Hedera Reports Record Q3 Revenue Despite HBAR Price Decline
Decentralized ledger platform Hedera reported solid third quarter (Q3) results, aligning with market trends as the digital asset landscape heads into a transformative fourth quarter. Insights into its native token, HBAR, are highlighted.
Hedera Achieves Record Revenue In Q3 Despite Price Corrections
Hedera's circulating market capitalization decreased by 21% quarter-over-quarter (QoQ) to $2.2 billion in Q3, resulting in a market rank drop from 30th to 46th among cryptocurrencies. The circulating supply of HBAR increased by 5% to 37.6 billion HBAR, while the price fell by 20%, from $0.08 to $0.06, reflecting overall market volatility.
Despite these challenges, Hedera achieved substantial revenue milestones. Revenue from network transaction fees reached an all-time high of 27.0 million HBAR in Q3, an 85% increase from the previous quarter, surpassing the prior record set in Q4 2023.
Dollar-denominated revenue rose by 10% QoQ to $1.6 million, marking the second-highest quarter for revenue in USD. The Consensus Service contributed significantly, with revenue increasing by 94% QoQ and accounting for 89% of total revenue.
Total Value Locked In HBAR Rises 9%
Staking activity remained high, with 22.3 billion HBAR staked, representing 59% of the circulating supply. This high percentage is attributed to participation from entities like Hashgraph that engage in network consensus without staking rewards. However, daily average new accounts and active accounts declined by 22% and 23%, respectively, indicating a potential slowdown in user acquisition.
On the operational front, daily average contracts increased by 24%, driven by activity spikes in September. In the decentralized finance (DeFi) space, while total value locked (TVL) in USD dropped 18% QoQ, the TVL in HBAR rose 9%, suggesting the decline in USD value was primarily due to HBAR's price depreciation rather than capital outflows.
Looking ahead, Messari forecasts an increase in circulating supply by approximately 287 million HBAR to support ecosystem development and open-source projects.
HBAR Price Outlook
HBAR, currently trading at $0.069, has shown relatively flat price action entering the fourth quarter compared to major digital assets like Bitcoin (BTC) and Ethereum (ETH). Over the past week, Bitcoin gained 24%, and Ethereum surged by 31%, while HBAR saw a modest increase of 17%.
HBAR remains 90% below its all-time high of $0.5692 reached in September 2021. This contrast is notable as Bitcoin achieves new all-time highs and Ethereum approaches its peak.
HBAR faces three critical resistance levels that could impede upward momentum as the market appears ready to rise. Recently breaking out of a consolidation phase between $0.047 and $0.062, HBAR's first major resistance is at $0.078, a barrier held for four months. Further resistances are at $0.092 and $0.118, corresponding to six-month and eight-month resistance levels, respectively. If HBAR maintains its upward trajectory and breaks these key points, it may approach its previous all-time highs, particularly if gains in Q3 metrics continue translating into price action.
Featured image from DALL-E, chart from TradingView.com