Harmony Sheds Gain, Loses 6% in 24 Hours
Harmony (ONE) has lost about 6% of its value in the last 24 hours. Earlier this year, ONE rallied to above $0.30, leaving holders optimistic for the year. But that optimism will now have to be on hold, at least for a while now.
Harmony Down by 6% in 24 hours
ONE is the native token of the Harmony blockchain, a secure and fast platform for decentralized applications. Harmony focuses on the issues affecting popular blockchain networks, such as scalability, fees, and transaction speed. It runs Ethereum applications at 1000 times lower fees and 2 seconds finality.
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The token had a fantastic year in 2021, starting at $0.042 and reaching $0.223 by March. Even though the year was mostly rocky after that, it reached an ATH of $0.3798 by October 2021 before shedding those gains. With over 4500% rise in value in one year, holders had many reasons to be optimistic for the new year.
2022 also started on a bright note for the token due to its price rally during the early days. As of January 8, the token traded for as high as $0.3258, but its current price drop now has it at $0.2886.
What is the Cause of the Decline?
Although it’s hard to determine the factors responsible for the pullback, the general trend in the market makes it unsurprising.
In the past 30 days, most major tokens have lost a chunk of their value. According to data from Coingecko, Bitcoin has dropped by 12%, Ethereum by 20%, Binance Coin by 20%, Solana by 16%. Since the whole market is in red, it’s only a matter of time before ONE was affected.
Beyond that, other factors that might be at work include Harmony’s recent rally to over $0.30 which might have led to investors taking profit as the asset witnessed a rapid move from $0.22 to $0.30. This move could have heavily influenced its recent price movement.
Also, the recent revelation that the Federal Reserves was planning to combat the rising inflation rate through hiking interest rates has affected all markets.
According to available data, the stocks and crypto market has witnessed a pullback due to the news, so the current drop in value only mirrors the overall sentiment in the market.