- Hedera to support the tokenization of Airbnb’s money market fund.
- HBAR sees strong increase but low retail participation – Assessing its implications.
Most top blockchains have a long-term growth strategy. For Hedera, that strategy leans toward real-world assets (RWAs). The latest announcement underlines an important step in the right direction.
Is your portfolio green? View the Hedera Profit Calculator
Hedera’s latest announcement revealed yet another major development. The network reportedly partnered with a platform called Archax to tokenize Airbnb’s money market fund.
The latter is worth billions and therefore represents one of the biggest opportunities for the Hedera blockchain. This also puts Hedera in a unique position to expand its portfolio in favor of more organic utilities.
#Tokenization of real world assets (#RWAs) is fast becoming an important use case of #web3 as businesses, institutions and individuals realize the transformative potential of this technology #blockchain in bringing more liquidity, opportunity and efficiency to traditional financing.#Hedera… pic.twitter.com/hYjFBXZIWn
— Hedera (@hedera) October 26, 2023
The development could give Hedera an edge over the competition, and pave the way for other high-profile tokenization opportunities.
Why is this important? Well, as noted earlier, most top networks have embraced different strategies for long-term growth. Some focus heavily on stablecoins and others double down on dApps.
Hedera has aggressively pushed for tokenization. This could potentially lead to more value flowing into the native cryptocurrency HBAR, especially in the long term.
HBAR reacts positively to the recent bullish dominance
The second half of October initially started with HBAR getting relatively stronger, but the bulls still held back. The good news for long traders was that the price finally responded positively to the strong accumulation. Over the past seven days, the country has seen a 14% rally.
Source: TradingView
Notably, the rally started at the short-term support level of HBAR. This latest rally was also HBAR’s latest attempt to exit its short-term range. Recent observations indicated that it was already experiencing some selling pressure within the $0.053 price level. This was the same level at which it encountered resistance in September.
Moreover, the selling pressure is happening after HBAR entered overbought territory. Data from the chain also indicated that the rally would inevitably be cut short. For example, the Weighted Sentiment metric rose to a four-week high on October 24 and 25 before quickly retreating to near its monthly low.
Source: Santiment
More importantly, despite the recent increase, the volume metric has only shown a slight increase in recent days. Not even close to the highest level of the past four weeks. This could be an indication that the spike was driven by whales and that retail participation was low.
How much are 1,10,100 HBARs worth today?
Low retail demand could not support the recent rally. This isn’t necessarily a bad thing. So far, HBAR has managed to maintain its recent gains. Perhaps retail participation would have provided enough liquidity for whales to make a short-term profit, potentially pushing down the price.
