- A look at why Hedera is destined to benefit big from the growing global market capitalization of stablecoins.
- HBAR sees limited downside, but weak bullish demand limits upside potential.
Hedera [HBAR] is expected to be one of the blockchain networks that could potentially benefit the most from stablecoin growth over the next three years.
The network is a strategic asset that allows it to leverage stablecoin-related opportunities.
Hedera’s on-chain business grew significantly in Q4 2024, with TVL increasing by more than $160 million.
There was also a notable increase in daily volume at the chain, from less than $1 million in early October to a daily average of more than $10 million in December.
Source: DefiLlama
While the above showed an increase in network activity, it was still relatively low compared to other networks, especially those whose TVL and volume figures are in the billions.
And yet, now more than ever, investors are more optimistic about Hedera and HBAR’s prospects.
Hedera uses stablecoin exposure
The global market capitalization of stablecoins recently rose above $212 billion, marking a new all-time high. However, current projections suggest that stablecoin market capitalization growth will be exponential in the coming years.
Current expectations are that this will rise to $2.8 trillion by 2028.
Hedera could be on track to become one of the blockchains that could benefit from that growth through Worldpay. The latter processes transactions on the Hedera network.
One of the main reasons why Worldpay is so important to Hedera is that it processes transactions for major global financial institutions. This includes Mastercard, Visa, Wells Fargo and Bank of America.
The adoption of stablecoins in the mainstream could therefore bring Hedera more transactions.
HBAR is building bullish momentum
HBAR showed limited selling pressure after reaching the historic ATH on January 17. Last week the price fell just over 21% to the lowest price point, followed by a revival in demand mid-week.
The price is already up 13% from its weekly low on January 23, reaching a high of $0.354 in the past 24 hours.
Demand in the spot and derivatives segments is increasing. Spot currents from negative to positive, although spot flows remained relatively weak over the past two days.
Derivatives volume fell to $345.17 million in the past 24 hours. This was the lowest volume since mid-January.
Source: Coinglass
Read Hedera’s [HBAR] Price forecast 2025–2026
Open interest rose 4.65% to $421.59 million over the past 24 hours. There was also a slight decline in Open Interest Weighted Funding Rates over the past 24 hours.
This indicated that the prevailing bullish demand was relatively weak. A limited downside indicated that investors are choosing to HODL most of their coins.