HNT price hit a 3-month high after the network’s active nodes surpassed 100,000 and the project raised $111 million through a token sale.
Among the more than 11,000 listed cryptocurrencies exist a few projects that offer a revolutionary use case capable of improving the way society operates through the integration of blockchain technology.
One such project is Helium (HNT), a decentralized peer-to-peer 5G wireless network that made headlines on Aug. 10 thanks to the successful completion of a token sale that raised $111 million from multiple investors, including Andreessen Horowitz.
Data from Cointelegraph Markets Pro and TradingView shows that HNT price spiked 30% from a low of $14.03 to an intraday high at $18.14 following the fundraise announcement.
Three reasons behind the growing strength of the Helium network include a continually expanding ecosystem of nodes that provide coverage for the network, new companies and partners that utilize the Helium network to track and store data and the recent issuance halving that the protocol underwent.
The "People's network" hits 100,000 nodes
One of the biggest factors boosting the legitimacy of the Helium network is its expanding network of nodes that surpassed 100,000 in July.
There are now 1⃣0⃣3⃣K Hotspots connected to @Helium's Network to mine $HNT and provide #LoRaWAN coverage for #IoT devices around the world. pic.twitter.com/oybU6crpK0
— Helium Hotspots (@HeliumHotspots) July 30, 2021
Increasing demand for hotspots has resulted in more than 50 hotspot manufacturer applications being submitted through the Helium Improvement Proposal (HIP) 19 process and this signals that the number of hotspots could continue to rise for the foreseeable future.
The network's growth is further bolstered by the introduction of a new types of hotsposts which include a ‘Light’ hotspot and data-only hotspot.
As of August 10, there are 117,377 nodes operating on the Helium network with the highest concentrations found in the United States, Europe and China.
New data partners join the network
Another bullish factor behind HNT's recent move is the expanding list of data partners using the low-cost network.
The latest company to join the Helium network for its data management needs is Invoxia, a company that develops GPS trackers for individuals and businesses.
“@Helium is honored to welcome @Invoxia to its open-source ecosystem in order to protect valuables and loved ones,” said @fmong. From GPS tracking to location history, anti-theft alerts, & more, learn about the Invoxia LongFi Tacker from @iotbusinessnews: https://t.co/TghRXrqInw.
— Helium (@helium) August 4, 2021
Some of the other companies that utilize the Helium network to track all manner of data from agricultural information to temperature readings include Salesforce, Conserv, Smart Mimic and myDevices.
As the number of operational nodes expands to offer wider network coverage for low-cost data tracking, it’s likely that more companies will use the network.
Related: Cryptocurrency mining under proposed US policy changes
Multiple factors reduce HNT's circulating supply
A third development that has put positive pressure on HNT price is the recent halving that cut the monthly issuance of HNT from 5 million to 2.5 million.
The first $HNT Halving has arrived! The @Helium Blockchain has a 2-year token halving schedule based on community-approved Helium Improvement Proposal (HIP) 20. As of today, the target goal for the issuance of $HNT has been reduced from 5M $HNT to 2.5M $HNT per month. pic.twitter.com/YdUGhvwBgH
— Helium (@helium) August 1, 2021
Halving the amount of HNT issued per day comes at the same time that the network is adding partners and expands its coverage. This has the potential effect of increasing demand and leading to further price growth as network activity increases.
The introduction of staking validators on July 23 is another protocol development that has led to positive price pressure on HNT.
At the time of writing, more than 21.32 million HNT — 23% of the total supply — have been removed from circulation and staked on the network.
The recent fundraising round from venture capital giants like Andreessen Horowitz, Multicoin Capital and Alameda Research, is further proof that Helium is a fundamentally strong project that has real-world applications and the potential to see further growth in the short and long-term.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments