The Harmony ONE price has pulled back in the past few days as demand for the coin remains at a substantially low level. The coin has crashed to $0.023, which was the lowest level since July 19th of this year. It has dropped by more than 16% from its highest level on Thursday, bringing its total market cap to over $284 million.
What happened to Harmony?
Harmony is a blockchain project that was recently one of the biggest challengers to Ethereum’s dominance. The network was created using a technology known as sharding that was first introduced by Zilliqa.
Sharding creates scale and throughput in blockchains by breaking down the blocks into smaller pieces known as shards. Harmony’s sharding solves the two main challenges that Zilliqa has. It introduces the concept of dividing the storage of blockchain data. Further, it solves the challenge of Proof of Work (PoW) by using a proof-of-stake approach.
As such, Harmony is fully scalable, has secure sharding, is highly efficient, and has consistent cross-shard transactions. All these qualities made it well received by developers. Some of the top applications that have been created in Harmony are DeFi Kingdoms, Tranquil Finance, Synapse, FoxSwap, and SushiSwap.
Recently, however, the Harmony ONE price has struggled as the number of people using its applications has dropped dramatically. Indeed, the total value locked (TVL) locked in the ecosystem has crashed from over $1.5 billion to just $43 million.
While most blockchains, including Ethereum, have seen a sharp decline of TVL, Harmony’s has been more dramatic. Analysts believe that the situation is mostly because of the recent $100 million hack that was attributed to North Koreans. The hack happened after the attackers managed to breach a bridge that connected Harmony to Ethereum.
Therefore, while many blockchains have recovered part of their TVL recently, Harmony’s has continued to drop in the past few months.
Harmony ONE price prediction
The four-hour chart shows that the ONE price has been attempting to recover in the past few weeks. It has risen by about 42% from its lowest level this year. The coin remains above the ascending trendline that is shown in black.
Harmony has moved slightly below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) is pointing downwards.
Therefore, the coin will likely continue falling considering that the recovery has found a strong resistance at about $0.027.