Journalist
Posted:
- Hedera’s stablecoin plans highlight an opportunity to explore a proven growth area.
- HBAR bulls are back, but current data suggests their dominance could be short-lived.
The Hedera blockchain just made possibly one of the most important announcements this year. The network plans to go full steam ahead in the stablecoin segment and this could prioritize aggressive growth over the next twelve months.
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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 managing, issuing and configuring stablecoins within its ecosystem.
1/ We are excited to announce the #Hedera #Stablecoin Studio: The all-in-one toolkit for stablecoin configuration, issuance and management, tailor-made for #web3 platforms, institutional issuers, enterprises and payment providers.
Discover ➡️ https://t.co/JYoPGw8Bt4 pic.twitter.com/y8M22fQx4V
— Hedera (@hedera) September 13, 2023
Furthermore, the Hedera Network revealed that the new stablecoin toolkit will be a B2B offering. The target groups are payment providers, companies and institutional stablecoin issuers. The target group underlines the potential to tap into multiple industries.
Will Hedera’s stablecoin studio enable exponential network growth?
Institutional liquidity is one of the biggest drivers in crypto and beyond. This focus could thus provide a new lifeline for Hedera’s dream of achieving mass adoption and usability. 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 tremendous growth, mainly through stablecoins.
So Hedera could follow in Tron’s footsteps with its own unique twist on the stablecoin focus. This could unlock more utility, which in turn could facilitate more utility and demand for the HBAR cryptocurrency.
HBAR bulls are playing
News of Hedera’s new stablecoin studio came at a time when HBAR was experiencing bullish relief after a 40% discount to August highs. HBAR was trading hands at around $0.051 at the time of writing, following a 13% rally from a four-week low.
HBAR’s turn occurred after retesting the same support line where the price found support in early July. According to the Relative Strength Index (RSI), the price was also almost overbought, indicating pent-up bullish momentum. This would explain why the price did not completely end up in oversold territory.
Read Hedera’s [HBAR] price forecast 2023-24
Perhaps the next most important question is whether HBAR can maintain the bullish momentum for a while longer. Well, on-chain data showed that the ongoing rally was supported by a substantial increase in volume. Daily USD trading volumes also increased significantly.
While the above observations are in line with the bullish momentum, it was worth noting that the initial wave of open interest has passed. Open interest in USD per exchange has risen sharply over the past 24 hours. However, after the peak, the price also fell significantly. This could be a sign that the bullish momentum could be short-lived if current demand is not sustainable.