- 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.
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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 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.