Founded in 2017, Harmony is an open blockchain designed for scaling Ethereum applications and cross-chain finance. The project provides scalability through random state sharding and achieves a high processing speed with fees 100 times lower than Ethereum. Harmony supports creators with its non-fungible token marketplace and offers cross-chain asset transfers with Ethereum, Binance, and other blockchains through its secure bridges.

ONE, the project’s native utility token is used for staking, governance, and paying transaction fees. Its price has changed significantly since joining the crypto market and if you want to know why then you’re in the right place. We’ve compiled everything you need in order to get a better understanding of ONE price – as well as the factors which influence it.

Harmony Price History

Following an initial coin offering at the end of May 2019, ONE began trading at $0.01 at the start of June. It quickly rose to $0.03 in the first week, but then spent the next few months in decline, dropping below half a cent towards the end of September. There was little change for the rest of the year, and by the end of 2019, ONE was worth $0.0046, having decreased by more than half since the token’s launch.

After a fairly static January 2020, ONE price improved to $0.007 in the middle of February. A month later, however, prices bottomed out at $0.0012 following a crash of more than 50% on a single day in March. Three months of steady gains then saw ONE regain half a cent, before prices surged to a peak of $0.015 in August. ONE crashed back to below $0.005 in September and mostly traded sideways for the rest of the year. As 2020 came to a close, ONE was trading at $0.004, slightly below the year’s starting price.

Prices immediately began to improve in 2021 and had doubled by the end of January. Growth was steeper in the first half of February as ONE peaked at about $0.04, before pulling back to below $0.02 later in the month. The bullish momentum continued in March and picked up pace in the second half of the month when ONE surged past $0.10 and the Harmony market cap surpassed $1 billion for the first time.

The rally culminated in a peak on March 29 at ONE’s all-time high of $0.23, at which point the cryptocurrency had provided year-to-date gains of more than 5,300% and Harmony had a market cap of almost $2 billion. The trend reversed at that point and prices retraced by about 70% to a low of under $0.07 in April. A rebound saw ONE hit $0.20 again in May but this was immediately followed by a crash of more than 60% during a single day, after which prices dipped below $0.06. ONE improved to above $0.11 at the start of June but declined to less than $0.05 later in the month.

Analyzing Harmony Price History

[guidelink ONE] price history can be analyzed with many of the same techniques as the stock market. Technical analysis involves using various indicators while studying price charts in order to make sense of previous price movements. With ONE, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of traders buy or sell their coins on exchanges.

Fundamental analysis, on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. The project raised $23 million in its ICO and the team that founded Harmony comprises former employees of Google, Amazon, Microsoft, and Apple. The Harmony ecosystem has also grown to incorporate well over 100 projects, from decentralized applications and wallets to bridges, validators, and token standards. These could be good signs for the fundamental Harmony value.

Broader market trends have also played a role in the price history of ONE. Its surge early in 2021 wasn’t unique – the entire crypto market pumped around this time. Bitcoin was in the midst of a major bull run then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

ONE’s huge single-day drop in March 2020 came as economies and borders were closing down around the world in response to the COVID-19 pandemic. The effect of this was felt by the whole cryptocurrency sector and the entire stock market, which experienced the biggest single-day crash since 1987.

The sudden crash in May 2021 was also market-wide, affecting every single major cryptocurrency. Various contributing factors have been suggested, including comments made by Elon Musk, a crackdown by Chinese authorities, liquidations, and a healthy market correction.

The overall Harmony price trend tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Harmony (ONE)

A variety of different things can affect the price of ONE, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider cryptocurrency and global economies.

The ONE total supply will grow in the early stages of the project as inflation is used to pay staking rewards. However, issuance plus fees from transactions is set to always equal 441 million ONE per year. This means that as network usage increases, issuance decreases until it reaches zero. At that point, any increase in demand will lead to a rise in price.

Demand for ONE tokens is partly driven by the staking opportunities its Proof of Stake system provides. In order to become a validator, potential node runners must stake a certain amount of ONE, while ONE holders can also delegate their tokens to validators to participate. Rewards vary based on the amount staked, with first year yields ranging from 9% at 95% staked to 164% at 5% staked. This opportunity for passive returns could incentivize more people to buy ONE for staking.

Governance rights provide another benefit to holding ONE, allowing the community to vote on protocol level decisions and improvements. ONE is also required for paying transaction fees, creating further demand from users of the Harmony network.

More users on the Harmony network would mean both higher demand for ONE and a lower token issuance rate. This means that events that drive Harmony adoption, such as protocol improvements, new integrations, and more dApps, could therefore boost the price of ONE.

Live Harmony Value and Market Cap

The live ONE value varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given ONE’s volatility, its current price can change by a large amount in a very short space of time. The market cap of Harmony is equal to the price of ONE multiplied by the number of ONE in the circulating supply.

Harmony Price FAQ

How is the price of ONE calculated?

ONE’s price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying ONE than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of ONE different on each crypto exchange?

ONE’s price is based purely on trading as there is no standard global Harmony price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affects the price.

What will ONE be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of ONE. However, if more dApps join the Harmony ecosystem, the subsequent increase in demand and decrease in issuance could lead to a rise in ONE price.

Conclusion

The price of ONE has changed significantly since it joined the crypto market, going from lows of little more than a tenth of a cent to highs of over $0.20. Its price history has rarely been smooth, however, as ONE’s volatility has led to surges and crashes along the way.

Many different factors have played a role in determining the price of ONE, including rewards in the Proof of Stake system, the amount of transaction fees generated, and trends in the rest of the cryptocurrency market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of Harmony and cryptocurrencies!