HBAR Teeters Near Yearly Low as Hedera’s Stablecoin Pools Run Dry

Hedera's native token HBAR flirts with disaster—liquidity crisis hits stablecoin markets just as traders need it most.

Where'd all the stablecoins go? Hedera's DeFi ecosystem shows troubling cracks as USDC and other pegged assets vanish from pools. Network activity flatlines while competitors feast on the scraps.

HBAR bulls face brutal math: shrinking TVL plus evaporating stable liquidity equals textbook death spiral. But hey—at least the enterprise partners still have those PowerPoint slides.

Hedera Stablecoin Supply Hits 90-Day Low

According to DefiLlama, stablecoin supply on Hedera has slumped to its lowest level in 90 days. At press time, this is at $41 million, down more than 80% from last month’s peak of $216 million.

This decline suggests weakening demand for on-chain liquidity and signals a broader slowdown in user activity across the network.

Stablecoins are used as a proxy for market participation and capital inflows. Therefore, the drop in their supply on Hedera indicates that fewer users are transacting, deploying capital, or seeking yield on the network. 

This lowers the demand for HBAR and puts more downward pressure on its already-struggling price. HBAR could see sustained selloffs in the short term without a resurgence in stablecoin momentum on the network. 

Furthermore, HBAR’s multi-month decline has pushed its price below its Ichimoku Cloud. At press time, this momentum indicator’s Leading Spans A and B FORM resistance above the token’s price at $0.15 and $0.17, respectively. 

The Ichimoku Cloud tracks the momentum of an asset’s market trends and identifies potential support/resistance levels. When an asset trades below this cloud, it reflects the bearish pressure in the market. It means demand stalls while selling pressure spikes.

For HBAR, the $0.15 and $0.17 price marks represent dynamic resistance zones, reinforcing the likelihood of continued decline if the price remains below these levels.

HBAR Struggles Near YTD Lows

HBAR currently hovers just above the $0.13 level, according to readings from the HBAR/USD daily chart. This price zone marks a crucial support floor and represents the altcoin’s year-to-date low. If demand weakens, HBAR could revisit this critical level and potentially break lower.

However, the bearish outlook may be short-lived if buyers return to the market. A resurgence in accumulation could invalidate the current downtrend, with bulls eyeing a MOVE above resistance at the $0.15 level. 

A successful breakout at this level may open the door for the HBAR token price to rally toward $0.17.