This week has been a roller coaster for the markets, but a mixed bag for Hedera [HBAR]. This is primarily due to the network’s first technical challenge of 2023, which disrupted some aspects of the network.
The Hedera blockchain announced on January 11th that some dApps were experiencing disruptions. The bug affected dApps that used the Hedera JavaScript SDK’s legacy version. According to the update, the bug only affected one node, which resulted in downtime.
Update: Certain dapps on Hedera that were built with legacy versions of the Hedera Javascript SDK (software development kit) are experiencing a temporary disruption. A gRPC web proxy for earlier versions of the SDK points to a node that is currently experiencing downtime.
— Hedera (@hedera) January 11, 2023
A more recent update revealed that the issue has been fixed and the affected node was up and running at press time. While this issue tainted Hedera 2023, it has not had a negative impact on HBAR’s price action until the time of writing.
Hedera bulls push past 50-day MA
HBAR has been on a relentless bullish trajectory so far in January 2023. It managed to push above the 50-day moving average for the first time in the last four weeks after a 30% upside. This was courtesy of the ongoing rally in the overall crypto market.
Source: TradingView
As far as short-term prospects were concerned, the outcome largely depended on the state of the market. The market experienced a sentiment improvement as indicated by the slight upside in the weighted sentiment metric. Demand for HBAR in the derivatives market experienced a surge in the last 10 days.
Source: Santiment
While the short-term has been bullish so far, it may soon manifest some selling pressure, especially from investors that do not anticipate a continued rally into the mid-term to long-term.
While the different unpredictable dynamics make it difficult to provide an accurate forecast, other areas such as development point towards continued growth.
A good example of support for long-term growth is the recent announcement about the push for asset tokenization on Hedera. The Hashgraph Association will reportedly issue a grant worth over $750,000 to facilitate the creation of asset tokenization products on Hedera.
Research & Data Analytics firm @DecimalP announces $750,000 grant from @The_Hashgraph to develop asset #tokenization products on #Hedera in collaboration w/ @sda_institute, citing Hedera’s enterprise-grade aBFT security & unmatched network performance.
➡️https://t.co/iNWuskSTjW pic.twitter.com/4xRzG8qsLL
— Hedera (@hedera) January 11, 2023
This move might bring more utility to the Hedera ecosystem. This also means more developments in 2023. Interestingly, Hedera’s development activity is already off to a healthy start in January.
Source: Santiment
Perhaps the developments planned for this year will foster more organic demand. If that ends up being the case, then it might support organic recovery for HBAR.
