- More than 1.9 million HT has recently been burned by Huobi.
- Whales hold about 95% of HT in circulation as the price struggles.
Huobi recently revealed the burn rate for Q2 2023. It provided insight into the number of HT tokens destroyed as part of deflationary efforts. But how has the token itself performed amid these measures?
Read Huobi (HT) Price Forecast 2023-24
Huobi sees a big burn
Huobi made one important announcement on July 15, revealing the state of its earnings and the percentage allocated for burning. During the second quarter of 2023, the cryptocurrency exchange burned an impressive 1,950,555 HT. This burn accounted for 20% of Huobi’s revenue, indicating second quarter sales of approximately $26.91 million. By comparison, revenue for the first quarter was $16.55 million.
With this recent burn, the cumulative total of HT burned by Huobi has reached a substantial figure of 298,940,224 HT as of July 15, 2023. This move highlights the exchange’s commitment to reducing the circulating supply of HT and potentially increasing its value increase in the process.
The trend of Huobi’s HT
While part of Huobi’s revenue was allocated to the HT burn, the token’s price trend appeared lackluster on the daily timeframe chart. The chart indicated an almost flat trend, indicating limited trading activity. At the time of writing, HT was trading around $2.76, reflecting a small price increase of less than 1%.
Specifically, the chart showed that HT was closely tracking its short moving average (yellow line), which acted as immediate resistance. On the other hand, the long moving average served as a more substantial resistance in the $3.9 price range, suggesting a long-term barrier.
Source: TradingView
The positioning of these moving averages also pointed to HT’s current poor price performance. Despite this, the token remained in a bull trend, albeit weak, as indicated by the Relative Strength Index.
Analysis of current volume and positions
According to Market capitalization of coins, the slight increase in price resulted in a market capitalization increase of less than 1%. However, there was a noticeable drop in trading volume over the last 24 hours, which had declined by around 13%.
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In addition, an analysis of the token revealed that whales held a significant 95% of the total supply. In addition, as opposed to active traders and short-term holders, the percentage of long-term holders accounted for more than 87% of HT holders.
These statistics suggest that a higher proportion of tokens are being held rather than being actively traded, which could explain the low trading volume and lackluster price movement.
