Helium Takes Advantage of Solana Migration: What’s Next for HNT?

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The Helium (HNT) cryptocurrency was up 14% yesterday. The enthusiasm for the proposed migration to the Solana blockchain thus had its effect.

Currently valued at $4.70 on CoinGecko, HNT has seen trading volumes increase by 164% to reach 182 million dollars in the day yesterday.

Helium builds a decentralized and wireless network. However, this vision was not necessarily accompanied by progress in the development of the product. This is partly explained by the real practical difficulties deploy a network capable of connecting at least hundreds of thousands, or even millions, of Internet of Things devices (IoT for Internet of Things) without latency issues.

The news that the project had finally found a solution to these difficulties by proposing to adopt the high-speed Solana blockchain was initially received negatively. The price of the HNT token which was then trading in a rather descending range for the past few weeks, saw his situation is improving significantly in recent days.

Helium Takes Advantage of Solana Migration Whats Next for HNT
Helium (HNT) price up on the day of September 8

Is Helium taking a step back from blockchain technology for its core product – wireless connectivity?

At first glance, Solana’s news should have been unequivocally positive for this Web3 project. However, after analyzing the proposal in more detail, it quickly became apparent that it was not as positive as the proponents of the project had hoped.

To take advantage of the network, a user must purchase a Helium hotspot. This requires an outlay of several hundred dollars. But since each hotspot to connect IoT devices only pays $0.27 per dayaccording to the Helium Tracker, it will take some time before this expense becomes profitable.

The economy is therefore far from attractive. This thus illustrates the theory that it doesn’t really make sense to run an IoT connectivity network on a blockchain.

So, as understood by those with deep knowledge of the situation, such as the authors of the proposal, the faster Helium will toggle its functionality first from its own native blockchain to a centralized system, the better.

The two fundamental attributes of the protocol – proof of coverage and accounting for data transfers – will be removed from the blockchain, if the proposals are implemented.

Here is the important part of the proposal:

“In the current architecture, specific transactions including proof of coverage and data transfer accounting are unnecessarily processed on-chain. devices and blocky data communication issues, which clogs the network and slows processing times. HIP 70 proposes to transfer these processes to Oracles, which will solve these problems and further stabilize the network.”

Helium price: what is Solana’s place in the ecosystem?

So what exactly will Solana be used for, if adopted as a new technology? It seems like all that’s left for blockchain to do is accounting work on the distribution of rewards – which, it must be said, is an eminently sensible thing for a blockchain to be used for.

Deploying the blockchain to manage rewards alone may not be true to the mission statement, but it seems so much more. feasible. This is certainly what explains the renewed interest of buyers for Helium.

And this, even if Solana has her own problems. Indeed, one might sometimes wonder if this is a public beta version and not the final production version. Not a month goes by without there being a problem or a breakdown on the Solana network…

New Helium Economy Requires Greater Visibility

Still, Solana is improving and, with transactions per second on the order of 2,000it is probably well suited for managing the distribution of rewards.

Exactly how these new economies work in terms of the value of Helium’s HNT token, however, requires greater visibility.

What we are currently seeing in the market is perhaps a reversal of the principle “buy the rumour, sell the news” in favor of the principle “sell the news and buy the rumour”.

In other words, buyers can bank on Helium presenting a concept that offers HNT holders exposure to the future success of the IoT network as a distribution layer, as opposed to the basic connectivity layer.

Another factor that may have caught investors’ attention is the Helium Pro app, launched in early September, which allegedly facilitates HNT mining, and which we discussed at the time of its launch.

HNT technical data suggests a process of returning to normal.

1662809151 852 Helium Takes Advantage of Solana Migration Whats Next for HNT
HNT/USD over one day (September 8, 2022): Helium price exits selling pressure

HNT price is down month on month (-29%) and week (-6.2%), according to CoinGecko.

On the relative strength index, price broke out of the oversold position below 30, and is now comfortably printing a reading of 41. However, HNT continues to trade well below its simple moving average 200 and 50 days, suggesting that support may take time to build in the near term.

The token has been trending down since February 23. It rebounds today from the lows last seen in February 2021. Bulls will surely take this analysis as it indicates that the bottom may have been reached.

Apart from the technical analysis, one can also mention that the trading plan has improved, assuming that the stakeholders accept the approach taken by the designers of the HIP 70.

So if you are looking for a web3 cryptocurrency to buy which has high growth potential, despite the ongoing crypto winter, HNT can be a solution!

1662809151 471 Helium Takes Advantage of Solana Migration Whats Next for HNT
Helium (HNT) is rebounding from the lows reached in February 2021.

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Helium Takes Advantage of Solana Migration: What’s Next for HNT?

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