Hedera earned a major institutional nod on Sept. 5 when Wyoming’s Stable Token Commission selected the network as the exclusive candidate to issue the state-backed Frontier Stable Token (FRNT). The endorsement highlights Hedera’s speed and reliability as a payments ledger. Still, markets reacted differently: HBAR staged an early uptick but collapsed in the final hour of trading as heavy sell pressure erased gains.
The token rose roughly 6% to about $0.22 during the session, only to reverse sharply as volumes surged to about 77.6 million tokens over 24 hours—roughly double the prior average. The move intensified between 13:26 and 14:25 UTC, when HBAR broke a key support at $0.22. A rapid two-minute spike to 6 million tokens indicated concentrated selling and triggered stop-losses and institutional liquidations.
On-chain and social metrics point to weakening demand: social dominance fell about 55% to 0.74%, and the Smart Money Index dropped to 1.108, signaling that professional traders have trimmed exposure. Retail interest has cooled too, leaving $0.19 as the next meaningful support level if selling continues.
Why this matters: the Wyoming selection is a clear vote of confidence in Hedera’s technology and an important step for institutional adoption of public ledgers. However, the immediate price action shows that regulatory or institutional endorsements do not always translate into instant market support—especially when liquidity, positioning and short-term sentiment are misaligned.
Where things could go from here:
- Bear case: sustained outflows push HBAR toward $0.19 and lower, prolonging the downtrend.
- Bull case: adoption news underpins a longer-term bid; renewed institutional purchases could restore $0.22 resistance into support.
Risk awareness: HBAR’s sharp intraday swings illustrate high short-term volatility. This analysis is informational and not investment advice—position sizing and risk management matter.
Source: CoinDesk. Read the original coverage for full details.