Helium (HNT) Sees Growing Adoption and Outperforms DePin Industry

Helium’s HNT token has demonstrated remarkable growth despite a broader decline in the Decentralized Physical Infrastructure Network (DePin) market. Data from CoinGecko reveals that in the past 24 hours, the DePin sector experienced a 6.5% decrease in market capitalization, bringing it down to around $22.7 billion.

In contrast, Helium’s HNT has surged by an impressive 36.9% over the past week. The network’s road to glory was a difficult one, but the rise in value suggests that the use cases of Helium make sense and will only continue to expand. As the DePin market faces a significant decline, Helium continues to capture attention with its innovative approach to the Internet of Things (IoT) and its unique incentive model for network participants. This article delves into the recent performance of HNT, exploring the factors driving its surge and the potential implications for its future trajectory.

Helium Price Enters Overbought Zone

Helium, a decentralized blockchain designed for the Internet of Things (IoT), utilizes a network of hotspots that act as wireless gateways. These hotspots enable communication and data exchange among IoT devices.

Every hotspot is a validator node within the Helium ecosystem, where owners are rewarded with HNT tokens for providing network coverage and verifying connectivity. This is doen by running powerful WIFI routers that enable users to connect to the network across the globe.

The network has recently reached a significant milestone by surpassing 100,000 mobile subscribers. According to the latest data from a Dune dashboard, the total number of subscribers now stands at 103,081. Additonally, there has been an 8% increase in monthly subscribers, tracked through non-fungible tokens (NFTs), over the last month.

Although HNT prices have risen by 75% in just 15 days, there are signs of potential slowdowns. Helium is currently trading at around $5.230 HNT/USDT on Gate.io. Moreover, the Relative Strength Index (RSI) has hit 77, indicating an overbought condition, which might lead to a temporary pullback as selling pressure increases.

However, if the current momentum continues, HNT prices could stabilize between $4.926 and $5.230, allowing the RSI to cool down before the price resumes its upward trend.

Amir Haleem, the founder of Helium, highlighted recent progress, noting that two of the three major US carriers are currently testing the Helium network. Only 23 hotspots are part of the beta testing, and they have already served over 183,000 subscribers.

Considering Helium’s year-to-date performance, which remains down by approximately 30%, the recent gains appear to be part of a recovery phase rather than an outright boom. This suggests cautious optimism among investors. At the same time, HNT price prediction models hint towards a continuous rise in value from now on, which more and more seems like the correct projection, given the rise in usage.

What is Helium?

Helium is a revolutionary decentralized blockchain network designed to enhance the Internet of Things (IoT) ecosystem. Unlike traditional centralized systems, Helium leverages a global network of hotspots that serve as wireless gateways, enabling IoT devices to communicate and share data seamlessly. This innovative approach provides a more efficient, secure, and scalable solution for IoT connectivity, addressing many of the limitations inherent in conventional systems.

At the core of Helium’s model is its unique incentive mechanism, which rewards participants, known as “hotspot owners,” with HNT tokens. These individuals deploy Helium hotspots, which contribute to network coverage and verify connectivity. In return, they earn HNT tokens based on the quality and extent of the coverage they provide. This decentralized incentive structure not only promotes widespread network expansion but also ensures robust and reliable connectivity for a multitude of IoT applications.

Helium’s use cases are vast and varied, spanning from smart cities to agriculture and logistics. By providing low-power, wide-area network (LPWAN) coverage, Helium enables devices such as smart sensors, tracking systems, and environmental monitors to operate efficiently over long distances with minimal energy consumption. This capability is particularly valuable in rural and underserved areas where traditional internet infrastructure is lacking. Furthermore, Helium’s secure, blockchain-based network ensures data integrity and privacy, making it an attractive option for businesses and developers looking to deploy IoT solutions at scale.

Helium’s recent advancements, including the launch of Helium Mobile and partnerships with major US carriers, underscore its growing influence and potential in the IoT landscape. As the network continues to expand and evolve, it promises to play a pivotal role in shaping the future of IoT connectivity, offering a decentralized alternative that is both innovative and highly effective.

Running a Hotspot – Staking

Helium staking is a process that allows participants to earn rewards by locking up a certain amount of HNT tokens to support the network’s functionality and security. In the Helium ecosystem, staking is primarily associated with running validators, which are crucial components of the network responsible for maintaining the blockchain’s integrity and verifying transactions.

To participate in staking, an individual or entity must become a validator. This involves running a validator node, which is a specialized computer system that performs the tasks necessary to validate transactions and maintain the blockchain. To qualify as a validator, one needs to stake a specific amount of HNT tokens. This stake acts as a form of collateral, ensuring that validators act in the best interest of the network. The required staking amount can vary, and the details are outlined by the Helium network’s protocol.

Validators earn rewards in the form of additional HNT tokens. These rewards are distributed based on the amount of HNT staked and the performance of the validator node. Rewards incentivize validators to maintain high performance and reliability, contributing to the overall health and efficiency of the network. By staking HNT tokens, validators help secure the network against malicious activities. If a validator acts dishonestly or fails to meet performance standards, they risk losing a portion of their staked tokens. This mechanism ensures that validators are financially motivated to act correctly.

Staking provides a way for HNT holders to earn passive income. By locking their tokens in a validator node, they can receive regular rewards without actively trading or participating in network operations. Staking helps ensure the stability and security of the Helium network. Validators play a critical role in transaction verification and network maintenance, making the staking process vital for the network’s integrity. Additionally, staking encourages broader community involvement in the Helium ecosystem. By allowing token holders to participate in network security and governance, it fosters a more decentralized and resilient network.

However, there are risks and considerations associated with staking. When tokens are staked, they are locked up for a certain period, during which they cannot be traded or used. Participants need to be comfortable with having their tokens inaccessible for this duration. Validators who do not comply with network rules or who perform poorly may face penalties, including losing a portion of their staked tokens. This risk underscores the importance of running reliable validator nodes. Moreover, the value of HNT tokens can fluctuate, affecting the overall returns from staking. Participants should be aware of market conditions and potential impacts on their staked assets.

Overall, Helium staking offers a compelling opportunity for HNT holders to contribute to the network’s security and earn rewards. However, it requires a commitment to maintaining a reliable validator node and an understanding of the associated risks.