Holo (CCC:HOT-USD) has performed well this year, despite a significant drop from the April 4 high of 2.848 cents. On June 3, it was 0.8854 cents. This means Holo is down 68.9% from its peak. Some believe Holo will rise to its old high this year, but I am skeptical.
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According to Coinmarketcap.com, the price of the cryptocurrency last year was 0.06403 cents. In June, it was 0.8854 cents per HOT token. This means that its price is currently 13.8 times its price at the end of 2020, which is 1283% more than at the beginning of the year.
So we have a crypto asset that has proven its ability to grow significantly since the beginning of the year. But it is well below the peak price, which means that the rebound can be profitable. For example, if Crypto Holo returns to its peak of 2,848 cents, it could see a potential gain of 222%.
However, Holo’s market cap still stands at $ 1.574 billion. It is 63rd in the Coinmarketcap universe of cryptocurrencies. At 0.8854 cents yesterday, HOT is more than 59 times the original coin supply of 0.015 cents in 2018, when Holo raised $ 20.65 million.
Holo is not among the top ten cryptocurrencies, but that is also non-trivial. Let’s take a closer look at his worldview.
Outstanding features of Holo
Holo is Ethereum (CCC:ETH-USD) based on the blockchain protocol, which is a distributed peer-to-peer hosting platform for Holochain applications (hApps). These applications can be downloaded to personal computers to receive HOT tokens.
Holochain places great value on user autonomy, integrated directly into its architecture and protocols. This is the key to his assertion of the “distributed” network as a data platform.
Holochain is a simple platform for building apps. Here’s what the company said on Medium in 2019:
“… Much of what people do online today can be built on Holochain. It’s fast and scalable enough to run Facebook, Twitter, LinkedIn, Wikipedia, Reddit, etc. However, for these types of apps to be useful, they need to be available to everyone, not just users using the Holochain software. This is where the Holo hosting system comes in.
In other words, the Holochain platform is easy to develop with hApps similar to existing internet applications. Obviously, the main difference is that these are “distributed” applications that are controlled not by a specific company, but by the users and developers of hApps.
Holo plans to disrupt the cryptographic application space. The company claims that its peer-to-peer blockchain distribution can avoid the scalability issues faced by existing platforms. By distributing blockchain ledgers to many different people, Holo can avoid congestion in both processing and storing blockchains.
As Koingeko points out, each device on the network can operate independently. Data synchronization is only required when it is required or approved by users.
What to do with Holo Crypto
Let’s be practical. It seems that there are not many Holochain apps. Github lists some of them. The most recent, it seems, was Holochat.
Also, the number of Holo addresses is small. As of May 3, there were only 1,876 active Holo addresses, according to Glassnode.com. This is nothing compared to the 671,710 addresses that Ethereum had on the same day. In other words, Ethereum has 358 times as many Holochain addresses.
On the other hand, consider that Ethereum has a market value of $ 315.5 billion. This is 200 times the $ 1.57 billion Holochain market cap. But given the 358x difference in addresses, one would expect the market cap to be about the same. This could mean that Holo is a little overrated right now.
This is a static view of the differential. If Holo’s address generation speed is faster than Ethereum, then the price difference can be explained. At the moment, I cannot determine the exact speed, but I suspect that Ethereum is much higher than Holochain.
So at the moment I think Holo cryptocurrency is very much appreciated. Watch carefully for the difference in addressing speed. If hApp takes off and the rate is high, we will be able to invest in cryptocurrency by the end of the year.
Mark R. Hayk is long in Ethereum (ETH-USD) as of the date of publication. The opinions expressed in this article are those of the author in accordance with InvestorPlace.com’s publishing guidelines.
Mark Hayk writes about personal finance at mrhake.medium.com and run Total Cost of Income Guide which you can consult here.