How Is Hive Performing?

In 2021, Hive performed miraculously. From the beginning to the end of the year, the price of Hive increased 15 times, and the number of monthly users rose 25 times. Of course, the bull market also contributed to these crazy statistics, but we should note that Hive outperformed the market. For example, the price of Ethereum has increased only five times, while the Hive price has increased 25 times. Behind this extraordinary Hive performance in 2021, applications that increased the demand for blockchain, especially Splinterlands, were effective.

Hive vs. Bitcoin vs. Ethereum

For 2022, the question was whether Hive could continue its success. The first eight months of the year were challenging financially, as the price declines that started in November 2021 continued in 2022. This challenge was not unique to Hive or the crypto market. Rising interest rates worldwide have caused the prices of risky assets to fall. The critical issue is how Hive performs against other cryptocurrencies because bear seasons end after 1-1.5 years.

Bitcoin and Ethereum have lost 56% and 58%, respectively, compared to the beginning of the year. On the other hand, Hive lost 64% compared to the end of last year. At first glance, Hive investors seem disadvantaged compared to Bitcoin and Ethereum investors. When we consider the returns of cryptocurrencies, we will see that this is not the case.

Hive Passive Income Alternatives

There are two ways to earn returns on Hive.

We can deposit our Hive coins into liquidity pools through DEFI applications such as Beeswap, Cubdefi, and Polycub. This alternative is not the focus of this article, as it requires converting half of the Hive we have into another cryptocurrency.

The second alternative is to delegate our Hive power. Many accounts distribute 100% of the curation income obtained in return for the delegation. Curation revenue is usually around 8%-9% annually. When we add the 2.83% annual increase in Hive power to this income, we reach a yearly return of 11%-12%.

When we delegate our Hive power to @leo-voter, our annual return is 16%. The difference with this alternative is that the payoff is in Leo instead of Hive. Payments are made automatically every day. Since Leo has high liquidity on Hive, Ethereum, BNB, and Polygon networks, getting Leo coins instead of Hive should not be a problem.

Those who delegated their Hive powers to @leo.voter, run by the @leofinance community, have earned 10% returns on their Hive powers since the start of the year. Moreover, the security risk is minimal since the delegation process takes place directly on the Hive blockchain.

Hive vs. Bitcoin vs. Ethereum (Including Returns)

It is not possible to get a significant return on Bitcoin. Bitcoin only gives its investors a dollar-denominated return when its value increases.

Ethereum, on the other hand, provides a 4% annual staking return. We can achieve this payoff by delegating to an ETH 2.0 validator or making liquid staking on Lido. This means that ETH holders have earned 2.7% staking returns in the first eight months.

We see that Hive, Bitcoin, and Ethereum investors, which we have included in the above figures, have lost 54%, 56%, and 55%, respectively, since the beginning of the year. In fact, there is no notable difference.

On the other hand, since Hive has a relatively small market cap, it will outperform Bitcoin and Ethereum in a potential bull market.

Towards 2022 and Beyond

We've seen Hive show similar price performance to Bitcoin and Ethereum from year to date. When blockchains like Avalanche and Solana are losing 80% of their value, it is noteworthy that Hive has been able to resist price drops to some extent. I believe that the community spirit and the ongoing developments on the Hive were influential in forming the said result.

We expect many essential developments to occur on the Hive towards the end of 2022.

I expect important announcements to be made at Hivefest, which will take place in Amsterdam between 15-18 September, because the statements made during events in the crypto world in recent years have become a tradition.

We do not know when Hardfork 26, which will provide significant improvements in the Hive infrastructure, will take place, but we know that the works are nearing the end. In addition to new hard fork performance improvements, it includes changes on Hive that will enable easy application development.

We expect the @ragnarok and @psyberx games to be launched towards the end of this year. It wouldn't be surprising if, after the release of the first versions, a large community of people played improved versions of these games in the first quarter of next year.

At the end of the year, the SPK Network, which is still under development, is expected to be activated. For those who don't know, the SPK Network is a decentralized solution that incorporates video content, storage, and delivery into the Hive blockchain ecosystem.

On the Splinterlands front, it is planned to continue the work on the governance structure based on SPS and land infrastructure. In the meantime, I would like to point out that the Riftwatchers card collection will be published soon.

On the @leofinance front, the new DEFI application, which is expected to operate on the Avalanche network, may be activated in the coming months. On the other hand, the use of the Threads application, the Web 3.0 version of Twitter, will become widespread in the coming period.

I would also like to state that the improvements in Ecency and Peakd frontends continue. On the other hand, the work done to connect Hive to the BTC Lighting Network via V4Vapp has already yielded its first fruits. Thanks to this application, Hive will gain essential competencies in the payment field.

Conclusion

The abovementioned improvements will enable Hive to become even more assertive in 2023. Because over the years, the number of applications on Hive has been increasing, and their qualities are improving. If market conditions help, it would not be surprising to experience a new price rally in Hive in the last quarter of the year or the first quarter of 2023. This is not investment advice, and I am not an investment adviser.

Thank you for reading.

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