Harmony struggled as transactions and day-to-day activities declined. New developments and a larger volume offered hope for the future.
Harmony [ONE], a layer 1 blockchain, faced several challenges in the past quarter, resulting in a drop in total transactions and day-to-day activity. According to Messari, the protocol saw a substantial drop in transactions. This led to a drop in revenue, which led to a drop in the number of users.
Source: Messari
Read Harmonies [ONE] Price forecast 2023-2024
The DeFi corner
A contributing factor to this decline was the departure of a popular dApp, DeFi Kingdoms, from the Harmony ecosystem. This also led to a drop in the platform’s Total Value Locked (TVL), which fell from $113 million to $7.7 million at the time of going to press.
In addition, the number of strikers on the network fell 2.27% over the past month to 106,470 at the time of going to press.
Source: Defi Lama
In addition, weighted sentiment around Harmony also declined, suggesting that the crypto community had more negative things to say about the network than positive things. Despite this, volume and development activity on the network increased.
The growing volume suggested higher liquidity for Harmony’s ONE token, while growing development activity implied that new updates and upgrades to the protocol could be coming soon.
Source: Sentiment
How much are 1,10,100 ONEs worth today?
“One” of many problems
However, with the increase in volume and development activity, ONE’s volatility also increased, making it a riskier investment. Moreover, ONE’s market cap dominance waned, capturing only 0.03% of the total crypto market at the time of writing.
Source: Messari
Despite these challenges, there was hope for the future of Harmony as new developments could give a boost to the protocol. As the crypto market continues to evolve, it will be interesting to see how Harmony adapts and recovers from these recent difficulties.
This post No harm no fault for ONE holders despite Q4 performance
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