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Hedera, branded the most popular enterprise-grade public network, is an open-source cryptocurrency network that allows both users and developers to conduct transactions and deploy decentralized applications.

Hedera, founded by Leemon Baird and Mance Harmon, developed a groundbreaking distributed ledger technology known as a “hashgraph,” which was officially introduced in September 2019. Three years later, Hedera’s native token HBAR reached a record high of $0.46.

What is Hedera Hashgraph?

Founded in 2018 by Leemon Baird, Mance Harmon, and Zenobia Godschalk, Hedera is a public distributed ledger and governing body built from the ground up to support new and existing applications running at a web-scale. It uses distributed ledger technologies to build computational trust directly into its applications, which, in turn, allows businesses and individuals who might not know or trust each other to collaborate quickly and inexpensively. The public distributed ledgers helps in creating and exchanging value, verifying and authenticating important data, proving identity, and more.

Based in Richardson, Texas, United States, Hedera Hashgraph has raised a total of $125 million in funding from 7 rounds. The company is funded by 19 investors, including Boeing HorizonX Ventures, Tata Communications, BlacTower Capital, Vestinwolf Alternatives, among others.

Mance Harmon is the CEO and co-founder of Hedera Hashgraph. He is an experienced technology executive and entrepreneur with over 20 years of strategic leadership experience in multinational corporations, government agencies, and high-tech startups. Dr. Leemon Baird, the co-founder and chief scientist of Hedera Hashgraph, has built the Hedera public network on the hashgraph distributed consensus algorithm. One major benefit of Hedera Hashgraph is that it does not require compute-heavy proof of work.

What Problem does Hedera Hashgraph Solve?

Hedera is a distributed ledger that resolves the factors that constrain the adoption of public DLT by the mainstream.

1. Hedera is the lone public ledger solution available in the industry that uses hashgraph consensus, which is a quicker and more secured alternative solution to blockchain consensus mechanisms. The hashgraph mechanism works more efficiently to verify transactions while achieving the utmost possible level of security, even when there are malicious attacks on the network.

2. Hashgraph is faster than Bitcoin or Ethereum blockchains, as it achieves high throughput with over 10,000 cryptocurrency transactions per second and low-latency. It benefits from its innovative gossip protocol and virtual voting.

3. Their network is governed by a council of up to 39 leading global enterprises. These council members bring much-needed experience in business and process expertise missing in previous public ledger platforms. The council reflects a mix of industries with many well-respected brands being a part of it. Such a diverse mix of industry participants enables Hedera Hashgraph to receive unique perspectives to solve industry challenges. At the time of writing, Boeing, Chainlink Labs, Dentons, Deutsche Telecom, LG, Google, Nomura, and many other top brands are the council members of Hedera Hashgraph Network.

4. The Hedera technical solution includes controlled mutability of the network state and the potential to request or attach additional data to transactions, like identity certificates. These features provide the capability of future functionality. This is optional and within the control of the end-users. As such, Hedera wants to work with regulators and encourage the development of tools to allow businesses to fulfill their consumer protection and regulatory compliance obligations.

Things to Consider Before Investing in Hedera or HBAR

Considering its ups and downs, let’s take a look at some things you should consider before investing in Hedera or HBAR, its native token.

1. Hedera’s Ecological Conscience

Hedera Hashgraph is quickly becoming one of the most stable projects in the crypto world. A year ago, this cryptocurrency temporarily exceeded Ethereum in terms of transaction volume, a fact that further bolstered its already formidable standing.

Hedera Hashgraph has also been regarded as one of the most eco-friendly crypto assets. It has made environmental sustainability a central tenet of the company’s ethos and has pledged to run its network in a carbon-negative manner by compensating for carbon emissions at a rate decided by an independent third-party assessment service, Terrapass, every three months.

2. Hedera’s Earlier Performances

In August 2018, HBAR was distributed to investors via an initial coin offering (ICO). Hedera’s mainnet came to life in September 2019, marking the official release of the cryptocurrency to the public. Its initial coin offering price was $0.12; however, by the end of the first month, its value had dropped to less than $0.04. For the remainder of 2019, HBAR followed a similar pattern of decline, falling to only $0.01 at year’s end.

After being relatively stable during all of January 2020, prices suddenly skyrocketed in the middle of February, eventually reaching a high of over $0.08 at its peak. However, this was just temporary, as HBAR crashed 46% in a single day in March, plummeting to a low of under $0.02. 

From then, prices rose gradually again, all the way up to $0.06 in August, their all-time high at the moment. However, the trend had reversed by September, and HBAR had fallen back to its previous $0.03. Even towards the end of the year, it was still trading here.

The upswing began almost immediately in 2021, with HBAR breaking beyond the $0.12 threshold in January before retreating to the $0.08 level by the month’s conclusion. Another boom and then retreat occurred in February, with prices rising beyond $0.16 before falling to $0.11 by the month’s conclusion. Hedera Hashgraph’s market worth hit $1 billion for the first time in February.

In March, the price of HBAR reached an all-time high of $0.46, bringing the total market capitalization of the Hedera Hashgraph to more than $3 billion. There was then a 39% drop and a handful of failed rallies that couldn’t get HBAR over its prior peak. Weakness persisted through April and May, and in particular, May saw a precipitous 36% drop in price, with lows reaching $0.15.

3. Hedera Price Forecast

As Hedera continues to break records, market analysts predict that the cryptocurrency’s price will peak in 2023 at $0.130787, while averaging out at around $0.116774. In the worst-case scenario, a bear market may push HBAR’s price as low as $0.102761 in 2023.

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Due to the increasing acceptance of cryptocurrencies in many industries, Hedera’s growth is predicted to skyrocket in 2024. Therefore, the price may rise to $0.177496, with an expected mean of $0.163483. The lowest possible cost of Hedera is $0.14947.

Hedera’s highest price in 2025 might be $0.224205, with an average price of $0.210193, if the crypto market continues to attract more and more investment money. For a sell-off to take place, the price has to rise over $0.19618.

In 2026, if all nations have adopted HBAR, Hedera may demand a maximum price of $0.270915, with an average price of $0.256902 predicted. In the same year, the lowest possible price might be $0.242889.

Increased acceptance from government agencies in 2027 will help push Hedera adoption forward. By 2027, the highest possible price for HBAR could be $0.317624, while the lowest is $0.289599.

The price of HBAR has risen and fallen dramatically, from a low of less than a penny to a high of $0.46. As a result of its volatility, however, HBAR’s price moves have been anything but consistent.

The price of HBAR has been influenced by a broad range of variables, such as the number of developers on the network, the demand for staking, and the general market and economic climate. The equilibrium of supply and demand in the markets determines the present value, which fluctuates continually.

What Factors Influence the Price of Hedera?

The price of Hedera, like any crypto, is influenced by a blend of specific project traits and broader market dynamics. Some key factors impacting Hedera’s value:

  • Hashgraph Technology Adoption and Efficiency: Unlike traditional blockchains, Hedera’s unique Hashgraph mechanism can process transactions more efficiently and quickly. The more widely this technology is adopted for its advantages, the greater the potential impact on Hedera’s price.
  • Governance Structure: Hedera’s distinct governance model, featuring a council of diverse global enterprises, lends credibility and stability to the project. Decisions made by this council, particularly those impacting scalability and performance, can significantly influence investor confidence and, consequently, Hedera’s price.
  • Fair Access and Ordering of Transactions: Hedera’s commitment to fairness in transaction processing is crucial. Upgrades in this area can boost its appeal, especially for applications where transaction order is critical, thereby impacting its market value.
  • Regulatory Compliance and Legal Controls: Hedera’s focus on regulatory compliance and controlled mutability aligns with the growing demand for legally compliant and secure blockchain solutions. Progress in this area can improve its market position.
  • Technological Advancements in Distributed Ledger Technology (DLT): Breakthroughs in DLT can either enhance Hedera’s competitive edge or challenge it, impacting its price.
  • Global Economic Conditions: Macroeconomic factors such as inflation rates, regulatory changes in crypto, and investor sentiment towards technology stocks and cryptos can all influence Hedera’s price.
  • Adoption by Enterprises and Industries: Hedera’s integration into various industry applications and its adoption by enterprises can increase its utility and demand, potentially driving its value.
  • Public Perception and Media Coverage: How Hedera is perceived by the public and portrayed in the media, especially regarding its technological advancements and partnerships, can influence investor behavior and market price.

What Does the Future Hold for Hebera?

2024 could be crucial for Hedera, influenced by several in-network developments and broader market trends. Its focus on improving its technical infrastructure and the broader market recovery are key drivers for its potential price increase.

Hedera’s plans to modularize its services aim to simplify development, troubleshooting, and deployment. This could lead to more efficient network operations and attract developers seeking a user-friendly environment.

Also, enhancements in Hedera’s network infrastructure, aiming to improve uptime and resilience, are crucial. These improvements hint at a commitment to network stability, a key factor for enterprise adoption.

Developer Tooling and Integrations In the Pipeline:

  • JSON-RPC Performance Improvements: Upgrades to JSON-RPC (a simple way for computers to communicate with each other) are expected to boost scalability and performance, making the platform more attractive for large-scale applications.
  • Developer Portal Improvements: Enhancing the developer portal experience can simplify testnet account management, potentially increasing developer engagement.
  • Local Node Improvements: Optimizing local node performance will help in application development, testing, and deployment, further encouraging developer participation.
  • Decentralization and Disaster Recovery: Hedera’s focus on decentralization and disaster recovery improvements will position it as a reliable platform for maintaining uninterrupted network services.

These technical improvements could significantly impact Hedera’s adoption and use case scenarios and attract more users. 

Considering these factors and recovering broader market sentiment, HBAR could reach around $0.2 by 2024’s end. On the other hand, Digital Coin Price, a well-known crypto analytics platform, predicts HBAR could reach around $0.14 by 2024’s end.

Hedera Price Prediction 2025

As we enter 2025, Hedera’s growth seems bright, given the planned network upgrades and developments. Hedera is set to continue its journey towards greater decentralization. They plan to introduce permissioned, community-run mainnet nodes. This move decentralizes the network further and instills more trust among users and developers, potentially increasing network participation and adoption.

Also, another crucial upgrade involves enabling Hedera mirror nodes to display verified source code for deployed smart contracts. This transparency is important for security, increasing confidence among developers and users. It ensures a safer environment for both development and retail experiences.

Hedera can become a more developer-friendly environment by enabling developers to track, diagnose, and improve deployed smart contracts. This could increase the number and quality of applications built on Hedera, further driving its adoption and use.

Considering these strategic upgrades and their potential to boost Hedera’s network, HBAR could gain more traction among investors.

By the end of 2025, Hedera could reach highs of around $0.33. On the other hand, CoinCodex, a renowned crypto analysis platform, also takes a slightly optimistic approach and predicts HBAR could cross $0.2 by 2025.

It’s vital to remember that these predictions depend on the successful implementation of the upgrades above and the continued positive sentiment in the broader crypto market.

Hedera Price Forecast 2030

As we look towards 2030, understanding the potential growth of Hedera within the rapidly expanding blockchain industry is crucial.

The global blockchain technology market, valued at $11.14 billion in 2022, is projected to skyrocket to $469.49 billion by 2030, with an expected Compound Annual Growth Rate (CAGR) of nearly 60%. This explosive growth provides a solid ground for platforms like Hedera to expand their utility and market presence.

Hedera’s development to enable first-class support for its platform using popular Ethereum Virtual Machine (EVM) tools like Hardhat and Foundry is significant. This integration will allow developers familiar with Ethereum’s ecosystem to seamlessly transition and build on Hedera, potentially increasing the platform’s attractiveness and user base.

Also, improvements in streamlining the process for users to associate tokens with their accounts aim to improve both retail and business user experiences. Simplifying this process can lead to greater adoption and use of Hedera’s token services.

Considering these strategic developments and the overall growth of the blockchain industry, Hedera shows potential for significant appreciation. By 2030, it is plausible for Hedera to reach highs of around $0.7, aligning with its anticipated advancements and market trends. 

On the other hand, a more conservative estimate, such as Coinpedia’s prediction of $0.363, shows cautious optimism amid potential market volatility and technological challenges.

Finally, considering the broader market and Bitcoin sentiment alongside other macroeconomic factors is important when looking for the best long-term investment.

Below is a quick overview of the Hedera price forecast from 2024 to 2030:

YearPotential LowAverage PricePotential High
2024$0.1$0.16$0.2
2025$0.19$0.240.33
2030$0.5$0.62$0.7

The Architecture of Hedera Hashgraph

The Hedera Hashgraph platform is an enterprise-focused public Distributed Ledger Technology (DLT) that utilizes a Directed Acyclic Graph (DAG) for its architecture instead of a blockchain.

1. Internet Layer- The network nodes of Hashgraph are all computers on the internet communicating with each other by TCP/IP connections and secured by TLS encryption. The hubs in the network are tended to by IP address and port, and hence any attacks on the DNS framework won’t influence the system.

2. Hashgraph Consensus Layer– The nodes take exchanges from customers and distribute them through the system with a gossip protocol. At that point, all nodes run the hashgraph consensus algorithm to arrive at an agreement time stamp for every transaction and its consensus order. Every node, at that point, then applies the impacts of the transactions in agreement request to modify its replica of the shared state. By doing this, all nodes keep up an identical consensus state (inside any given shard).

3. Services layer– the services layer consists of the following-

i) Cryptocurrency– It is intended to offer quick and low-cost transactions. Thus, it makes microtransactions practical and doable. Once the Hedera solution is operating at a scale, any customer will have the capacity to run a node in the system and receive crypto payments. Any customer can create an account by just making a key pair with no attached name or address. Alternatively, a user can also attach hashes of identity authentications that could originate from any third-party endorsement authority or identity authority that the customer picks. Its purpose is to allow regulatory compliance for crypto accounts. It will be used in conjunction with Know Your Customer (KYC) or Anti-Money-Washing (AMC) laws.

ii) File Storage– The section is where a user can store data, with consensus on what is stored and what is not. You shouldn’t worry about your records getting lost. It is because the file is stored on all the shards. The only person who can erase the data that is the one who has permission to do so.

The information stored can only be erased by those that were given permission. Along these lines, the file system can go about as a revocation service. Hedera Hashgraph’s whitepaper provides a perfect example of the use case:

Imagine a scenario. In the future, the Department of Motor Vehicles issues a license to a user. The department and the issue will sign the transaction. Once they sign, the hash will be stored in the ledger. Both parties can remove the hash if they want to. It makes sharing license very easy as the user can share the copy with anyone who wants to verify the driving license. Now, the person who wants to check if the license is valid or not can check on the ledger to see if the hash is in there or not. If it is, then the license is valid. If not, it is invalid and may have been removed by either the user or the licensing authority.

iii) Smart Contracts–  The Hedera supports smart contracts written in Solidity. At present, there are existing large libraries of Solidity smart contract code that can run unchanged on Hedera, allowing distributed applications to be effortlessly built on top of Hedera.

iv) Consensus– When it comes to creating distributed applications, Hedera Hashgraph’s consensus service will prove to be a perfect choice.

Here users need to submit messages to Hedera for time-stamping and ordering within specific topics. Next, the messages will join the consensus order after flowing out to mirror nodes. Later, the consensus service will give distributed applications straight access to the native security, speed, and fair ordering guarantees of the hashgraph consensus algorithm, with the full belief of the Hedera ledger.

Final Words

Hedera’s unique Hashgraph technology, governance model, and commitment to security and regulatory compliance give it an edge over its competitors. However, its price history also reflects its vulnerability to broader market dynamics and investor sentiment.

Investors looking to buy Hedera should consider the above projections alongside current market conditions, Hedera’s ongoing developments, and the inherent unpredictability of the crypto market before making any buying decision.

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