- Over 1.9 million HT was burnt recently by Huobi.
- Whales hold around 95% of the HT in circulation as price struggles.
Huobi has recently unveiled the burn rate for the second quarter of 2023. It offered insights into the volume of HT tokens destroyed as part of deflationary efforts. But how has the token itself performed amidst these measures?
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Huobi sees a substantial burn
Huobi made a significant announcement on 15 July, revealing the state of its revenue and the percentage allocated for burning. During the second quarter of 2023, the cryptocurrency exchange burned an impressive 1,950,555 HT. This burn accounted for 20% of Huobi’s revenues, indicating that its Q2 revenue amounted to approximately $26.91 million. Comparatively, the revenue for Q1 stood at $16.55 million.
With this recent burn, the cumulative total of HT burned by Huobi has reached a substantial figure of 298,940,224 HT as of 15 July, 2023. This move highlights the exchange’s dedication to reducing the circulating supply of HT and potentially boosting its value in the process.
The trend of Huobi’s HT
Although a portion of Huobi’s revenue was allocated to the HT burn, the price trend of the token on the daily timeframe chart appeared lackluster. The chart indicated a nearly flat trend, suggesting limited trading activity. As of this writing, HT was trading at around $2.76, reflecting a minor price increase of less than 1%.
Notably, the chart demonstrated that HT closely followed its short Moving Average (yellow line), which acted as immediate resistance. On the other hand, its long Moving Average served as a more substantial resistance in the $3.9 price range, indicating a long-term barrier.
Source: TradingView
The positioning of these Moving Averages also hinted at HT’s current poor price trend. Despite this, the token remained in a bull trend, albeit weak, as indicated by its Relative Strength Index.
Analyzing current volume and holdings
According to Coin Market Cap, the slight price bump resulted in a market cap increase of less than 1%. However, there was a noticeable decline in its trading volume over the past 24 hours, which had decreased by approximately 13%.
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Furthermore, an analysis of the token revealed that whales held a significant 95% of the total supply. Additionally, the percentage of long-term hodlers, as opposed to active traders and short-term holders, accounted for over 87% of HT holders.
These statistics suggest that a larger portion of the tokens is being held rather than actively traded, which could explain the low trading volume and the lackluster price trend.
