HBAR price has come under intense pressure in the past few months as concerns about its ecosystem remains. Hedera Hashgraph was trading at $0.056 on Wednesday morning, which was about 90% below its highest level this year. Its market cap has crashed to about $1.3 billion.
Hedera Hashgraph ecosystem challenges
Hedera Hashgraph is a top blockchain project that seeks to become a leading alternative to Ethereum, Polkadot, and Solana. It is a smart contract network that is 10 times faster than its alternative blockchains and is also carbon negative. Hedera, like Bitgert, has substantially lower fees than its peers.
Another difference between Hedera and other cryptocurrencies is that its governance structure is made up of leading global companies. Some of these firms include Google, LG, ServiceNow, Nomura, and EDF among others. All these firms are using Hedera’s technology to build their decentralized products. Hedera handles over 1 million transactions on a daily basis.
Still, a closer look at Hedera Hashgraph shows that its ecosystem is substantially smaller than other blockchains like Solana and Tron. For example, its DeFi ecosystem has a total value locked (TVL) of just $17.5 mullion. The top DeFi apps in its ecosystem are Stader, SaucerSwap, and Tangent. Stader has a market dominance of 100%. Hedera has a negligible market share in the NFT and metaverse industries as well.
HBAR price prediction
The daily chart shows that the HBAR price has been in a strong bearish trend in the past few months. It has managed to move below the 25-day and 50-day moving averages. The Awesome Oscillator has moved below the neutral level. It is also slightly above the important support level at $0.055.
Therefore, there is a likelihood that the Hedera Hashgraph price will have a bearish breakout in the coming days. If this happens, the next key support level to watch will be at $0.045. A move above the resistance at $0.06 will invalidate the bearish view.