Is Harmony (ONE) a Good Investment?

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Contributor, Benzinga
March 7, 2022

Decided Harmony (ONE) is a good investment? You can get ONE on Pionex today.

Some of the early cryptocurrencies, including Bitcoin, were created with the intention of replacing the U.S. dollar and other traditional currencies, known as fiat currencies. Institutions and governments were expected to have no control over the emerging technology and financial infrastructure. It's proven tough for blockchain networks to preserve basic characteristics like security and decentralization while expanding and handling all of the transaction volumes that a traditional financial network can manage on a day-to-day basis.

The Harmony Network thinks it can expand and scale while retaining decentralization and security because it uses sharding. Its use case – improving interoperability – means the ability to communicate between multiple blockchains. 

From an investing perspective, the space offers ample opportunity because protocols that can implement seamless and secure interoperability will see massive public adoption.

Disclosure: eToro supports the following currencies: BTC, ADA, DASH, DOGE, EOS, ETH, LTC, NEO, XLM, XTZ, TRX, ZEC. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. T&Cs apply. *The bonus is available to Benzinga readers in the US for open states only. Served by eToro USA LLC.

What is Harmony (ONE)?

The Harmony Network harnesses blockchain technology to be a secure and efficient protocol in the cryptocurrency space with its ONE token. Harmony is predicated on helping achieve both decentralization and scalability through its innovative sharding technology that divides validators into many groups and lets them approve transactions and new blocks at the same time. Trying to achieve decentralization and scalability, however, is not a novel idea. 

Ethereum is a Layer 1 blockchain, meaning it is able to be built upon by other Layer 2 blockchains. Currently, gas fees – the fees you incur while transacting on the blockchain – are quite steep. This barrier to scalability discourages users from transacting. As a Layer 2 blockchain, Harmony tries to bridge the gap by encouraging users to transact with the cheap fees and quick transaction times ensured by its clever token economics, or tokenomics, for the ONE token. 

Although some cryptocurrencies will eventually be deflationary tokens – supply decreases as time increases – the ONE token is an inflationary token, chronicled as such in its whitepaper, that alludes to the fact that assets with limited and diminishing supplies are often held onto whereas assets that increase in supply over time see higher numbers of transactions.

Harmony (ONE) Price History

In early March 2022, the price of ONE is just under $0.13; at its all-time high, the token reached $0.38 in October 2021.

The total quantity of Harmony (ONE) tokens is 13.3 billion. The market's circulation supply is around 9.5 billion ONE as of March 2022 with no maximum supply.

According to Coinmarketcap, the original seed sale accounted for 22.4% of the total quantity of ONE tokens. A further 12.5% was put aside for a Launchpad sale with 16.9% of the entire supply going to the Harmony founding team and developers. A total of 26.4% of ONE tokens was allocated to protocol development, with the remaining 21.8% going to ecosystem development.

Harmony (ONE) Competition

All Harmony competitors are Layer 2 blockchains set to accomplish scaling solutions. Ethereum, however, suffers from its high gas fees, allowing other Layer 1 blockchains like Solana and Fantom to catch up. However, Layer 2 blockchains are more direct competitors. 

Arbitrum is a direct competitor that harnesses optimistic rollups pioneered by Optimism, an additional competitor to Harmony. Both competitors have a longer finality or immutability – the guarantee a transaction cannot be reversed – whereas Harmony network achieves finality in about two seconds. Some may argue that as long as a solution has decently fast finality, an additional second or two is nominal. Furthermore, both competitors have higher transaction costs that still deter smaller purchases on the Ethereum blockchain. 

It’s fair to say the Harmony network is one of the most innovative and prevailing solutions to the scaling problem Ethereum faces. 

How to Buy Harmony (ONE)

You can purchase ONE on Crypto.com and Pionex. Individuals interested in purchasing cryptocurrencies might consider using a centralized exchange such as Crypto.com, although decentralized alternatives exist that have benefits but require paying gas fees. Conduct your own assessment before purchasing cryptocurrencies, as these are highly unpredictable investments.

Benzinga offers additional resources if you are having trouble buying Harmony ONE

Best Hardware Wallet For Harmony (ONE)

If you’d like to store your ONE tokens in anticipation of potential tremendous growth, you’ll need a safe place to keep your investment.

Ledger Hardware Wallet

Ledger is the most well-known and well-respected hardware wallet on the market today. The product is basically a hardware wallet that may be used offline. Whether you use your PC or a smartphone, Ledger connects through Bluetooth and USB. It's also a lot better to protect, manage and organize your assets with Ledger's app.

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If Ethereum quickly and seamlessly launches ETH 2.0 – the merge – to eliminate gas fees, other well-constructed Layer 2 protocols on Ethereum, including ONE, would likely increase.

Cryptocurrency Market Outlook

On the topic of volatility, Russia attempting to invade Ukraine has sent shockwaves through the riskier asset classes, shifting money to safer alternatives. Alternatively, post-war markets are optimistic and generally carry a positive momentum. 

In other words, although crypto has dropped in the beginning of 2022, growth in the sector is expected over the long term. 

Is Harmony (ONE) a Good Investment?

Despite its involvement in decentralized finance and the non-fungible (NFT) market, ONE faces stiff direct Layer 2 competition from Cardano, Avalanche and Solana. 

However, your risk tolerance will determine whether the ONE coin has potential for your investment portfolio. Although ONE has room to grow, the market volatility in general and competition can be a strong deterrent. Don’t put money that you can't afford to lose into an investment.

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About Jack Fineman

Jack Fineman is an undergraduate student studying economics at UCSB, President of the Blockchain at UCSB club and starting player for UCSB in the Collegiate Chess League. Jack primarily works on project creation and managerial work for his club and produces Web3 content for Benzinga. Jack is highly passionate about DeFi and blockchain technology, one of his favorite projects is The Helium Network.