One of the most significant effects of hard forks on cryptocurrencies is the effect on their monetary value. Depending on the outcome of a hard fork, the price of a cryptocurrency may rise or fall.

When a cryptocurrency successfully adds new features to its protocol via a hard fork, the price may rise as investors flock to the platform and users want to hold. It demonstrates that the community is committed to the project's long-term success. A crypto network that hard forks to add features like DeFi or NFTs, for example, may see an increase in the network activity, which may result in a price increase.

A hard fork, on the other hand, may not always be well received by the market because malicious actors may use it to conduct "pump and dump" scams. As a result, investors are sometimes skeptical of it and may opt to avoid it or sell their coins if they have already invested in the project.

In conclusion, hard forks can cause price increases when users believe the project will deliver and developers deliver as promised. When the market is skeptical about the fork and the reasons for it, it can cause a price crash.

A hard fork in a cryptocurrency occurs when a blockchain undergoes a permanent split due to a significant change in protocol, resulting in two separate and incompatible versions. Whether a hard fork increases price depends on various factors. It may initially create uncertainty and volatility in the market as investors assess the implications of the split. However, if the changes introduced are perceived positively by the community and lead to improved functionality, security, or scalability, it could ultimately bolster confidence and drive prices higher. Conversely, contentious hard forks or ones with unclear objectives may lead to price declines due to investor skepticism and fragmentation.