Transaction Volume Goes Up 10x in Q4 2024! Why is Hedera (HBAR) Booming?

The [HBAR] blockchain of Hedera has been making big moves in the crypto space, especially in Q4 2024, where the blockchain’s transaction volume went up 10x. As the global stablecoin market cap hits $212 billion, and with Hedera amassing over $10 million in daily on-chain activity in December, investors are expecting huge things to happen with massive stablecoin adoption and big partnerships.

Stablecoin Growth: A Big Catalyst for Hedera

As the global stablecoin market grew to an all-time high of $212 billion in 2024 and is expected to reach $2.8 trillion by 2028, there are huge opportunities for blockchain networks that can support stablecoin transactions.

Hedera itself is especially positioned to benefit from this trend because it has a very strategic partnership with the global payments giant Worldpay. Worldpay processes transactions for some of the biggest financial institutions: Visa, Mastercard, Wells Fargo and Bank of America.

Hence, most of the transaction volume is expected to be processed on the Hedera enterprise-grade blockchain as mainstream stablecoin adoption grows. With low fees, fast consensus, and carbon-negative operations, Hedera is set as the infrastructure for payments around stablecoins.

Daily On-Chain Activity and Total Value Locked (TVL) Growth

Hedera had one of the best Q4s of 2024, with massive on-chain activity. With more volume being transacted, TVL went up and crossed $160 million as investors are getting more confident.

Daily on-chain transaction volume also grew – from less than $1 million in October to $10 million in December.

While these are big numbers for Hedera, they are tiny compared to the big blockchain networks with billions of TVL and transaction volume. However, the uptick shows Hedera is finding its place, especially in stablecoin applications.

HBAR Price and Investor Sentiment

HBAR has held up well to market volatility. After reaching ATH on January 17, it dipped 21% and then rebounded 13% on January 23 to $0.354.

This price action shows one thing: investors are HODLing their HBAR – a sign many believe in the long-term potential of the asset.

In the derivatives market, HBAR looks bullish:

Open Interest: Up 4.65% in the last 24 hours to $421.59 million.

Derivatives Volume: Declined to $345.17 million, lowest since mid-January.

Funding Rates: The slight dip in Open Interest Weighted Funding Rates means traders are being cautious.

So, there’s great interest in HBAR and more commitment to the asset despite the volatility in open interest and funding rates.

Hedera’s Unique Selling Points in Blockchain

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Hedera has been strong in Q4 2024 for its unique advantages. First, Hedera’s blockchain is for enterprise use, so it can handle high-speed transactions of up to 10,000 TPS with low fees. With environmental concerns getting more and more important every day, Hedera’s green commitment has become a unique selling point, especially for institutional investors.

Hedera’s hashgraph consensus algorithm is fast and secure for transactions and perfect for high-volume stablecoin transaction processing.

All of these make Hedera one of the most popular blockchains for industries that want to move to decentralized solutions without sacrificing efficiency and security.

Hedera’s Future Outlook

While Hedera has had successes, it also has challenges. TVL and daily transaction volume is still tiny compared to Ethereum and Binance Smart Chain, but growing.

Additionally, global demand for HBAR was not as strong as most digital assets since the recent dip in volume in the derivatives market. To sustain growth, Hedera needs to increase activity within its ecosystem and more profitably onboard users.

However, the network’s alignment with the stablecoin market and its tech foundation looks promising. As stablecoin adoption grows, Hedera can ride the trend and take a bigger piece of the pie.

Wrapping Up

Q4 2024 for Hedera showed more of the network’s growing impact: 10x growth in transaction volume and strategic use cases due to high-value partnerships has put Hedera in a strong position in the stablecoin market. Issues are still being tackled – really low TVL compared to big competitors, which includes Ethereum – but it has its back, tech-wise, and stablecoin adoption trends are bullish for more upside.

So as the global stablecoin market grows, Hedera can take a bigger piece of the pie – a blockchain to watch out for in the future. Investors and enterprises are taking notice of its uptrend and brighter prospects for HBAR and the Hedera ecosystem.

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FAQs

1. Why is Hedera’s transaction volume growing?

Hedera’s transaction volume in Q4 2024 grew 10x due to stablecoin-related activity and the partnership with Worldpay, which processes transactions for big financial institutions.

2. How much of the growth is from stablecoin adoption?

Stablecoin adoption is bringing more transactions to the blockchain networks. With its enterprise-grade infrastructure, Hedera is the platform of choice for stablecoin payments, especially as the global stablecoin market cap grows.

3. How is Hedera doing right now?

After reaching its all-time high in January 2024, HBAR shed its price appreciation and is consolidating quietly. However, investors largely view it very favorably, as downside pressure on sell-side pressure remains weak, with an upward trend in open interest on the derivatives markets.

4. What factors are working in favor of Hedera?

It attracts many more enterprises and financial institutions to the platform since Hedera offers superior transaction throughputs, low fees, and a verifiably carbon-negative operations record. It also stands among the top in terms of its values for security and scalability when matched against other blockchains.