In a remarkable turn of events for the cryptocurrency market, Hedera Hashgraph’s native digital asset, HBAR, experienced a meteoric rise on April 13th. The catalyst for this surge was the announcement by financial giant BlackRock that it would leverage the Hedera blockchain to tokenize one of its money market funds.
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The impact of this news was immediate and substantial. Within a 24-hour period, HBAR’s price skyrocketed by an astonishing 100%, propelling it from its previous levels to reach a high of $0.18. This marked the first time in two years that the cryptocurrency had surpassed the $0.15 threshold, a significant psychological barrier for market participants.
Perhaps even more impressive was the surge in trading volumes witnessed during this rally. Data from multiple sources indicates that HBAR’s daily trading volumes experienced a staggering increase of over 5000%, with figures ranging from $2.3 billion to $2.5 billion. This unprecedented level of activity highlights the level of interest and excitement generated by BlackRock’s tokenization plans.
The move by BlackRock to tokenize its money market fund on the Hedera blockchain was facilitated through a collaboration with Archax, a London-based digital asset exchange, broker, and custodian. Additionally, Ownera, an institutional-grade digital assets platform, played a key role in enabling this groundbreaking development.
It is important to note that this milestone follows a similar path taken by abrdn, the largest active wealth manager in the UK, which successfully tokenized its money market funds on the Hedera blockchain last year. These developments collectively underscore the growing institutional interest in leveraging blockchain technology for the tokenization and management of real-world assets (RWAs).
Hedera Price on CoinGecko
While the immediate market reaction to BlackRock’s announcement was overwhelmingly positive, analysts caution that the sustainability of HBAR’s rally will depend on several factors. The Relative Strength Index (RSI), a widely used technical indicator, currently aligns with the bullish outlook, suggesting potential for further price increases.
However, the possibility of profit-taking cannot be ignored. Significant selling pressure is anticipated around the $0.1096 level, where heightened trading activity indicates a substantial presence of sellers. A breach below the 21-day Smooth Moving Average (SMMA) at $0.1038 could challenge the bullish narrative and potentially trigger a downward trajectory for HBAR, with support levels identified around $0.0815.
Despite these potential headwinds, the developments surrounding BlackRock’s tokenization plans on the Hedera blockchain have undoubtedly captured the attention of the broader cryptocurrency community. This move not only validates the growing acceptance of blockchain technology in traditional finance but also underscores the increasing demand for tokenized assets and the potential they hold for revolutionizing asset management.
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Author: Oliver Dale
