Hedera’s circulating market cap saw a remarkable 208% growth in Q1’23, reaching $2 billion. The market cap surged by 108% quarter on quarter, from $940 million to $2 billion, with an increasing number of HBAR coins being traded on crypto exchanges.
According to Edith Reads, a financial analyst at BitcoinCasino, the primary cause of the market capitalization rise was the increasing investment and enthusiasm from institutional investors and developers. Since its inception in 2018, Hedera has gained significant popularity as a preferred blockchain platform for governments and businesses. This has been strengthened by new partnerships introduced in 2022, which have enabled Hedera to become a viable option for business use cases.
Hedera Hashgraph (commonly referred to as just “Hedera”) is a public distributed ledger technology (DLT) platform that uses a directed acyclic graph (DAG) consensus algorithm to achieve high throughput, fast finality, and low latency transactions. It was launched in 2018 with the goal of providing a more efficient and secure alternative to existing blockchain platforms.
Hedera: A Scalable and Growing Blockchain For Businesses
Unlike traditional blockchain platforms that require all nodes to validate and confirm each transaction, Hedera’s DAG algorithm enables nodes to confirm transactions independently, leading to faster processing times and greater scalability.
Hedera aims to serve as a trusted infrastructure layer for decentralized applications (dApps) and enterprise solutions by providing a fast, secure, and stable platform for building and deploying smart contracts, decentralized finance (DeFi) applications, and other decentralized systems. The platform’s native cryptocurrency is called HBAR, which is used to pay for network services and incentivize nodes to participate in the consensus process. Hedera is managed by the Hedera Governing Council, a group of 21 leading global organizations from various industries that oversee the platform’s development and governance.
Businesses can benefit from Hedera in several ways. Firstly, Hedera provides a more efficient and cost-effective platform for deploying decentralized applications (dApps) and smart contracts. The platform’s fast finality and low transaction fees make it an ideal solution for businesses looking to implement blockchain-based solutions.
Secondly, Hedera’s governing council provides a level of trust and transparency that is often lacking in other blockchain platforms. By having a diverse group of leading organizations overseeing the platform’s development and governance, businesses can be confident that the platform is being developed in a responsible and sustainable manner.
Thirdly, Hedera’s native cryptocurrency, HBAR, can be used to pay for network services and incentivize nodes to participate in the consensus process. This creates a self-sustaining ecosystem that ensures the platform remains secure and scalable over time.
One of the key drivers of Hedera’s growth in Q1’23 was the growing demand for the company’s native cryptocurrency, HBAR. The price of HBAR has been steadily increasing in recent months, reflecting the platform’s growing interest. As more people acquire and hold HBAR, the circulating volume of the cryptocurrency increases, pushing up the price. For more information and statistics, see Hedera’s Q1’23 Circulating Market Cap Ballooned 208% To Stand At $2 Billion on BitcoinCasinos.com.