HBAR price analysis: What next for Hedera amid ecosystem woes?

HBAR price has remained under intense pressure this month as attempts to rebound hit a wall. Hedera token was trading at $0.2458 on Monday, down by nearly 20% from its highest level this year. So, what next for the token amid ecosystem woes?

Hedera Hashgraph ecosystem woes

Hedera Hashgraph is one of the biggest players in the crypto industry, with its token having a market capitalization of over $10.3 billion

However, there are lingering concerns about its ecosystem, which is significantly smaller than other chains despite its collaborations with top companies like IBM, ServiceNow, and Google

A closer look at Hedera shows that its ecosystem is relatively small and not as vibrant as other leading chains like Solana and BSC Chain

DeFi Llama data shows that Hedera has just 18 dApps in the decentralized finance (DeFi) industry. 5 of these apps have no activity going on, with their total value locked being zero

Hedera has a total value locked of just $256 million, with Stader, SaucerSwap, Bonzo Finance, and ICHI being the biggest players in the ecosystem.

While $256 million is a substantial amount, it is relatively insignificant in an industry with nearly $300 billion in assets. This situation is likely because the biggest players in DeFi like Uniswap, PancakeSwap, and AAVE have not leveraged its technology

Hedera’s case is different from other top cryptocurrencies like Ethereum and Solana. Ethereum has a market capitalization of over $520 billion and $203 billion in total value locked (TVL).

Hedera also lags in the stablecoin industry, which is expected to do well in the next few years, with Visa estimating it to be worth over $1.6 trillion in this period

Its stablecoin supply has plunged from this month’s high of $208 million to the current $93 million. $93 million is also an insignificant success in an industry worth over $270 billion today

Hedera has no major market share in the crypto industry. For example, while Hedera lists NFTs as a key part of its ecosystem, CryptoSlam data shows that it has no meaningful market share in the industry

The same is true with other industries in the crypto industry. For example, it has no major market share in the gaming industry

Read more: Exclusive interview with Charles Adkins, the new Hedera president

Potential catalysts for the HBAR price

The main reason why Hedera price has done well is its positioning as the biggest player in the enterprise industry. A closer look shows that it has partnerships with top companies like Dell, Google, LG, Nomura, an Australian Payments Plus.

These companies are key parts of the governance ecosystem. Also, the assumption is that these companies will use its technology when building decentralized platforms

The Hedera price is also expected to benefit from a potential HBAR ETF approval, which could lead to increased demand from investors

Hedera price technical analysis

HBAR price chart | Source: TradingView

The other bullish catalyst for the HBAR price is that it has strong technicals. It formed a double-bottom pattern at $0.1280, its lowest levels in April and June this year

Hedera moved above the neckline at $0.2288 and then retested it recently. A break-and-retest pattern is one of the most bullish signs in the market

HBAR price has formed a bullish pennant pattern, comprising of a vertical line and a symmetrical triangle. Therefore, the token will likely have a strong bullish breakout, with the next point to watch being at $0.3028, up by 23% from the current level. A move above that level will point to more gains, potentially to the 2025 high of $0.40

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