Helium (HNT) and IoT Innovations
Helium (HNT) is a unique blockchain platform developed specifically for the Internet of Things (IoT) devices. The platform enables wireless devices to effectively communicate with one another and exchange data.
Helium uses Hotspots that refer to nodes that allow earning additional rewards in HNT. In this manner, every user can receive compensation proportional to their productive contribution to the functionality of the entire network. Helium’s developers aim to specify the major inefficacies in the current system of the IoT and offer relevant improvements that may combine the high cost-efficacy and reliability. Helium uses a comparatively innovative consensus mechanism proof-of-coverage that presupposes a new approach to nodes’ collaboration under the conditions of variable quality of connection. In addition, Helium allows its users to cover transaction fees via Data Credits, specific tokens developed for this objective. In this manner, the platform differentiates between different functions offered to its users.
HNT’s current price is $27.33 with the circulating supply of 110.7 million. At the same time, the current supply is just 50% of the maximum possible supply of 223 million. Overall, Helium’s maximum supply is much lower in comparison with most other cryptocurrencies. Its current capitalization is $3.0 billion, making it the 46th cryptocurrency in terms of market capitalization. Helium has reached the all-time-high level at the same period as the entire crypto market. It also indicated some positive dynamics in January but still experienced the rapid decline, following the growing investors’ concerns. Its current price is slightly above 50% of the all-time high level above $52 reached in November of 2021. The further development of the IoT segment is expected to promote the higher demand for HNT globally.
Figure 1. New Mining Method as Promoted by Helium;
Data source – Helium’s website
Investing in Helium: Pros and Cons
As the sustainable development of the IoT appears to be objectively predetermined, the most effective platforms specialized in providing additional functionality to users may experience a rapid growth. Helium has a number of serious advantages in comparison with its main competitors. In particular, its innovative consensus mechanism and all users’ involvement contribute to the higher degree of decentralization with the maximum reliability standards. However, the short-term dynamics of its price is much more uncertain.
Figure 2. Price Dynamics of HNT/USD (1-Month); Data source – CoinMarketCap
Currently, there are two strong support levels for HNT. The first one is at the price of $20, the lowest level during the past month, and the second one is at the price of $24.5 that provided the effective support two times within the past 3 weeks. At the same time, the resistance level at $32.2 prevents Helium’s price from approaching the level of the end of 2021. Long positions should be opened only after exceeding this level. In general, Helium has a considerable potential for the further capitalization growth but it requires proportional support from the entire crypto market. Under such conditions, it may demonstrate the rates of growth that will exceed those of BTC, ETH, and other major cryptocurrencies as confirmed by its dynamics in September-November of 2021.