Currently, large entities dominate the issuing of top-level domains (TLDs). In simple terms, a TDL is everything that follows the final dot of a domain name in the domain name system (DNS) hierarchy. These organisations control which TLDs are awarded and to whom. They could demand high fees for their services, making them unaffordable for the majority.
Handshake, a blockchain-based protocol, replaces centralised corporations with an open, permissionless network. Thus, rather than paying service charges and spending large sums of money to acquire the right to operate a certain TLD such as .net, anybody can bid for a TLD to own it.
HNS token last made a high in May 2021 and reached $0.852 on 5 May 2021, according to CoinMarketCap. At the time of writing (16 February), the HNS token was trading at $0.226, down nearly 73% from the peak.
Can the HNS token price rebound and test new highs in 2022? Let’s take a look at the project’s fundamentals and development to get a clearer view of a handshake coin price prediction.
What is a handshake coin and how does it work?
Handshake is a blockchain protocol that facilitates TLD registration, renewal and transfer in the domain name system (DNS).
Today, web services are delivered by trusted third parties, hampering the web from becoming decentralised. Handshake’s goal is to establish a decentralised network that results in worldwide domain name allocation in a decentralised and cost-effective manner.
Handshake enables experimentation with decentralised web services by providing key management and server/service authentication services. It runs on its own blockchain and follows a Proof-of-Work (PoW) consensus algorithm, an energy-intensive process. In addition, it sets an ordering of name registrations so that the user is aware when a name has already been registered.
Handshake mandates everybody to adhere to the same standards to establish an agreement on name ownership instantly. When a name is registered, the owner obtains their own cryptographic key, representing ownership and enabling them to create records on Handshake to identify, authorise, and find resources associated with their name.
Users can purchase or register domains using HNS coins through a Vickrey auction. Although the highest bidder wins the auction, the amount paid is the second-highest bid. Losing bidders get their full lockup amount back. If there is only one bid for a TLD name, the bidder mints it for free.
HNS coins equal to the winning bid amount are burnt and irreversibly taken out of circulation, supporting a deflationary effect for the handshake crypto price.
Handshake crypto news and price drivers
The project has undergone a number of significant milestones and developments lately, which may drive the handshake coin value.
Launch of Namebase
In May 2020, Handshake launched Namebase, a secure and easy platform where users can buy, sell and manage TLDs.
It’s a secondary marketplace, where users gain the opportunity to offer the names they own for buyers to bid on them. It’s the official marketplace of Handshake, where buyers and sellers bid and acquire TLDs for various services.
Launch of wrapped HNS coin
Handshake operates on its own blockchain. Earlier users could only purchase coins via the Handshake platform and a few other exchanges.
Handshake introduced the wrapped handshake (WHNS) coin, an ERC-20 token, in June 2021 to increase the network’s liquidity and DeFi capabilities.
HNS holders acquired access to the rest of the DeFi ecosystem on Ethereum with the release of WHNS. WHNS enabled token holders to lend their HNS and earn interest on their loans using decentralised lending platforms such as Aave and Compound.
ANNOUNCEMENT: Wrapped Handshake (WHNS) is now live!
Contract address: 0xa771b49064da011df051052848477f18dba1d2ac
Expect more smart contracts for Handshake, and more exchanges listing WHNS.https://t.co/958V56hUlU
— Namebase/ (@NamebaseHQ) June 16, 2021
Partnership with Arweave Network
Handshake collaborated with ArGo, a deployment service platform on top of the Arweave network, in July 2021 to develop a fully decentralised application (dApp), with Arweave providing the required technical stack.
Arweave is a distributed, transnational storage system based on the blockchain. Arweave files are censorship-resistant, need little maintenance, and are maintained for years for a one-time cost.
Developers can construct decentralised websites using a Handshake domain to connect to data and information held on the Arweave blockchain.
Launch of social network Namer News
Handshake announced Namer News, a social network optimised for Web 3.0, in March 2021. Namer News is a discussion forum for Handshake and the decentralised web, enabling users to log in using their Handshake username.
Namer News was founded due to the absence of decentralised web (dWeb) technologies on current social networks. It demonstrates the breadth of Handshake’s possible use beyond strictly DNS-based applications.
HNS/USD price analysis
HNS coin has yielded a ROI of 119.96% since its inception, according to CoinMarketCap (as of 16 February).
Based on the earliest available price data from 2020, the HNS coin spiked from $0.08 on 2 February to $0.41 on 5 March, a surge of 412% in less than one month. The retracement sent the price lower to $0.11 on 15 April and then it bottomed to the all-time low of $0.07 on 28 June.
A bull rally started in late June, and the HNS coin spiked to $0.24 on 17 August before collapsing again to $0.08 on 27 October, a decline of 65% from the August high. It closed the year at $0.09.
At the onset of 2021, the market climate for the HNS coin was bullish and it reached $0.37 on 21 February and then reached its all-time high of $0.85 on 5 May. However, the rally didn’t sustain, and the HNS coin declined to $0.27 on 22 May and bottomed to $0.14 on 20 July. HNS coin further turned bullish and reached $0.49 on 8 November. However, it closed the year nearly 43% lower at $0.28.
During the onset of 2022, the HNS price action was bearish and the coin slipped to a 90-day low of $0.185 on 24 January. At the time of writing (16 February), HNS was trading at $0.226, more than 73% below its peak, with a market capitalisation of $105m.
Handshake (HNS) price prediction: Targets for 2022, 2025 and 2030
According to CoinCodex’s technical analysis, short-term sentiment for the coin was bearish, with 22 indicators showing bearish signals and four bullish as of 16 February 2022.
The 50- to 200 day simple moving averages (SMA) and exponential moving averages (EMA) gave ‘sell’ signals, together with the volume-weighted moving averages (VWMA) and the Hull Moving Average (HMA). The 21-day SMA and EMA, and the 100-week SMA indicated ‘buy’.
Meanwhile, the moving average convergence divergence (MACD), Williams percentage range, stochastic RSI (Stoch RSI), and the relative strength index (RSI) were neutral.
The handshake coin price prediction from CoinCodex suggested the price could rise by 34.40% to reach $ 0.308 by 21 February 2022.
Speculating on the future handshake crypto price, algorithm-based forecasters shared moderately bullish long-term projections, as of 16 February:
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According to Wallet Investor’s HNS/USD forecast, the coin’s average price could increase to $0.326 by the end of 2022 and to $0.658 by 2025. The five-year estimate for HNS/USD indicated that it could reach $0.778 in February 2027.
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HNS price prediction from Digital Coin suggested the average price in 2022 could be $0.32, moving up to $0.37 in 2023, $0.54 in 2025 and $1.09 in 2030.
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Handshake future price prediction from Price Prediction expected the average price to reach $0.31 in 2022, $0.88 in 2025 and $6.01 in 2030. The 10-year HNS/USD forecast indicated that it could rise to $9.07 in 2031.
When looking for HNS price predictions, bear in mind that analysts’ and algorithm-based targets can be wrong. These projections are based on fundamental and technical studies of the HNS token’s past performance. Past performance is no guarantee of future results.
It’s essential to do your research and remember that a decision to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money. You should never invest money that you cannot afford to lose.
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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
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