Hedera Hashgraph (HBAR) describes itself as the trust layer of the internet. Owned and governed by some of the world’s leading organizations, Hedera uses a distributed ledger technology (DLT) it calls a Hashgraph to provide a decentralized public network that goes beyond blockchain. The consensus and scalability of the technology provide an environment for developers to build fast, fair, and secure applications. As well as smart contracts, Hedera Hashgraph also offers a token service, a consensus service, a file service, and atomic swaps.

The network’s native cryptocurrency, HBAR, has a dual role. It is used as fuel to power decentralized applications and to protect the network through proof-of-stake. Its price has been through some interesting changes since HBAR launched, and if you want to know why then you’re in the right place. We’ve compiled everything you need to get a better understanding of Hedera Hashgraph price – as well as the factors which influence it.

Hedera Hashgraph Price History

HBAR was sold to investors through an initial coin offering (ICO) in August 2018. The cryptocurrency eventually hit the market with the launch of the Hedera mainnet in September 2019. It quickly fell from its ICO price of $0.12 and was worth less than $0.04 by the end of the first month. The rest of the year showed a similar downward trajectory, with HBAR steadily declining to $0.01 by the end of 2019.

After a fairly stationary January 2020, a sudden surge in the middle of February took prices up to a peak of over $0.08. This was short-lived, however, as HBAR soon fell to a low of under $0.02 following a crash of 46% on a single day in March. From there, prices recovered slightly, making some steady gains until reaching a high of $0.06 in August. The trend then reversed as HBAR dropped back to $0.03 in September. It was still trading at this level by the end of the year.

The rally got started almost immediately in 2021, as HBAR surged above $0.12 for the first time in January, before pulling back to $0.08 at the end of the month. February was taken up by another surge followed by a pullback at the end of the month – this time prices reached a high above $0.16 and then returned to $0.11. February was also the month that the market cap of Hedera Hashgraph surpassed $1 billion for the first time. 

Price growth became much steeper in March as HBAR soared to its all-time high of $0.46, at which point the Hedera Hashgraph market cap was over $3 billion. This was followed by a 39% pullback and a couple of attempts to rally which didn’t have the momentum to break HBAR’s previous high. April and May were more bearish, with a sudden 36% crash in May taking prices as low as $0.15.

Analyzing Hedera Hashgraph Price History

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

Fundamental analysis (FA), on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. Hedera Hashgraph raised $100 million in its ICO and is governed by leading organizations such as Google, IBM, Boeing, EDF, and University College London. This could be a good sign of the project’s fundamentals.

Broader market trends have also played a role in HBAR’s price history. Its surge at the start of 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.

HBAR’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.

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

The overall price trend of HBAR 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 Hedera Hashgraph (HBAR)

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

HBAR has a capped max supply of 50 billion, making it a scarce asset, like Bitcoin. Hedera’s gradual distribution schedule, which will see only about a third of the max supply unlocked by 2025, should prevent the HBAR market from becoming overly diluted. If demand for the token grows at a faster rate than the supply, its price will rise.

One source of demand for HBAR will be for securing the proof-of-stake network. Staking and proxy staking HBAR mean earning a share of transaction fees, which could incentivize more people to buy and stake HBAR. There will also be demand for HBAR from developers, who require it to pay for network services such as making transactions, managing fungible and non-fungible tokens, and logging data.

Both of HBAR’s functions will see increased demand as the ecosystem expands and Hedera Hashpraph achieves greater adoption and transaction volume. The price of HBAR could therefore arise as the project develops and Hedera Hashgraph forms more partnerships and integrations.

Live Hedera Hashgraph Value and Market Cap

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

Given HBAR’s volatility, its live price can change by a large amount in a very short space of time. The market cap of Hedera Hashgraph is equal to the price of HBAR multiplied by the number of HBAR in circulation.

Hedera Hashgraph Price FAQ

How is the price of HBAR calculated?

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

Why is the price of HBAR different on different cryptocurrency exchanges?

HBAR’s price is based purely on trading as there is no standard global HBAR 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 HBAR 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 HBAR. However, as demand for the cryptocurrency from developers and stakers will likely increase with adoption, HBAR prices may well rise as Hedera Hashgraph develops and expands.

Conclusion

The price of HBAR has seen a lot of change, going from lows of under a cent to highs of $0.46. Its price movements have rarely been smooth, however, as HBAR’s volatility has led to surges and crashes throughout its history.

Many different factors have played a role in determining the price of HBAR, including the number of developers on the network, demand for staking, and trends in the rest of the crypto market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

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