Hedera’s stablecoin launch: Why this can accelerate the network’s growth

Post­ed: Sep­tem­ber 15, 2023

• Hedera’s sta­ble­coin plans high­light a chance to explore a test­ed area of growth.
• HBAR bulls are back but cur­rent data sug­gest­ed that their dom­i­nance might be shortlived.

The Hed­era blockchain just made pos­si­bly one of its most impor­tant announce­ments this year. The net­work plans to push full speed ahead into the sta­ble­coin seg­ment and this could set prece­dence for aggres­sive growth in the next 12 months.

Is your port­fo­lio green? Check out the Hed­era Prof­it Calculator

The announce­ment revealed that Hed­era is ven­tur­ing into the sta­ble­coin indus­try through its new­ly launched sta­ble­coin stu­dio. The lat­ter will report­ed­ly be Hedera’s toolk­it for the man­age­ment, issuance, and con­fig­u­ra­tion of sta­ble­coins with­in its ecosystem.

1/ We are excit­ed to announce the #Hed­era #Sta­ble­coin Stu­dio: the all-in-one sta­ble­coin con­fig­u­ra­tion, issuance, and man­age­ment toolk­it tai­lored for #web3 plat­forms, insti­tu­tion­al issuers, enter­pris­es, and pay­ment providers alike.

Explore ➡️ https://t.co/JYoPGw8Bt4 pic.twitter.com/y8M22fQx4V

— Hed­era (@hedera) Sep­tem­ber 13, 2023

In addi­tion, the Hed­era net­work revealed that the new sta­ble­coin toolk­it will be a B2B offer­ing. The tar­get clients are pay­ment providers, com­pa­nies, and insti­tu­tion­al sta­ble­coin issuers. The tar­get clien­tele under­scores the poten­tial to tap into mul­ti­ple industries.

Will Hedera’s stablecoin studio unlock exponential network growth?

Insti­tu­tion­al liq­uid­i­ty is one of the biggest dri­vers in cryp­to and beyond. This focus could thus offer a new life­line for Hedera’s dream of achiev­ing mass adop­tion and util­i­ty. The deci­sion to explore growth through sta­ble­coins is one that has been quite suc­cess­ful for oth­er top net­works. The Tron net­work is per­haps the best exam­ple of a net­work that has achieved immense growth most­ly through stablecoins.

Hed­era could thus be fol­low­ing in Tron’s foot­steps with its own unique twist on the sta­ble­coin focus. This could unlock more util­i­ty which could in turn facil­i­tate more util­i­ty and demand for the HBAR cryptocurrency.

HBAR bulls are out to play

The news about Hedera’s new sta­ble­coin stu­dio came at a time when HBAR was expe­ri­enc­ing a bull­ish relief after a 40% dis­count from August highs. HBAR exchanged hands for rough­ly $0.051 at press time after a 13% ral­ly from its four-week low.

HBAR’s piv­ot occurred after retest­ing the same sup­port line where the price found sup­port in ear­ly July. It was also almost over­bought accord­ing to the Rel­a­tive Strength Index (RSI), hence indi­cat­ing pent-up bull­ish momen­tum. This would explain why it did not dip all the way into over­sold territory.

Read Hedera’s [HBAR] price pre­dic­tion 2023–24

Per­haps the next most impor­tant ques­tion is whether HBAR can sus­tain the bull­ish momen­tum for a while longer. Well, on-chain data revealed that the ongo­ing ral­ly was backed by a sub­stan­tial vol­ume uptick. Dai­ly trad­ing in USD vol­ume was also up considerably.

While the above obser­va­tions align with the bull­ish momen­tum, it was worth not­ing that the ini­tial wave of open inter­est is over. Open inter­est in USD per exchange bounced sharply in the last 24 hours. How­ev­er, it also dipped con­sid­er­ably after its peak. This might be a sign that the bull­ish momen­tum could be short-lived if the cur­rent demand is not sustainable.