Hedera has risen fivefold in value over the past year. What is likely to happen next?
- HBAR coin price prediction: expert opinion
- Past performance of Hedera
- Hedera white paper
Lots of crypto start-ups are emerging, battling it out to become the sector’s most scalable and accessible platform. While some projects focus on sharding solutions, others look to reform the incentive problem around the unfairly weighted distribution of compensation.
Hedera uses a different approach. Launched officially in September 2019, Hedera, led by founders Leemon Baird and Mance Harmon, has developed a novel type of distributed ledger technology called hashgraph.
Designed to be an energy-efficient, faster and cheaper alternative to both Bitcoin and Ethereum, Hedera appears to have imbued investors with confidence over the past year. However, what does the future hold for the project? Before taking a deep dive into a Hedera price prediction let’s do a brief overview.
Leemon Baird, based in Dallas, is the co-founder and chief scientist at Hedera and is widely credited as the investor of the hashgraph algorithm.
Before founding Hedera, he launched a variety of companies including Swirlds and BlueWave Security. Baird completed a PhD in computer science at Carnegie Mellon University.
Mance Harmon, the CEO of Hedera, studied computer science at Mississippi State University. Harmon has more than two decades of experience in founding and leading companies. He co-founded BlueWave Security and Swirlds Inc alongside Baird.
While the technology behind hashgraph is pretty complex, whereby nodes share information with each other via a ‘gossip’ protocol, the salient point is that this new type of blockchain appears to do away with limitations that plague earlier kinds of blockchain. Indeed, if the claims made on Hedera website are accurate, the numbers seem to speak for themselves.
According to the platform’s literature, Hedera can process 10,000 transactions per second (tps), dramatically more than Bitcoin (3tps) and Ethereum 1.0 (12tps). The average fees charged by Hedera appears to be a lot lower, too. While Bitcoin charges $22.57 and Ethereum charges $19.55, Hedera’s average fees come to only $0.0001.
Hedera, which used proof-of-stake, also claims to be much more energy-efficient and sustainable than Bitcoin and Ethereum 1.0. While BTC uses a whopping 885 kilowatts per hour (kWh) and Ethereum uses 102kWh, Hedera only uses 0.00017kWh.
Hedera white paper
The white paper ‘Hedera: A Public Hashgraph Network & Governing Council’ was originally published on 13 March 2018 and is 97 pages long.
The white paper states: “The Hedera network will be governed by a council of leading global enterprises, across multiple industries and geographies.
“Its vision is a cyberspace that is trusted and secure, without the need for centralised parties with inordinate influence. Its licensing and governance model protects users by eliminating the risk of forking, protecting the integrity of the codebase, and providing open access to review the underlying software code.”
The document goes on to say: “Platform governance will be decentralised through the Hedera Governing Council, which will have a term-limited, rotating set of governing members that each have equal voting rights over key decisions relating to the platform.”
How does this information impact a hedera price prediction?
Before going any further, let us look at the past performance of the coin.
Past performance of Hedera
After its launch, HBAR coin dipped from $0.0289 on 26 September 2019 to $0.0131 on 2 February 2020 before surging to $0.0551 on 17 August 2020.
Despite falling again to $0.0332 on 2 January 2021, the price of Hedera coin began to soar later that month. The coin rose to $0.4026 on 15 March 2021 before dropping slightly to $0.3054 on 24 March 2021.
Volatility continued in April. The hedera cryptocurrency subsequently dropped to lows of $0.1586 on 20 July 2021 before surging again to record highs of $0.5059 on 15 September 2021. The price then dropped to $0.3042 on 28 September.
By mid-December the price rose again before toppling to $0.225 on 14 December. Despite significant volatility across the crypto markets, the price rose again to $0.336 on 5 January 2022.
As of 16 February, the coin is valued at $0.2491. There is a current circulating supply of 18.09 billion coins and a total supply of 50 billion HBAR coins. The project has a current market cap of around $4.5bn.
How does this data impact an HBAR price prediction for 2023? Or even a Hedera price prediction for 2025?
Let’s look at what the experts think.
HBAR coin price prediction: expert opinion
It is important when looking at predictions to remember that while they can be helpful as an indicator of which direction the price might move, they should be viewed as possibilities rather than absolutes. This is especially the case when looking at long-term forecasts, as these can sometimes be completely off the mark because of the inherent volatility of the crypto market and also the many unknowns which could impact future prices.
With this in mind, let’s look at some hedera crypto price predictions.
DigitalCoinPrice, however, thinks that Hedera will go up in the future. The hedera price prediction for 2022 is for the coin to reach $0.37 in April, an upswing of almost 50%. The site forecasts that HBAR could be worth $0.39 in 2023, increasing to $0.44 in 2024. The website’s price prediction for 2025 stands at $0.54, and the hedera price prediction for 2030 is up to $1.20.
While some analysts think it is an OK investment, others think its value could fall to zero.
It is always worth remembering that the crypto market is highly volatile and the price of all tokens and coins can go down as well as up.
Maybe, but also maybe not. The project has a lot to prove in terms of whether its novel blockchain realises its ambitions of becoming a true competitor to Bitcoin and Ethereum.
It is worth remembering that forecasts, especially long-term ones, are better viewed as indicators rather than absolutes.
Investing is a highly personal endeavour. Do your own research and try to keep up to date with any developments within the Hedera ecosystem that could boost its prospects. Always remember cryptocurrencies are highly volatile assets and that past performance is never a guarantee of future results.
Remember that your decision should be based on your attitude to risk, your expertise in this market, the spread of your portfolio and how comfortable you feel about losing money. Never invest more than you can afford to lose.