Deep Dive
1. Network Upgrades: Secret Leader Rotation & Stream Sync (Bullish)
Overview:
Harmony’s ongoing protocol enhancements aim to resolve historical vulnerabilities. The June 2023 proposal for Secret Leader Rotation targets DoS attack risks by randomizing validator selection. October 2025’s Stream Sync upgrade improved node synchronization speed by 40%, per Harmony’s X update.
What this means:
These upgrades could restore developer/validator confidence post-2022 bridge hack, potentially increasing network usage. However, adoption remains gradual – only 66% of nodes upgraded as of June 2025.
2. Liquidity Risks from Delistings (Bearish)
Overview:
EXMO delisted ONE/USDT and ONE/BTC pairs in September 2025, citing “performance reviews.” This follows Binance’s 2024 suspension of ONE staking. Current trading relies heavily on Huobi Global and decentralized exchanges.
What this means:
Reduced exchange access typically correlates with lower liquidity and higher volatility. ONE’s 24h volume ($6.17M) already trails major Layer 1s like Solana ($2.1B), making price discovery fragile.
3. Regulatory Overhang (Mixed Impact)
Overview:
A November 2025 Bybit report identified Harmony as having “configuration-based freezing” – validators can theoretically censor transactions. This conflicts with crypto’s decentralization ethos.
What this means:
While no active enforcement exists, this feature could deter privacy-focused projects. Conversely, it positions ONE as “regulator-friendly” if compliance demands escalate.
Conclusion
Harmony’s trajectory hinges on executing technical upgrades to regain trust, offset by persistent liquidity and regulatory challenges. The 86% price drop since 2024 suggests deep skepticism, but RSI 19.91 hints at possible oversold conditions.
Key question: Can Harmony’s Q4 2025 mainnet upgrades catalyze developer activity while navigating increasing Layer 2 competition? Monitor validator participation rates and exchange volume trends.