Hive Worth $6.70 With Smart Contracts

in LeoFinance2 years ago

How much would Hive be worth with a robust smart contract layer where decentralized finance application could be spun up along with tokens?

This is a tricky question since we have no idea how markets will respond. What we do know, however, is that we saw a similar project in UST and LUNA. The failed stablecoin did have some issues that Hive has addressed. For this reason, we can look to this analysis as a baseline for what is taking place.

In this article we will take a look at what is going on with Terra along with the advantages that hive can leverage.

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$2.5 Billion

We all know the story Terra and how UST collapsed, causing the loss of billions. This has given the entire stablecoin market a black eye. It also really turned many people off to the idea of algorithmic driven stablecoins.

The problem with this viewpoint is that it is akin to disregarding search because AskJeeves is not longer around. One failed project does not negate the entire opportunity.

Of course, can we call Terra a failed project? In looking at the residual value that is tied to the ecosystem, we see that the fractured ecosystem is still worth $2.5 billion.

This is not all in the value of the coin. There are different applications with tens of millions in DeFi money still locked. Some of this has grown over the past few months.

Nevertheless, using this as a barometer, we can see how, if equated to Hive, this puts $HIVE at $6.70.

Is it possible for ecosystem to get to this level?

Utility

Hive has something that Terra did not outside of DeFi: utility.

Sure, some can make the case that the LUNA token was the "gas" fee on Terra just like we see on Hive. However, outside DeFi trades, what was resident on that chain. With Hive, we have a more expansive use of the base layer coin.

Staking $HIVE allows for more than just speculation. The access to the blockchain enables the playing of games, via posting Customer JSONs. One can also post long form text that is stored in a decentralized manner. As of Hard Fork 26, the ability to delegate Resource Credits to other accounts is now possible.

Through the expanding of utility, the ability to create demand for the coin keeps increasing. Over time, it is likely that posting directly to the blockchain will get more expensive. This means more Resource Credits will be required.

How much is decentralized data storage which is immutable worth? That is the multi-billion question. At this point, not a lot put much into that. Perhaps, as other chains get revealed for their centralization, and potential KYC, things could change.

At the end of the day, Hive is a permissionless database that stores long form text. The only requirement is to have enough Resource Credits to operate. This only comes from Hive Power.

Hive Backed Dollar (HBD)

To some, the mentioning of the Hive Backed Dollar (HBD) brings up the memory of UST. This is an issue since the only similarity between the two is they qualify as algorithmic stablecoins.

Terra has no precautions in place to prevent an attack. This was an advantage since, when things were running up, it was able to expand without issue. However, there were also attack vectors which caused problems. For example, it could create a near unlimited amount of UST. As long as the price of LUNA kept surging, UST was printed.

Naturally, this created a major vector of attack when the vulnerabilities were exploited. With tens of billions in UST, the value of LUNA did not cover it. Even the Bitcoin reserve was completely useless.

Hive looks to address this in a couple ways.

The first is the fact there is the haircut rule. Under this situation, when the market capitalization, in USD, of HBD reaches 30% of $HIVE, the blockchain stops generating HBD. The conversion mechanism is essentially frozen until the ratio returns to a safer level.

There were times where the market cap of UST exceeded that of LUNA. We can see how poorly designed that was as a reserve.

Another area that we are seeing a major difference is in the area of utility. At the moment the use cases for HBD are minimal. This is not the end of the world since the expansion is very slow. Thus, a lot of HBD is not required at the moment.

That will not be the case in the future. A number of ideas are being worked through to see if we can provide some greater utility, thus establishing resiliency within the Hive ecosystem.

Some are:

These are just a couple of propositions on the table with different teams. All provide a use case for HBD while also helping to protect the network even more.

Again, this is not something we saw with Terra.

Outside Of DeFi

Terra was solely interested in DeFi applications. There is little doubt this is a quick way to ascend. The money tied to the financial arena can be mind blowing. We witnessed how fast it was to $50 billion in market value.

That said, there is another area that Hive separates itself. We are focusing upon more than just the financial arena. Commerce is also something that is vital to the ongoing success of an ecosystem.

In the digital era, this means social media is a part of the story.

Elon Musk made headlines with his idea of turning Twitter into "the everything app". What is interesting is that, when we look at Hive in totality, any front end can be the everything application. Blockchain, by default, is a payment system. It is built in with cryptocurrency. So while Musk is going to, presumably, build a payment system into Twitter, we already have a powerful one in operation.

The other advantage is that it is fast (a smidge over 3 second settlement time) and feeless (only require RCs to engage with the chain). Musk is looking to rake in billions each year in transaction fees.

This makes Hive an idea base layer to build commercial applications. There is a built in stablecoin with an internal exchange. The wallet system is standard as well as being easy to use (individual names instead of just numbers). A smart contract platform opens the door for second layer offerings such as NFTs. This could be tied to a host of options, appealing to the user base.

As we move into a world where communities are the main source of economic activity, Hive will be well positioned. Layer 2 smart contracts will make Hive a multi-billion dollar chain.

If we achieve the level of the tattered Terra ecosystem, we are looking at a price of $6.70 for each HIVE.

Of course, even at this level, Hive is still worth a fraction of what Terra was at its peak.

This is something to keep in mind as development expands within the ecosystem.


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I think in the next bull season the price of Hive @$6.70 will be an easy target! Hive is unique from the conventional ones and the increasing number of projects from social networking to NFT-based gaming sectors is making Hive dominant the bear market can't affect too hardly nowadays as the price is returning to it's previous price very quickly after the sudden dump which is a great sign for the future.
!PIZZA

The $10 mark by 2025 should be a relatively acceptable target. A good bull run, and it will push a lot higher. Remember, when pushing past $3 in 2021 there was a lot less happening on the blockchain than what will be taking place in 2025.

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Could be a pump too.

Markets do what they wilt. Wht is important is to keep growing and expanding. That is where the difference will come in.

A lot of interesting stuff happening in crypto right now. Hive is standing out more and more each day as we see some things revealed.

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That's what is going to make all the difference...

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I am not sure it is easy and with bulls, anything is possible. Taken from a development standpoint, I think we will have to see what rolls out. If we get a smart contract platform that developers can add to and we get the DeFi rolling out many of us mentioned, it is doable.

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Any smart contract for Hive would have to be layer 2 to keep performance good. Ethereum is a smart contract platform and they realized they had to go layer 2 for scaling. One of the huge advantages of Hive is performance but smart contracts on layer 1 would compromise that.

Ethereum wanted smart contracts on Layer 1 but they realized that it was taxing the blockchain so they will implement sharding, but sharding is hard and is basically layer 2 at a protocol level. But because it is hard when they finish that the layer 2 stuff will be so well developed that they won't exactly need sharding anymore, although it will be welcome.

Hive needs a layer 2 solution with good smart contracts, because Hive Engine is not that good yet, but I don't think we should have smart contracts at layer 1 at all.

I think we don't have that yet because our blockchain is very small, like under half a billion dollars in market cap, so because of that not many brains are looking at developing here. We have some great devs, but we lack quantity and diversity (that comes with quantity).

The Hive fund helps attract developers, but still the more the better.

I dont hear of many proposing smart contracts at the base layer. In fact, many are supporting second layer platforms.

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After four years of rattling around this blockchain space, I'm a firm believer that utility is the biggest indicator of the value of a blockchain. It follows the mantra of "if you build it, they will come". A chain such as BTC has a singular purpose, a cryptocurrency. Ethereum, along with other EVM-compatible and other Turing complete VMs, provides a global computer to run on. Hive has a huge potential to differentiate itself as the de facto social chain augmented with processing capability. Exciting times in this technology space IMHO.

We will see how the EVMs evolve. Will the question of centralization become a major concern? It is cropping up but, in the end, do people really care?

Perhaps not.

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How much is decentralized data storage which is immutable worth? That is the multi-billion question. At this point, not a lot put much into that. Perhaps, as other chains get revealed for their centralization, and potential KYC, things could change.

When you add image and video storage, this gets serious. What is it worth to have your memories stored permanently, even if you aren't able to get online to renew a service for whatever reason?

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Yes those are important too but they are certain layer 2 solutions since Hive only houses text. Anything else requires another solution.

IPFS does offer hope there.

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but they are certain layer 2 solutions since Hive only houses text

Yes, but they are within the Hive ecosystem. To the average person just getting started, that makes them part of Hive. Which is going to be a big draw amongst the general public :) ...

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Lots of good information. $6.00+ Hive doesn't seem impossible even in the short(ish) term. The last bull run we reached $3.00+. The next bull run its likely we will be starting at a higher low and thus likely pushing to higher highs. Of course its all speculation and only time will tell.

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The last one was a pump so hopefully we can get something more sustained this time.

Only time will tell. Markets do their thing. Development, on the other hand, that has a lasting impact.

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As of Hard Fork 26, the ability to delegate Resource Credits to other accounts is now possible— this unique utility the hf26 brings to Hive unlocks a whole new mode/level as regards how decentralized finance dictates are being practiced.

The other advantage is that it is fast (a smidge over 3 second settlement time) and feeless (only require RCs to engage with the chain). Musk is looking to rake in billions each year in transaction fees - Before I used to wonder why Musk ignores Hive because I’m sure he must have an idea of this blockchain’s existence until he declared his ambitions to acquire Twitter. Then I realized a leopard can never lose its spot , centralized bodies can’t fathom the idea of distributed resources without any form of control at the center .

Hive has nothing to offer Musk. People keep asking why he ignores Hive...why wouldn't he?

Why would he opt to even be interested in Hive?

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For one he can be sure of bots not behind so many accounts on like Twitter. Lol , just saying ! Thanks for the engagement!

I think I'm getting the big picture now. The goal is to increase the use cases for both Hive and HBD.

The built-in social aspect of Hive is one of the things that sets the blockchain apart.

That is my view, yes. You built value for both coins separately. Then, the fact they are correlated means they are even more powerful.

It is amazing to see how much potential there is. By pushing value to HIVE, it serves as a stronger reserve for HBD. Then by pushing value to HBD, it does the same for HIVE.

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With smart contract available on Hive coupled with the numerous use cases the chain is capable of handling, $6.70 per Hive token is feasible with the possibilities to surpass $6.70.

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If that happens I will be rich 🤑

There will be a lot of people around here who will say that and it is well deserved.

I hope you become rich beyond your wildest dreams.

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I hope so you will be super rich as well🤑🤑🤑🤑🤑🤑

I am an enthusiast of technological advances in all branches of knowledge, today digital is the universal trend and it is logical that the strengthening of virtual currency is inevitable. Soon we will have a chain like BTC parallel to hive as blockchain. The trend is and will be cryptocurrency, and great efforts are being made to this end. In the near future we will have news that will continue to revolutionise these platforms for the benefit of all users and new users that innovation will bring.

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What was funny in this post?

And I look at you without humor and also touchy to everything 🤣

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Do you always ask such stupid questions???

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$HIVE at $6.70.

That's a huge wow!

This reminds me of someone last December who predicted that Hive will go up to $10.00 in the first month of this year. However, he did not mention anything about utility.

About delegating RC, I am glad to be successful at doing it. So far, I already delegated more than 500B RC to two accounts.

!PIZZA

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Hive has a unique quality in the crypto space: it is enjoyable by regular people.
Hive can capture people's time and brain with games, blogging and all sorts of rewarding interactions. This is new and will definitely have a heavy impact sooner or later.
I think that makes a huge difference with other blockchains that are targeted as either investors or the industry (I am thinking about IOT and such).
Blockchain V1: BTC and cryptocurrency only
V2: ETH and EVM adding smart contracts
V3: HIVE combining the others and including a social dimension to it

I am looking forward to see how it will evolve!

It's a possible way to get Hive up there but I wonder if smart contracts will ever be there at the base layer. It just seems like they are branching that out more toward the 2nd layer. Either way, it will still be built on Hive and it can all be interacted with using a Hive account and application.

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Having HIVE Power is the next Bitcoin

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Khal $10 Hive prediction and Taskmaster 6.7 prediction in the same week on a bear market. Hivers can you see the big picture??? Time to buy like a degen

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Not financial advice

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