, Hedera’s board of directors, recently announced that it has allocated 20% of the HBAR offering (worth $ 4.5 billion) to the development of its ecosystem.

“The foundation will oversee the administration and development of the Hedera ecosystem by providing grants to developers, startups and other organizations with the aim of expanding the network through products such as DeFi, NFT, CBDC and iGaming, “the statement read.

I would suggest sitting this one down. It doesn’t seem like there is enough interesting news coming out of the company at this time. The truth is, investors are likely to remain interested in larger projects with greater traction.

Maybe Hedera Hashgraph will grow into something big, but it’s hard to see why right now.

At the time of publication, Alex Sirois had (neither directly nor indirectly) positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.

Alex Sirois is an independent contributor to InvestorPlace whose personal equity investing style focuses on long-term, buy and hold stock selections that create wealth. Having worked in multiple industries, from ecommerce to translation to education and using his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.


Comments are closed.