Hedera [HBAR] is a proof-of-stake (PoS) public network powered by a hashgraph consensus algorithm. In a new report by Messari, the blockchain data analytics firm noted that while registering some declines, the Hedera blockchain also made significant strides last quarter as compared to its performance in the first quarter of the year.
A decline in market capitalization
It is common knowledge that the last quarter was bad for the cryptocurrency market. The market capitalization of the entire market suffered a 58% decline.
The Hedera network was not shielded from the losses as it also posted a 71% decline in its market capitalization. Messari found that the chain ended the quarter with a market capitalization of $1.4 billion after seeing a market capitalization of $3.3 billion in the year’s first quarter.
A decline in total transactions
According to Messari, Hedera also suffered a significant decline in the total transactions processed on the network last quarter. With a 76% monthly decline, it processed an average of 19 million transactions every month between April to June.
In the first quarter, the chain saw a total transaction of 76 million per month.
Interestingly, despite the decline in completed transactions on the network, Messari found that the network saw a growth in its active user base in the last quarter. According to the report,
“Despite the drop in transactions, active users increased for the second consecutive quarter. During Q2 2022, Hedera averaged 33,000 active users per month, a 51% increase quarter over quarter and a 110% increase compared to Q4 2021.”
With 258,000 NFT transactions processed on the network only in the last quarter, Messari found that the NFT ecosystem within Hedera was on the rise. The 258,000 NFT transactions came from 8,260 users.
The HBAR coin
According to data from CoinMarketCap, the price of the HBAR coin suffered a significant decline in the last quarter. Pegged at $0.24 at the beginning of the quarter, the price per HBAR coin went on to drop by 75% in the three-month period.
As a result, the coin closed the quarter at an index price of $0.060 per HBAR coin. Within the period under review, the coin’s market capitalization also dropped from $4.61 billion to $1.29 billion.
Furthermore, as per on-chain data from Santiment, in the last quarter, the HBAR coin registered a 15% decline in the percentage supply of the HBAR coin held by its whales.
On the other hand, development activity on the network rallied by 13%.
Messari also revealed that Hedera averaged 6,000 developer activity events per month in the last quarter.