Hedera celebrates yet another milestone as HBAR embarks on recovery

• Hedera’s transaction count blasts past the 12 billion transactions milestone.
• HBAR short liquidations strengthen bullish charge.

It is always interesting to see how blockchain projects fair when the markets are down. Some such as Hedera [HBAR] seem to disregard the bearish market conditions by maintaining healthy network activity.

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Hedera is already seeing benefits from its focus on growth, especially now that the market is in a bullish recovery phase. The network just announced that it crossed the 12 billion transaction milestone. An impressive feat that underscores the continued focus on growth.

#Hedera: 12 Billion Transactions pic.twitter.com/dKkWmvfhND

— Hedera (@hedera) June 22, 2023

The above observation is important especially for Hedera fans wondering about the fate of the network. This is because it has been overshadowed by other top blockchain networks, but the new milestone confirms that Hedera is still enjoying healthy growth.

Why liquidations have been instrumental in HBAR’s latest rally

On-chain data revealed that Hedera maintained healthy development activity since the start of June. Thus, offering more reassurance to investors regarding the state of the network. Despite this, the weighted sentiment metric has only recovered slightly from its lowest level in the last 4 weeks.

The lack of proper stimulation in the weighted sentiment confirms that investor sentiment is still low. Perhaps a sign that investors are not so confident in Hedera’s native cryptocurrency, HBAR. An observation that was also apparent in the derivatives segment during the middle of the week.

The Binance funding rate demonstrated a preference for negative funding rates during the aforementioned period. However, the funding rate has increased in the last 24 hours.

HBAR still managed to achieve a sharp bounce back in the last 7 days during which it rallied by roughly 21% to its $0.050 press time price tag. The upside notably commenced during mid-June after the price briefly dipped into oversold territory.

Source: TradingView

The rally was initially supported by low volumes but a look at the recent volume spike between 21 and 22 June suggests something interesting. The spike may have been due to the subsequent bullish volume by liquidated short traders forced to buy to cover losses.

Source: Santiment

Note that there were negative funding rates during mid-week as stated earlier. In addition, Coinglass data confirmed that there were higher short positions on 20 and 21 June, indicating that indeed many traders expected a bearish outcome.

Source: Coinglass

Realistic or not, here’s HBAR’s market cap in BTC’s terms

We can see based on the above data that the liquidations have indeed contributed to bullish momentum. But then again, volumes have reverted after the spike.

This means lower demand may shift the current trajectory as the weekend approaches, unless it can secure more bullish momentum.