Hedera (HBAR), the open-source Proof-of-Stake (PoS) blockchain network, demonstrated substantial progress in the fourth quarter (Q4) of 2023, as highlighted in a recent report by Messari.
The network exhibited significant growth across key metrics, surpassing industry benchmarks during this period.
Hedera Network’s Performance in Q4 2023
During the fourth quarter (Q4) of 2023, Hedera’s circulating market cap soared by 78% quarter-over-quarter (QoQ), reaching $2.9 billion. This growth outpaced the overall crypto market’s expansion rate of 54%, underscoring Hedera’s increasing influence. The year-on-year (YoY) change for HBAR stood at an impressive 211%, reflecting the network’s significant progress and adoption.
Hedera’s circulating market cap grew by 78% during Q4. Source: Messari
Additionally, Hedera Network’s revenue surged by 59% QoQ to $1.6 million in Q4 2023, primarily driven by a 66% QoQ increase in transactions, notably fueled by the Hedera Consensus Service. Revenue from Token and Smart Contract Services contributed approximately 14% of the total revenue, showcasing a well-balanced distribution in Hedera’s revenue streams.
With a fixed total supply of 50 billion HBAR, Q4 2023 saw 33.6 billion HBAR, or 67% of the total supply, in circulation. The quarterly distribution of HBAR, reported through the Hedera Treasury Management Report, anticipates an additional 10% of the total supply to be unlocked in Q1 2024, including new ecosystem grants.
Despite a decline in the number of addresses during Q4 2023, with average daily active addresses dropping by 22% QoQ to 6,600 and average daily new addresses decreasing by 39% QoQ to 5,200, substantial year-on-year growth was observed. Active addresses surged by 90% YoY, while new addresses witnessed a remarkable 123% YoY increase.
Hedera Network achieved a new record in transaction volume for the sixth consecutive quarter, with an impressive daily average of 164 million transactions in Q4 2023, marking a 66% QoQ surge. The Hedera Consensus Service remained the primary driver of this activity, accounting for 99% of all transactions on the network.
Hedera Network’s Progress and Achievements in Q4 2023
In Q4 2023, the Hedera network reported an impressive 28 billion HBAR staked, accounting for 85% of the circulating supply and 56% of the total supply. Entities like Swirlds and Swirlds Labs significantly contributed to staking their HBAR allocations, with support from the Hedera Treasury to help validators meet the minimum staking threshold for network consensus.
The Hedera network’s Total Value Locked (TVL) experienced notable growth, reaching $64 million by the end of 2023, marking a substantial year-on-year increase of 169%. TVL denominated in HBAR reached 733 million, indicating a 16% quarter-over-quarter and year-over-year increase. Notably, Hedera’s TVL ranked among the top 40 blockchain networks.
Moreover, the Hedera Network witnessed a remarkable 164% quarter-over-quarter increase in average daily decentralized exchange (DEX) trading volume, reaching an all-time high of $1.3 million. SaucerSwap emerged as the dominant platform for DEX trading activity on the Hedera network.
Hedera’s DEX volume growth during Q4. Source: Messari
Additionally, the stablecoin market cap on the Hedera network saw impressive growth, surging by 73% quarter-over-quarter to reach a year-end total of $6.3 million. Circle’s USDC remained the sole stablecoin available on Hedera, with the network’s rank in the stablecoin market cap among blockchain networks improving by four spots quarter-over-quarter, solidifying Hedera’s position in the stablecoin market.
HBAR’s price recovery on the daily chart. Source: HBARUSDT on TradingView.com
Under current market conditions, the price of HBAR stands at $0.0736, reflecting significant growth in the past 24 hours, with a 5% increase.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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