The cryptocurrency market witnessed a remarkable surge on April 24, 2024, as Hedera’s native token HBAR skyrocketed by more than 100% in a single day. The catalyst for this substantial price increase was the announcement that BlackRock, the world’s largest asset manager with over $10 trillion in assets under management, will tokenize one of its money market funds on the Hedera blockchain.
TLDR
- Hedera’s native cryptocurrency HBAR surged more than 100% in a day, reaching a two-year high of $0.1817 on April 24, 2024.
- The rally was triggered by the news that BlackRock, the world’s largest asset manager, will tokenize its money market fund on the Hedera blockchain.
- HBAR’s trading volume skyrocketed by over 6000%, reaching $2.5 billion, and its market capitalization stood at $5 billion, making it the 23rd largest cryptocurrency.
- This development follows a similar move by abrdn, the UK’s largest active asset manager, which tokenized its money market funds on the Hedera blockchain last year.
- The integration of blockchain technology in the financial sector is seen as a potential game-changer, and HBAR’s rally reflects the growing interest in this space.
The tokenization of BlackRock’s ICS U.S. Treasury Fund was facilitated by Archax, a London-based digital asset exchange, broker, and custodian, in collaboration with Ownera, an institutional-grade digital assets platform. This move follows in the footsteps of abrdn, the UK’s largest active asset manager, which successfully tokenized its money market funds on the Hedera blockchain in 2023.
The news of BlackRock’s foray into the realm of blockchain technology sent shockwaves through the cryptocurrency market, with HBAR’s price surging from a low of $0.0874 on April 24 to an intraday high of $0.1817, marking a 107% increase. This remarkable rally pushed HBAR’s price to levels not seen in more than two years, reaching a market capitalization of $5 billion and securing the 23rd position among the top cryptocurrencies by market capitalization, according to CoinMarketCap.
https://twitter.com/HBAR_foundation/status/1782759384742813951
The trading volume for HBAR also experienced a staggering increase, jumping by an astonishing 6565% over the previous 24 hours to reach $2.75 billion. This surge in trading activity is a clear indication of the heightened interest and participation from both retail and institutional investors in response to BlackRock’s tokenization plans.
Analysts suggest that the integration of blockchain technology within the financial sector, particularly by industry giants like BlackRock, underscores the growing recognition of the potential this technology holds for transforming traditional asset management. The tokenization of assets on blockchain networks provides enhanced transparency, security, and efficiency, paving the way for a more streamlined and accessible financial ecosystem.
While HBAR’s rally has been impressive, it is important to note that the cryptocurrency’s price is still 75% below its all-time high of $0.5701 reached during the 2021 bull run. However, technical indicators such as the relative strength index (RSI) and the upward movement of moving averages suggest that there may be room for further upside potential if buying pressure continues.
