Holochain (HOT) Price Spikes Another 31%; Is Holo Fuel Driving Recent Growth?
Holochain (HOT) continued its rapid ascent on Wednesday with a 31% price spike over a fifteen hour period, and a $10 million influx to trade volume. The project received a mainstream bump last night with an article on Nasdaq.com, wherein it was suggested that the lead up to Holo’s upcoming token changeover could be fuelling recent growth.
That changeover will see HOT tokens swapped out for Holo Fuel – a functional token tied to the global computing power of every host on the Holo network.
Holochain’s Rapid Rise
The value of Holochain’s current network token, HOT, increased by over 92% in the last two weeks. Just three days ago the token went on a 25% run following a positively glowing assessment in the latest edition of the Weiss Cryptocurrency Ratings.
The 381% increase to trade volume at the time seemed huge at the time, but in the three days since then that figure has been blown out of the water. HOT trades jumped 1,463% in volume in the last three days, and peaked at $17.2 million – up from Sunday’s $1.1 million.
All of this adds up to a rapid change of fortune for Holochain, which had fallen from prominence after some bullish moves back in Q2 and Q3 of 2018. Indeed, HOT’s all-time high remains $0.002002 – recorded in March of last year, and still a 150% increase away from the current price of $0.000798.
What is Holo Fuel?
Last night’s article posted on Nasdaq.com posited that Holochain’s current ascension is being fuelled by Holo Fuel. That’s an upcoming token on the Holo network which will replace the current HOT token.
Holo Fuel has been the centre of much study recently, and this Medium article goes some way in explaining the economics behind it. Bear in mind that Holochain doesn’t use blockchain architecture, and its Distributed Hash Tables (DHT) represent a case of a distributed network, rather than a decentralized one – although a distributed network is by nature also decentralized.
According to the FAQ section on the Holochain website, Holo Fuel will be asset backed and value-stable. Here’s how:
“Holo fuel is backed by the computing power of hosts like you across the globe. The value of Holo fuel is connected to the computing capacity of the network of hosts. This capacity evolves and changes slowly and isn’t subject to huge spikes and crashes the way other speculative tokens are.”
Expect more on Holo Fuel in the coming weeks. No hard date has been set for the changeover as of yet, although it’s expected to take place in 2019.
Holo Price – HOT/USD
HOT jumped another 31% in value leading into Wednesday morning. The token price jumped from $0.000607 up to $0.000798 in little over fifteen hours. Trade volume went from $7M to $17M in that time period, with 92% of that being processed on Binance alone.
A subsequent pullback to the $0.000720 range leaves HOT way above monthly highs, but still a solid 50% increase away from quarterly peaks.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.