How is HBD doing these days? The market sentiment has turned positive in the last few months, Bitcoin has increased in price dragging rest of the market to. What was the effect of this on the amount of HBD in savings?
The HBD interest rate was set to 20% by the top Hive witnesses back in April 2022. A year and a half have passed since then, in which HBD is paying out 20% interest on the HBD in savings.
The withdrawal from the savings account is three days. A reasonable period. It’s like staking with three days unlocking period.
When the interest on HBD was set for a first time by the witnesses, in March 2021, it started at 3%, then they push it to 10%, 12% and now a 20%! You can see what the interest rate is set by the witnesses here https://peakd.com/me/witnesses. There have been some talks about changing the interest rate for HBD and there are some witnesses changing it. Still the majority is for 20% with 12 out of the top 20 voting signaling 20% APR on HBD.
With the latest Hardfork the debt limit for HBD was pushed to 20%, allowing more HBD to be printed before the haircut rule is applied and HBD is devaluated.
Now let’s take a look at the data and see how much HBD has been transferred to savings and who is taking advantage of the HBD interest rate.
We will be looking at the following:
- HBD balance in savings
- HBD savings VS liquid balance
- Daily interest rewarded
- Monthly interest rewarded
- Cumulative interest
- Top accounts that hold HBD in savings
HBD Balance in Savings
Here is the chart for the HBD balance in savings in time.
There has been a strong growth in the amount of HBD in the savings up to recently when it started to slow down. In the last few months, the amount of HBD in savings has been constantly around 7.5M mark with small ups and downs. This aligns with the positive market sentiment and most likely users are not willing to keep stables that much in the recent period and are entering into the market.
When we zoom in 2023 we get this:
We can notice that the peak was reached back in August 2023, and since then the HBD balance in savings is almost constant.
At the moment there is 7.65M HBD in the savings out of the 11.1M circulating supply. The year started with 5M HBD in the savings and grew up to August when it plateaued out. Still a total of 2.65M were added to savings in 2023. Around the same amount was added in the previous two years as well, averaging a rough 2.5M per year in 2021, 2022 and 2023.
HBD Interest Rate [%]
Historically the interest rate for HBD has been as follows:
The dates with changes:
- Mar 2021 - 3%
- Jun 2021 - 7%
- Jul 2021 - 10%
- Dec 2021 - 12%
- Apr 2022 – 20%
We are now a full year with the 20% interest rate, and it is the longest period in the Hive history to hold this percent.
HBD Balance in Savings VS Liquid HBD
Here is the long-term chart.
This is a long-term chart, starting back from 2016 for context.
We can see that HBD in saving started to accumulate only after the introduction of interest in 2021. Since then, it has kept growing and we are now at ATH for HBD in savings, and at the same time the liquid HBD is at all time low.
For 2023 we get this:
We can see some ups and downs in the liquid HBD supply, while the HBD in savings keeps on growing. At the beginning of the year the total supply was at 9.5M HBD, out of which 5M were in savings and 4.5M liquid. Now the total supply is at 11.1M, out of which 7.65M is in savings. In the last months both, the HBD supply and HBD in savings has been surprisingly constant.
In terms of share of the liquid HBD we have this:
A constant downtrend here with some bumps on the way. We are now at 70% HBD in savings (staked), and only a 30% liquid supply.
At the beginning of 2023 this share was around 50%-50%.
As for the previous charts here as well, we can notice a flatting out in the share of HBD in the savings in the lasts months around the 30%.
Daily Interest Rewarded
How much interest is paid to the HBD in savings? Here is the chart.
At first in 2021 the interest was paid to all the accounts that hold HBD, without the need to be put in savings. Then after the HF in June 2021, HBD interest is paid only for HBD in savings. We can notice the sharp drop at that time.
Since then, the daily interest payouts depends on the amount of HBD in savings and the interest rate for HBD APR.
A constant growth here and we are now at 4.2k HBD daily earned from HBD interest.
The monthly chart for the HBD interest looks like this:
On a monthly level we are now more than 100k HBD interest per month since March 2023.
In the last months the monthly interest paid is around 130k HBD.
On a yearly level there was 137k HBD interest paid in 2021, a 616k HBD interest paid in 2022, and in 2023 the year will probably end somewhere around 1.5M HBD in interest paid.
Top Accounts that Hold HBD in Savings
Who has the most HBD put in savings? Here is the chart.
The @lazy-panda account is dominant on the chart with 1.2M HBD in savings. @newsflash is on the second spot with 500k, followed by @alpha.
Almost 8k accounts now have at least $1 HBD in savings.
The Hive debt currently looks like this:
An exact 6% at the moment 😊. It has been hovering around the 6% for a long period of time now.
Overall, the amount of HBD balance in savings seems to flatten out in the last few months around the 7.5M HBD. Both the HBD supply and the HBD balance in savings have been surprisingly constant in the last months. Users seem to want to enter the market and are not increasing their HBD holdings. This might change at some point in the future when more users would like to take profits and park some of it in the savings. Will see how it goes.
All the best
@dalz