Hedera Hashgraph (HBAR) price was the best-performing major cryptocurrency on Wednesday morning as investors cheered its progress on tokenization. The token surged by over 78% in the past 24 hours and by over 108% in the past 7 days.
BlackRock turns to Hedera
The main reason why Hedera Hashgraph token surged is that it has become a big player in the Real World Tokenization (RWA) industry.
Tokenization is the process where real physical assets are converted into tokens that are backed by the blockchain technology. Tokenized assets can then be traded and moved easily.
In a statement, Hedera Foundation said that BlackRock had tokenized the ICS US Treasury money market fund (MMF) on its network. This is a major factor because Blackrock is the biggest asset manager in the world with over $10.5 trillion in assets. The ICS MMF is Blackrock’s second tokenized asset after BUIDL, which it tokenized in March.
BlackRock is the second major player to launch a tokenized asset on Hedera Hashgraph. Abrdn, formerly known as Standard Life Aberdeen, is also in the process of launching its tokenized asset on Hedera. Its decision was easy since it is part of Hedera’s governing council. Abrdn is a major company with over $100 billion in assets.
The decision by Abrdn and Blackrock to select Hedera is important since it could push more companies to do the same. For example, the London Stocks Exchange (LSE) could select the network as it prepares to tokenize some assets in the exchange. Other companies that could embrace tokenization are ANZ, Invesco, and Franklin Templeton.
Companies are selecting Hedera because it is one of the fastest blockchain in the industry. It handles thousands of transactions per second at a fraction of the cost.
Hedera Hashgraph price forecast
The HBAR price went parabolic on Wednesday morning as I predicted in this report. It surged to a high of $0.1820, its highest point this year. This increase was a major one considering that it bottomed at $0.068.
The token has moved above the crucial resistance point at $0.1412, its highest swing on March 13th. By moving above that level, the price invalidated the double-top pattern that has been forming.
Hedera Hashgraph has moved above the 50-day and 100-day moving averages, which is a positive sign that bulls are in control. Therefore, I suspect that the token will now retreat a bit and retest the key support at $0.1412, which is about 14% below the current level. That retreat will happen because the Blackrock news have already been priced in.
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