Overview of Hedera Network Development in Q1 2025

Background: In the first quarter of 2025, the Hedera network demonstrated robust growth momentum despite the overall market downturn.
Main events:
- Market capitalization decreased by 32.9% quarter-over-quarter to 6.90 billion USD, but $HBAR maintained its 18th position in the cryptocurrency market capitalization rankings.
- Average daily transaction volume increased by 25.8% quarter-over-quarter to 708,500 transactions, primarily driven by a 103.6% growth in Hedera crypto service activities.
- Average daily decentralized exchange (DEX) trading volume remained at 10.80 million USD for the second consecutive quarter.
- Hedera stablecoin market capitalization nearly doubled to 72.60 million USD, mainly propelled by locally issued USDC.
- Total value locked (TVL) in decentralized finance (DeFi) declined by 41.7% to 97.10 million USD due to the drop in $HBAR price.
- Significant development milestones included upgrades HIP-755 and HIP-756, enhancing smart contract capabilities.
- Hedera joined the Linux Foundation’s open-source governance framework, advancing decentralization efforts.
- Karate Combat activities increased by 35% quarter-over-quarter, with 90% of KARATE token usage occurring on the Hedera network.
Potential impact: Hedera exhibited ecosystem resilience, network growth, and developer engagement amid market challenges, indicating promising development prospects.