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Hedera Hashgraph token wavered on Tuesday as sentiment in the crypto industry waned.
Hedera Hashgraph ($HBAR) was trading at $0.1900, down about 15% from its highest level this week and 50% below its high in November last year.
Fundamentals suggest that the $HBAR price may rebound soon. One of the most notable is that the supply of stablecoins on Hedera has surged in recent days.
Hedera now holds $181.4 million in stablecoins, up from $20 million during the same period last year. It has also jumped from $34 million on Jan. 1. Circle’s USD Coin (USDC) has a market dominance of 99.5% in Hedera.
This growth means that Hedera has overtaken some popular layer-1 chains in the amount of stablecoins in the ecosystem. Stellar (XLM) has $180 million, while Algorand (ALGO), Cronos (CRO), and Polkadot (DOT) have $160 million, $141 million, and $102 million, respectively.
A rising volume of stablecoins on a chain is typically bullish, as it signals increasing user activity.
Another catalyst for $HBAR is the rise in decentralized exchange volume. DeFi Lllama data shows that weekly volume jumped 40% to $64.4 million, bringing the cumulative total to $4.6 billion.
Hedera is also becoming a notable player in the real-world asset tokenization space. It recently launched the Asset Tokenization Studio, designed to streamline the configuration, issuance, and management of tokenized bonds and stocks.
In addition, Hedera has introduced a stablecoin studio, a consensus service, and the Hedera Token Service. The network is positioning itself as a key player in tokenization, bolstered by partnerships with firms like Google and IBM.
$HBAR price technical analysis
The weekly chart shows that Hedera’s price bottomed at $0.1250 in April before rebounding above $0.20 this month. It remains above the key support level at $0.1826, the highest swing on April 22 last year.
$HBAR is also trading above the 50-week moving average, while the Relative Strength Index has turned higher. As a result, the coin is likely to continue climbing, with bulls targeting the year-to-date high of $0.4032, a potential 105% gain from the current level.