Hedera is set to undergo a major upgrade to its mainnet on July 23, 2025, at 17:00 UTC. This upgrade is expected to last 40 minutes and will significantly impact network performance and operational flexibility. As an important event in the blockchain space, this upgrade is not only of great interest to developers and node operators but may also have a potential impact on the market performance of the HBAR token.
1. Interpretation of Upgrade Content
(1) Non-zero Sharding and Domain ID Support
The new version of the Hedera mainnet will allow for the use of non-zero sharding and domain ID in system commands, providing greater flexibility for network partitioning. For enterprise applications, this means that the network architecture can be customized according to business needs, enhancing data processing efficiency and security. For example, financial institutions can utilize this feature to partition different types of transaction data into different shards, achieving more efficient parallel processing while reducing potential security risks.
(2) Fee Configuration Throttling
To prevent potential risks associated with management changes, the upgraded system will implement rate limits on management changes. This measure aims to maintain network stability and avoid congestion or anomalies caused by a large number of management operations within a short period. By setting reasonable rate limits, Hedera can ensure that all nodes operate efficiently in the face of management changes, further enhancing the reliability of the network.
(3) MerkleDB Optimization
The optimization of MerkleDB is a major highlight of this upgrade. By improving storage algorithms and data structures, the storage efficiency of nodes will be significantly enhanced, while reducing processing overhead. This change not only helps lower the operating costs of nodes but also accelerates ledger synchronization speed and increases the overall throughput of the network. For high-frequency trading scenarios, such as decentralized finance (DeFi) applications, the MerkleDB optimization will shorten transaction confirmation times and improve user experience.
2. Impact on HBAR Practicality
Although this upgrade primarily focuses on the technical level, the core functionalities of the HBAR token that users care about remain unchanged. Functions such as transfers, staking, and serving as gas fees for smart contracts will continue to operate stably. Transaction fees and staking mechanisms also remain unchanged, meaning users do not need to adjust their usage habits before and after the upgrade. However, there may be temporary transaction delays or interruptions during the upgrade due to the brief adjustments required when switching the network to the new version. But after the maintenance is completed, the network will return to normal and is expected to demonstrate better performance.
3. Market Performance and Price Outlook
As of July 21, the price of HBAR has surged over 100% this month, rising from approximately $0.15 to a range of $0.28 - $0.29. Technical analysis shows that HBAR has formed a bullish golden cross pattern, while strong inflow data from exchanges further supports this upward trend. However, short-term RSI indicators suggest that HBAR may be in an overbought state, indicating potential price correction pressure in the short term. From a long-term perspective, analysis from BeInCrypto indicates that if the current upward momentum continues, the next resistance level for HBAR may be between $0.37 - $0.50.
This v0.63 upgrade is essentially a technical maintenance update rather than a functional release or token economics adjustment, so it is unlikely to directly drive a significant increase in HBAR prices. However, the stability and reliability improvements brought by the upgrade will help enhance investor confidence in the Hedera ecosystem, especially after the severe fluctuations experienced in July. If the upgrade is successfully completed, it is expected to maintain the current price range by reducing technical risks. However, it should be noted that significant changes in HBAR prices are more likely to be influenced by macro market sentiment and major news in the ecosystem, rather than solely depending on this upgrade.
4. Summary and Outlook
The upgrade of Hedera's mainnet marks an important step in its technological innovation and network optimization. By introducing non-zero sharding and domain ID support, fee configuration throttling, and MerkleDB optimization, Hedera aims to enhance network performance and expand its application potential in the enterprise market. Although this upgrade has limited direct impact on the practicality and price of HBAR, in the long run, continuous technological improvements will lay a solid foundation for the healthy development of the Hedera ecosystem. Investors and developers should closely monitor the network performance after the upgrade while combining market dynamics to seize investment opportunities and application innovation space for HBAR.