Hedera made some significant developments in 2022, paving the way to become an NFT powerhouse. A price pivot could be on the way, as HBAR was coy about oversold conditions despite the downside.
Now that 2022 is winding down, it’s time to recap the performance of some of the top-tier firsts. Hedera [HBAR] rose to prominence over the past year, as it saw some significant developments that may lay the foundation for strong growth in the future.
There were notable developments and partnerships in 2022 that underlined Hedera’s potential for further growth in the NFT market. These included the network’s collaboration with LG Art Lab, a partnership that aimed to facilitate the distribution of NFTs.
Hedera’s Partnership with LG Art Lab
In a December 27 tweet, LG Art Lab reiterated its commitment to building the Hedera network despite the challenges facing the market in 2022:
“As the markets continue to work out the inner details of FTX’s collapse, HBAR has had volatile movements as projects continue to build on top of Hedera. In a recent interview with HBAR Foundation’s Chief Legal Officer, he stated that Hedera has already issued grants to more than 150 projects that are currently building on Hedera layer 1 hashgraphs. Regardless of external conditions, companies will continue to adopt and leverage this nascent technology and industry. Hedera continues to show promise as an industry-leading hashgraph solution.”
The LG Art Lab update also confirmed that it was already building more than 150 projects on the Hedera network, thus contributing to healthy network adoption despite unfavorable external market conditions.
Such partnerships and developments will allow Hedera to play a bigger role in the mass adoption of NFTs.
2022 wasn’t exactly the best year for Hedera NFTs. Although it kicked off with healthy NFT trading volumes at the beginning of the year, demand waned as the market faced external economic pressures.
The partnership with LG Art Lab can facilitate faster adoption of digital art, which can be displayed through LG screens. This would encourage support not only in the NFT market but also in the art industry. However, what this means for HBAR performance remains to be seen.
Can Hedera’s NFT Activity Revive the HBAR Lawsuit?
Hedera’s market impact was reflected in HBAR’s price action, which was heavily discounted in 2022. Its price of $0.040 is the same it was trading at in January 2021.
Is a pivot being worked on? HBAR is still slightly below oversold conditions despite the downside. Its RSI indicated positivity after retesting its lower range for the second time in the last four weeks. Also, its weekly volatility metric has changed in the last two days, indicating more incoming volatility.
The increased volatility was also accompanied by a rally in Hedera’s Binance funding rate, suggesting that there was some demand stimulus for HBAR in the derivatives market at the moment. This was especially interesting because a resurgence in demand for derivatives often precedes demand in the spot market.
The above analysis meant that HBAR bulls could show their muscles in the coming days. The price drop can also be a great opportunity for long-term holders looking for a deeply discounted entry point.
By Audy Castaneda
