- Revenue Climbs as Network Activity Increases
- Karate Combat League Drives Significant Network Activity
- Changes in HBAR Market Cap and User Activity
According to a report from research firm Messari, Hedera (HBAR) experienced a notable surge in daily transactions during the second quarter of 2024, marking a 46% increase quarter-over-quarter (QoQ). The growth was mainly attributed to the Hedera Consensus Service.
Revenue Climbs as Network Activity Increases
For the second quarter of 2024, Hedera had a very good financial situation in terms of several aspects. The network revenue, primarily derived from transaction fees, recorded a 26% growth in USD from $1.1 million in the first quarter to $1.4 million in the second quarter. In HBAR terms, revenue also rose by 19% QoQ to 14.6 million HBAR. Despite this, the HBAR’s circulating market capitalization reduced by 29% and stood at $2.7 billion, attributed to a 33% decline in its price from $0.11 to $0.08.
Karate Combat League Drives Significant Network Activity
One of the major drivers of activity on the Hedera network in Q2 was the Karate Combat League. This project integrates blockchain technology into its fan engagement strategy. The KARATE token enables fans to vote on match outcomes and is built on both Hedera and Ethereum networks. For instance, during the KC45 event on April 20, 1.74 billion KARATE tokens were staked with 65,300 contributors from Hedera and Ethereum. Subsequent events like KC46 and KC47 also saw significant participant engagement, with KC47 on June 28 involving 117,800 unique voters and 3.17 billion KARATE tokens voted.
Changes in HBAR Market Cap and User Activity
HBAR's market capitalization declined by 29% in Q2 2024, despite seeing growth in previous quarters. The average daily number of newly created accounts rose by 31% QoQ from 8,400 in Q1 to 11,100 in Q2. However, the total daily active addresses decreased by 37%, indicating a drop in active transactions from existing accounts. As of the time of writing, HBAR has seen a 21% decline over the past month, trading at $0.051. This decline can be linked to broader market volatility and fluctuations in major cryptocurrencies like Bitcoin and Ethereum.
The second quarter of 2024 resulted in significant gains in transaction volume and revenue for Hedera, despite a drop in HBAR market cap. New initiatives like Karate Combat are driving increased blockchain usage.
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