- Harmony struggled as transactions and daily activity declined.
- New developments and increased volume provided hope for the future.
Harmony [ONE], a layer 1 blockchain, faced several challenges in the last quarter, resulting in a decline in its overall transactions and daily activity. According to Messari, the protocol saw a substantial drop in its number of transactions. This led to a decline in revenue, consequently leading to a drop in users.
Source: Messari
Read Harmony’s [ONE] Price Prediction 2023-2024
The DeFi angle
One factor contributing to this decline was the departure of a popular dApp, DeFi Kingdoms, from the Harmony ecosystem. This also led to a decline in the platform’s Total Value Locked (TVL), which fell from $113 million to $7.7 million at press time.
In addition, the number of stakers on the network decreased by 2.27% over the past month, standing at 106,470 at press time.
Source: Defi Llama
Furthermore, the weighted sentiment around Harmony also declined, suggesting that the crypto community had more negative things to say about the network than positive. Despite this, volume and development activity on the network increased.
The growing volume suggested higher liquidity for Harmony’s ONE token, while the growing development activity implied that there could be new updates and upgrades coming to the protocol soon.
Source: Santiment
How much are 1,10,100 ONEs worth today?
“One” of many problems
However, with the increase in volume and development activity, the volatility of ONE also rose, making it a riskier investment. Additionally, the market cap dominance of ONE declined, capturing just 0.03% of the overall crypto market at press time.
Source: Messari
Despite these challenges, there was hope for the future of Harmony as new developments could provide a boost to the protocol. As the crypto market continues to evolve, it will be interesting to see how Harmony adapts and bounces back from these recent difficulties.
