What is HBAR?
Hedera Hashgraph (Hbar) is the native cryptocurrency of the Hedera network, a decentralized public ledger that offers high-speed, secure, and scalable blockchain solutions. Hbar is used to power decentralized applications (dApps) on the Hedera network and serves two primary purposes:
1. Network Fuel:
Hbar is used to pay for transaction fees and to support operations on the Hedera platform, such as executing smart contracts, managing tokens, or transferring cryptocurrency.
2. Network Security:
Hbar is also used in Hedera’s proof-of-stake (PoS) consensus mechanism. Staking Hbar allows token holders to contribute to network security by participating in the consensus process.
Key Features of Hedera Hashgraph:
• Speed: It supports thousands of transactions per second, making it much faster than many traditional blockchains like Ethereum and Bitcoin.
• Low Fees: Transaction costs are typically lower than on other blockchain networks.
• Eco-Friendly: Hedera is designed to consume less energy than traditional blockchain networks, which aligns with its focus on sustainability.
Hbar has grown in popularity for use cases such as supply chain tracking, digital identity verification, and tokenization of assets.
Why is HBAR pumping now?
Hedera’s (HBAR) recent price pump is driven by multiple factors:
1. The recent surge in Hedera’s (HBAR) price seems to be linked to speculation about potential changes at the U.S. Securities and Exchange Commission (SEC) and broader crypto-related optimism following the U.S. elections. Brian Brooks, a prominent crypto advocate and Hedera Governing Council member, is being considered a contender to replace Gary Gensler as SEC Chair under the new administration. This has fueled market excitement as Brooks has consistently supported pro-crypto policies, which contrasts with Gensler’s historically strict stance on digital assets .
Additionally, Hedera’s ongoing advancements, including partnerships and ecosystem growth, have also contributed to market confidence. The combination of political shifts and Hedera’s strong fundamentals is likely driving investor interest in HBAR .
2. ETF Speculation: Canary Capital Group recently filed for an exchange-traded fund (ETF) linked to HBAR, sparking optimism in the crypto market. This follows Canary’s earlier launch of an HBAR trust, signaling increasing institutional interest in the token .
3. Blockchain Adoption: Hedera has been gaining attention for its enterprise-grade blockchain applications. Recent reports suggest it is being considered for use in blockchain-based voting and identity verification systems, potentially with governmental and corporate partnerships .
4. Tokenization News: A recent announcement revealed that tokenized shares of BlackRock’s ICS US Treasury Fund were issued on the Hedera network. Although this was misinterpreted as a direct partnership with BlackRock (later clarified to be false), the news boosted interest in the Hedera ecosystem .
HBAR’s rally reflects a mix of real developments and speculative excitement around its network’s use cases and institutional backing.
By. S S Bulugahapitiya (Cryptexplorer)
