Hedera Price Surge: What’s Behind HBAR’s 400% Rise?

In 2024, Hedera’s ecosystem experienced significant growth, along with increased institutional adoption and strategic technological advancements. These developments contributed to HBAR’s 400% price surge in November.

Hedera’s HBAR token is one of the crypto market’s highest gainers of November. HBAR rallied over 400% in a month, reaching its highest value of $0.25 in a year. Hedera is a public distributed ledger built on the hashgraph consensus algorithm. Unlike traditional blockchains that rely on proof-of-work or proof-of-stake mechanisms, Hedera uses hashgraph, which provides faster transaction speeds, low energy consumption, and high throughput.

It’s designed to support enterprise-grade applications, offering features like smart contracts, file storage, and a native token service. Hedera’s governance model is unique, as it is overseen by a council of global organizations, including Google, IBM, and Boeing, ensuring decentralization and decision-making transparency.

So, with the altcoin season seemingly in full swing, will HBAR continue to rally, and is it a good time to invest?

An overview of Hedera

Hedera stands apart from other blockchains due to its hashgraph consensus algorithm, which is fundamentally different from traditional blockchain architectures. While blockchains typically use proof-of-work or proof-of-stake models, hashgraph relies on directed acyclic graph (DAG) principles, ensuring faster transaction speeds, lower costs, and higher energy efficiency.

Here are the key differentiators:

1. Performance: Hedera achieves thousands of transactions per second with finality in seconds. Traditional blockchains like Ethereum are often bottlenecked by lower throughput and higher latency.
2. Energy efficiency: Hashgraph consumes minimal energy compared to proof-of-work blockchains, making Hedera more sustainable for large-scale applications.
3. Governance model: Hedera is governed by a council of multinational organizations, such as Google, IBM, and Tata Communications, ensuring decentralized and credible decision-making. This contrasts with many blockchain projects where governance is often limited to token holders or concentrated in developer teams.
4. Fairness and security: The gossip-about-gossip protocol combined with virtual voting ensures fair ordering of transactions and Byzantine fault tolerance (ABFT), providing strong security without compromising performance.
5. Native services: Hedera offers integrated services like the Hedera Token Service (HTS) and Hedera Consensus Service (HCS) for tokenization and event logging. These services are built directly into the platform, avoiding the need for third-party layer-2 solutions.

Why is HBAR up by 400%?

HBAR’s remarkable 400% surge in November stems from several key factors. Hedera has seen continuous development and optimization efforts throughout 2024, which has improved its credibility and created optimism around its long-term sustainability.

In January, the Hedera Council allocated 4.86 billion HBAR (approximately $408m) to bolster network growth and decentralized governance. This funding supports initiatives by the HBAR Foundation, the Hashgraph Association, and the DLT Science Foundation.

By November, Hedera’s decentralized finance ecosystem surpassed $154m in total value locked (TVL), with stablecoins accounting for over $17m. This growth shows the network’s increasing adoption and reliability. Also, the Hedera Governing Council expanded to include major fintech organizations such as Hitachi, Australian Payments Plus, Mondelēz International, and BitGo, bringing the total to 32 institutional validators. This diversification improves the network’s decentralization and governance effectiveness.

The network also showed a positive commitment to open-source development. The project team transferred Hedera’s core network software to the Linux Foundation, establishing the vendor-neutral project Hiero.

These continuous developments and the ongoing bull market drove HBAR’s price to its yearly high, and it has since maintained the momentum.

HBAR price prediction for 2025

As of 2 December, HBAR is trading at approximately $0.241. Analysts’ projections for HBAR’s price in 2025 vary significantly. Some forecasts suggest a minimum price of $0.0821, while others anticipate a maximum of $0.80.

However, the overall price projection for HBAR remains bullish for next year. This is because, in 2025, Hedera plans to enhance its network by introducing permissioned, community-operated mainnet nodes, further decentralizing its infrastructure. Additionally, enabling mirror nodes to display verified source code for deployed smart contracts will increase transparency and security, building greater trust among developers and users. These initiatives could push HBAR’s market cap higher and influence an extended bullish cycle for the altcoin.

1. 01.

   What is the HBAR token?

   

   HBAR is the native cryptocurrency of the Hedera network, serving as both fuel for network services and a means of securing the network through staking. Users utilize HBAR to pay for transactions, such as transferring tokens, executing smart contracts, and managing fungible and non-fungible tokens. Additionally, staking HBAR to network nodes influences consensus, enhancing the network’s security and integrity.

2. 02.

   What is an altcoin season?

   

   Altcoin season refers to a period when alternative cryptocurrencies (altcoins) outperform Bitcoin in terms of price appreciation. This phase is characterized by significant gains in altcoin prices, often accompanied by increased trading volumes and a decline in Bitcoin’s market dominance. Investors typically shift focus to altcoins during this time, seeking higher returns from emerging digital assets.

3. 03.

   Is Hedera (HBAR) a good investment?

   

   Determining whether Hedera (HBAR) is a good investment depends on individual investment goals and risk tolerance. Hedera’s unique hashgraph consensus mechanism offers advantages like high throughput and low latency. The network’s governance includes major organizations, enhancing its credibility. However, as with any cryptocurrency, HBAR’s value is subject to market volatility and regulatory considerations. Potential investors should conduct thorough research and consider their own financial situations before investing.