The key is still liquidity. We do not have a lot of HBD available.
Without getting a lot more in circulation, this is going to continue to be a problem. We have the problem of use cases but it is going to be an issue until we get more out there.
Perhaps after the Hard Fork with the haircut being raised, we will see some changes.
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With a pegged asset there is no point in having more supply than there is demand to match the $1 price point, or they would simply get converted back to Hive anyway.
The mechanisms we have allow for dynamic expansion of supply, so in truth if we need more supply then what we need is more demand. That would mean either giving people more reasons to hold it, or making people more aware of the benefits of holding it.
That is true that supple will equal demand and that we need more reason to hold/utilize it.
Of course, the problem is we do not truly have a pegged asset since the range is still too large. Therefore, I believe we need more HBD to tighten the trading range. A lack of liquidity always creates volatility, not what we want in a stable coin.
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Putting more supply in circulation will not automatically provide liquidity. Likely just destablise the price unless the demand for hbd also grows. We need a two pronged approach.
Certainly their needs to be an increase in demand. However, while there is a lack of liquidity, the likelihood of exchanges picking it up are very low. This is a problem since we know most still go through those.
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