Hedera Hashgraph Is Set to Rise as It Increases Its Use Cases

Hedera Hashgraph (CCC:HBAR-USD) could become a major potential Ethereum (CCC:ETH-USD) competitor. As it increases its user base, use cases and general market share, Hedera will slowly gain value.

Concept tokens for Hedera Hashgraph (HBAR) on a black keyboard.

Source: Shutterstock

Hedera hasn’t moved much in the past eight months. For example, earlier this year, it was at 36.69 cents as of March 17. But almost eight months later, on Dec. 1, the crypto was at 34.85 cents. So over that period, the Hedera crypto has drifted 5% lower, despite a lot of bumps in between.

For example, it spiked to more than 50 cents by mid-September. But then it tanked to 32 cents two different times and had barely risen higher as of Dec. 1. I suspect investors might be growing anxious or impatient to see whether Hedera Hashgraph and its crypto can pull in some big news.

Hedera Hashgraph Features

One advantage the Hedera Hashgraph blockchain has is that it’s not built upon Ethereum (CCC:ETH-USD). It has its own code that can close blockchain transactions at high speeds and low costs. This gives the crypto a degree of independence that is not common with many other cryptocurrencies.

For example, Hedera has a unique distributed ledger technology known as hashgraph. Its advantages are speed, cost, and scalability. It can perform more than 10,000 transactions per second, which is better than the five to 20 transactions per second seen with many popular proof-of-work (PoW)-based blockchains.

In addition, Hedera uses a consensus service that acts as a layer of trust for a network or app that needs a secure, verifiable log of events.

But so far, there are not a lot of use cases for the Hashgraph blockchain technology. Granted, as I pointed out in my last article, there is the possibility that Hedera can be useful for creating and configuring non-fungible tokens (NFTs). If it can gain some market share in this application and use case, then Hedera could gain value.

For example, according to DefiLlama, Hedera does not rank in the top 73 chains in terms of Total Value Locked (TVL). From what I can tell, it has zero TVL — but I could be wrong, since there might be other sites that measure its TVL. To put it another way, if a lot of apps were using Hedera, it would have shown up in the TVL statistics.

What to Do With Hedera Crypto

The company seems to be making better progress with its TVL recently. Looking through the News tab of the main Hedera website shows the blockchain company is making new announcements almost weekly. These reveal collaborations or highlight users building apps on the Hedera Hashgraph network.

I had been wondering if developers might not want to learn a new language or computer blockchain script just for one application use case. But the News tab on Hedera Hashgraph’s site shows there are plenty of new users and developers working with it.

However, I can’t understand why this hasn’t shown up in the TVL statistics for Hedera and the HBAR token. I suspect it may take some time for these new apps and use cases to bring in new deposits and people using the Hedera Hashgraph network. Over time, I suspect this will raise the value of the Hedera token.

Therefore, this could provide an opportunity for investors right now. Buying into Hedera before it becomes popular and while the token is well off of its highs could be a good move. As new use cases and users increase the TVL for Hedera Hashgraph and it shows up in the stats, the value of its crypto will slowly rise.

On the date of publication, Mark R. Hake did not hold any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.


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