Looking at Hedera: Is the Blockchain Still Making Money?

Hedera blockchain revenue remains one of the least discussed metrics in the HBAR investment conversation. 

Most analysis focuses on ETF flows, Governing Council announcements, and price predictions, but the fundamental question is simpler. Is the network still generating economic activity? For patient investors, current data may represent an opportunity.

Key Takeaways

• Hedera's network activity has remained stable over the past year but has not shown meaningful growth in active accounts or transaction volume.
• The P/F ratio (circulating) has declined to 7,848.1x and the P/S ratio (fully diluted) to 8,960.9x, both trending downward from peaks above 20,000x.
• Declining valuation ratios suggest HBAR may be undervalued relative to the fees and revenue the network generates.

Looking at Hedera's Network Activity

The Grafana Network Activity Overview chart provides a comprehensive view of Hedera's operational health over the past year. 

Five metrics are tracked simultaneously: network fees, active accounts, fees per active account, active contracts, and new transactions, all overlaid against HBAR's price in USD.

The picture is one of stability without growth. Active accounts peaked early in the chart's timeframe around the 15,000 to 17,500 range, coinciding with HBAR trading above $0.20. 

As the price declined through mid 2025 and into 2026, active accounts settled into a range of roughly 2,500 to 5,000, with occasional spikes but no sustained recovery toward earlier highs. 

New transactions follow a similar pattern, with baseline activity sitting well below the peaks recorded during Hedera's higher price periods, punctuated by intermittent spikes that suggest bursts of usage rather than organic growth.

Image Source: Grafana

Here is what the activity data reveals:

• Active accounts have stabilised between 2,500 and 5,000 over recent months without trending higher.
• New transactions show periodic spikes, but the baseline volume has not expanded meaningfully.
• Active contracts remain relatively flat, indicating the smart contract ecosystem is maintaining but not accelerating.
• Network fees remain low in absolute terms, tracking closely with the subdued activity levels.

The interpretation requires nuance. A stagnant network is not a dead network. Hedera continues to process transactions, maintain active contracts, and generate fees daily. 

The 164 million transactions per day figure reported during peak months in early 2026 confirms that the infrastructure handles significant throughput. The issue is that the activity is not growing. 

The ecosystem is sustaining itself at a lower baseline established after the price correction, which means the network is functional and active but has not yet attracted the next wave of users or applications that would push metrics higher.

Bitrue Research Institute notes that this stagnation creates a specific investment dynamic. The network is not failing, so there is no fundamental reason to expect collapse. 

But it is also not expanding, so there is no fundamental catalyst for a near-term price recovery from network usage alone. 

The catalyst, if it comes, will likely arrive from outside the current user base, through institutional adoption translating into actual on-chain activity, new DeFi protocols launching, or enterprise deployments moving from pilot to production.

Read also: Can HBAR Reach $1 in 2026?

What Do Hedera's Valuation Ratios Tell Us about HBAR's Current Price?

Token Terminal's valuation data introduces a dimension that most HBAR analysis overlooks entirely. 

The platform tracks two key ratios for Hedera, which are P/F (price to fees, or market capitalisation divided by annualised fees) and P/S (price to sales, or market capitalisation divided by annualised revenue). Both are available in circulating and fully diluted versions.

Image Source: Token Terminal

Here is where the ratios currently stand:

• P/F ratio (circulating) sits at 7,848.1x.
• P/F ratio (fully diluted) sits at 8,960.9x.
• P/S ratio (circulating) sits at 7,848.1x.
• P/S ratio (fully diluted) sits at 8,960.9x.

These numbers are high in absolute terms, but the trend is the important signal. All four charts show the same pattern. The ratios were near zero through most of 2023 when HBAR's market cap was minimal. 

They spiked dramatically above 20,000x in late 2024 and early 2025 as the token price surged ahead of fee and revenue growth during the broader crypto rally. Since that peak, the ratios have been declining steadily through 2025 and into 2026.

This decline means one of two things is happening, or both. Either HBAR's market capitalisation is falling faster than fees and revenue are declining, or fees and revenue are holding relatively stable while the market cap compresses. 

Given that the Grafana data confirms network activity is stable but stagnant rather than collapsing, the second interpretation is more accurate. 

The network continues to generate roughly the same level of fees and revenue, but the market is pricing HBAR lower.

In traditional finance, a declining P/E or P/S ratio for a company with stable earnings is generally interpreted as the stock becoming cheaper relative to its fundamentals. The same logic applies here. 

Bitrue Research Institute observes that HBAR at a P/F of 7,848x is meaningfully cheaper than HBAR at a P/F of 20,000x, even though the underlying network activity has not deteriorated. 

For investors who believe that Hedera's institutional pipeline will eventually translate into higher on-chain usage, the current valuation compression represents a more favourable entry point than any time since the ratio peaked.

Read also: Hedera Ecosystem Tokens and dApp Update 2026

What Strategies Can HBAR Holders Consider during This Period?

The combination of stable network activity and declining valuation ratios creates an environment where passive positioning may be more productive than active trading. Bitrue Research Institute outlines three approaches.

• Staking HBAR to earn yield while waiting for bullish momentum allows holders to accumulate rewards during the consolidation phase, with 63% of circulating supply already staked at approximately 6.5% annual yield.
• Short-term spot trading can capture profit from the periodic volatility spikes visible in the Grafana data, as bursts of network activity and ETF inflow days tend to create brief price fluctuations within the current range.
• Deploying HBAR across multiple DeFi and CeFi platforms to access diversified yield sources spreads risk while generating returns from lending, liquidity provision, and structured earn products.

The common thread across all three strategies is that HBAR holders do not need to sit idle during a period of price stagnation. 

The network is still producing fees, the valuation is compressing in their favour, and yield opportunities exist to grow positions while waiting for the catalyst that breaks the current equilibrium.

For traders looking to stake, trade, or earn yield on HBAR and other digital assets, Bitrue offers a comprehensive range of spot trading and earn products. Sign up to Bitrue to get started.

Conclusion

Hedera's blockchain is still making money, but it is not making more money than it was six months ago. 

Network activity has stabilised at a lower baseline, with active accounts, transactions, and contract interactions all holding steady without trending higher. 

The more compelling story sits in the valuation data, where P/F and P/S ratios have declined from peaks above 20,000x to approximately 7,848x and 8,960x, respectively. That compression signals that HBAR is becoming cheaper relative to the fees and revenue the network produces. 

For investors willing to stake, trade short-term fluctuations, or deploy across DeFi and CeFi yield sources, the current period offers an opportunity to accumulate and earn while waiting for the next wave of institutional adoption to translate into measurable on-chain growth.

FAQ

Is Hedera Still Generating Network Fees?

Yes. Grafana data confirms that Hedera continues to process transactions and generate fees daily. Activity has stabilised at a lower baseline compared to peak periods but has not collapsed or shown signs of network deterioration.

What Does a Declining P/F Ratio Mean for HBAR?

A declining P/F ratio means HBAR's market capitalisation is compressing relative to the fees the network generates. In practical terms, this suggests the token is becoming cheaper relative to its fundamentals, which Bitrue Research Institute interprets as a potential undervaluation signal.

Can HBAR Holders Earn Yield during Price Stagnation?

Yes. Approximately 63% of the circulating HBAR supply is currently staked at roughly 6.5% annual yield. Additional yield opportunities exist through DeFi lending, liquidity provision, and CeFi earn products on platforms such as Bitrue.

What Would Change Hedera's Stagnant Activity Trend?

The most likely catalysts are institutional deployments moving from pilot to production, new DeFi protocol launches on the network, approval of additional HBAR ETFs, and broader crypto market recovery driving new users to the ecosystem.

Disclaimer: 

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are highly volatile and carry significant risk, including the potential loss of principal. Always conduct your own research before making investment decisions. Certain products and services referenced may not be available to residents of restricted jurisdictions, including but not limited to the United States, Canada, the United Kingdom, the European Economic Area, and China.