HBAR Surges 375% in Q4 as Hedera Climbs to Top 20 Crypto Rankings
Key Takeaways
- HBARs market cap surged 375% QoQ to $10.3 billion, ranking it 18th among all cryptoassets.
- Hederas network revenue dropped significantly, with the Consensus Service seeing a 99% decline.
- Staking remained high, with 54% of the circulating supply locked despite most stakers forgoing rewards.
Messaris latest State of Hedera Q4 2024 report highlights a remarkable turnaround for HBAR, with its circulating market capitalization rebounding 375% quarter-over-quarter, jumping from $2.2 billion to $10.3 billion.
This rally propelled HBAR to 18th position from 46th in cryptoassets, surpassing some of its competitors. The price of HBAR also jumped 367% to $0.27 due to optimism in the market following the U.S. presidential election.
While the circulating supply of HBAR rose to 38.3 billion, the rate of increase slowed quarter-over-quarter to grow by a mere 1.7%.
The networks distribution plan remains in line with projections of another 3.9 billion HBAR being introduced into circulation in Q1 2025. The majority of this new supply, over 3.6 billion HBAR, is allocated to ecosystem development and open-source initiatives.
Declining Revenue Despite Network Expansion
Even with this significant increase in market cap, Hederas network revenue fell sharply, with overall transaction fee earnings reaching a yearly low of 2.1 million HBAR.
This is a staggering 92% quarter-on-quarter decline that translates to an 85% dollar-denominated revenue decline to $239,800 for the quarter.
The revenue reduction was largely due to a significant reduction in the Hedera Consensus Service, which had a 99% reduction in earnings. The other network services also registered decreases: Hedera Token Service revenue fell by 51%, while Crypto Service had a 38% reduction.
The Smart Contract Service was the sole exception, to this, with a revenue boost of 22% to 980,900 HBAR. The declines were mostly caused by losing significant transaction contributors such as Avery Dennisons atma.io platform that discontinued utilizing the Consensus Service, with a significant impact on network utilization.
Crypto Service Leads Hederas Transaction Volume Distribution
Hederas network activity saw opposing trends in Q4. New accounts decreased 10% quarter-over-quarter, while active accounts increased 24% to 10,100. Transactions fell off a cliff, with the daily volume falling to 563,000 from 153 million, a 99% decline in Hedera Consensus Service transactions.
But transaction volume was more evenly divided between various network services, with Crypto Service handling the greatest share at 39.1%.
20.6 billion HBAR remained staked at Q4s close and represent 54% of circulating supply. The majority of this staking is thanks to key players like Hashgraph and the Hedera Treasury that continue to participate in network validation without claiming staking rewards.
Of particular note is that 72% of staked HBAR does not earn a reward, indicating a unique staking paradigm within the ecosystem. Meanwhile, smart contract development continued to build momentum with a 26% increase in daily active contracts to a year-to-date high and with 116% year-over-year growth.
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Read more: https://www.tronweekly.com/hbar-surges-375-in-q4-as-hedera-climbs/
Text source: TronWeekly
