In this educational guide, we’re going to explore the altcoin named Helium (HNT). We’ll cover its fundamentals and planned roadmap, so you can use it to make your own price prediction.
HNT functions as a decentralized and open wireless network built on top of the native Helium blockchain. It uses a new type of consensus work algorithm referred to as “Proof of Coverage” and its algorithm for consensus is based on HoneyBadger BFT. The Helium Network routes data for long-range, lower power Internet of Things (IoT) devices that use Helium’s LongFi protocol.
As of the time of writing, HNT currently ranks in the #50 of top cryptocurrencies by market capitalization. Let’s explore the value, implementations, and price of Helium’s native HNT token.
What is Helium and how does it work?
The Helium network is meant for powering Internet of Things (IoT) devices. The network was launched in July of 2019 and was meant to allow a multitude of low-powered wireless devices to communicate with each other and send data across its nodes network that is spaced out geographically in physical locations such as major urban areas, cities, and more.
What makes Helium unique is that it aims to improve the communication capabilities of smaller IoT devices and make their network decentralized. Helium is even referred to as “The People’s Network” in its official literature.
Helium network participants can purchase Hotspots—these are a combination of a wireless gateway and a miner—or they can build their own hotspots. Each hotspot provides network coverage over a certain radius and enables the user to mine the blockchain’s native HNT token for financial incentives.
As such, Helium’s structure of nodes are these hotspots placed in geographical physical locations that allow for geographical coverage of network service areas. Helium’s founders, in 2013, believed that the wireless connectivity options at the time were inadequate for the next generation of devices and machines. In response, they developed the Helium Hotspot, which is a combination of a physical blockchain node and wireless gateway that network participants can deploy to receive compensation in HNT native tokens.
Hotspots must submit proof of wireless coverage in a cryptographically verified location and time to receive compensation in HNT tokens. The wireless protocol that devices connect to is referred to as the Helium LongFi and any small battery-powered devices can connect to the network for sending small amounts of data over miles or kilometers of range and connectivity.
Helium hotspot providers are rewarded in HNT in proportion to the quality of coverage they provide as well as the amount of LongFi sensor data they transport for devices connected to the network.
HNT Tokens & Data Credits
The HNT token is used for rewards for hotspot providers providing network coverage as well as for a non-fungible token on the Helium network that is referred to as “Data Credits.”
Data Credits are produced by burning HNT tokens and these Data Credits are what is used to pay transaction fees on the network. Data Credits are also required for activities like sending sensor data and asserting Hotspot location.
Below are the 5 main ways Helium Hotspots can earn HNT tokens:
- Network transfers: Hotspots transfer data on the Helium network from devices using the network. They are rewarded proportionally for their overall share of data transferred
- Proof of coverage: Hotspots earn HNT tokens participate in network consensus and validating other hotspots’ wireless coverage
- Witnesses: Hotspots monitor and report on proof of coverage
- Consensus group: Hotspots validate transactions and also publish new blocks. Hotspots earn a reputation score based on their proof of coverage participation, which affects the likelihood of them participating in the consensus process.
- Challenges: Hotspots are chosen to encrypt messages over the Internet to a target group of other hotspots. By participating in these challenges, hotspots can earn more HNT tokens and help validate more wireless coverage.
Token Distribution
HNT has a max supply of 223,000,000 tokens which is a fixed, capped supply.
As of the time of writing, in April 2022, there are 114.2M HNT tokens in the circulating supply (51%).
The token emission type involves a feature known as “burn and mint equilibrium” which allows the supply of HNT tokens to respond to network usage trends and lead to a static month on month HNT supply when equilibrium is achieved.
5M HNT are generated via mining every single month. Rewards are distributed at the end of each mining period, every 30 to 60 minutes. These rewards are allocated as follows:
- 30% allocated to Network Data Transfer, this allocation increases by 2.5% each year
- 35% allocated to Hotspot Infrastructure, this allocation increases by 1.5% each year
- 35% allocated to Helium, INC, and Investors until the Data Credit mechanism is live. This allocation decreases by 1% each year.
Helium (HNT) Price History & Technical Analysis
As of the time of writing, in March 2022, the price of HNT is at $25.14, with a market capitalization of $2.8 billion USD.
The total value of Helium’s network will function similar to a social network, meaning as more people use the network and its network coverage grows to allow more devices to connect to the network over a larger geographical area which also allows for greater data transfer, its market capitalization will continue to increase.
As demand for the usage of the HNT token goes up, its price will increase in turn, especially due to its fixed and capped max supply. While address growth alone does not necessarily translate to the growth of users, it is still a way to gauge growth. Metcalfe’s Law states that the value of a network is directly related to the number of users of that network.
What Expert Analysts say about Helium:
- CRYPTOPOLITAN says, "The Burn and Mint equilibrium (BME) of HNT won’t truly kick in until mass adoption and massive IoT activity on the network, correct. However, the beauty of BME token models is that HNT can essentially “float” without being directly tied to usage, which keeps the network affordable to IoT vendors. If the tech works as intended and companies and consumers adopt the network, it could go up a lot if it fizzles out or gets acquired somehow, not looking good. Hard to project the price.
From what we observed since a month ago, selling pressure was relatively low, while interest and engagement in the network remained high, which fueled speculative buying. As long as people feel “good” about holding HNT and supporting the project, we can project on a bright road ahead." - Capital.com Blog says, "Despite the latest downward price action, algorithm-based forecasting service Wallet Investor gave a bullish HNT crypto price prediction noting that it is “an awesome long-term investment” adding that it has a long-term earning potential amounting to 98.16%.
Based on its analysis of the past price performance, Wallet Investor predicted that HNT will cost $68.201 in 2022 and will reach $214.579 by 2026.” - DigitalCoinPrice supported the positive Helium coin price prediction, expecting the coin to grow to $59.98 in 2022. Although the forecasting site didn't provide HNT crypto price prediction for 2030, it saw the token rising to $70.05 by 2025 and eventually reaching $155.45 in 2028.”
Helium Partnerships
Helium has forged several partnerships to facilitate growth of “The People’s Network.”
DISH, a major telecom carrier, is the first major carrier to deploy Helium 5G and to support open source and low cost wireless connectivity ecosystems. By deploying Helium 5G, DISH can utilize Helium’s unique blockchain-based incentive model with other customers deploying their own 5G CBRS-based hotspots.
Actility is the latest roaming partner on the Helium Network. This partnership adds mass enterprise adoption and usage to Helium Network and immediately unlocks ubiquitous coverage for millions of IoT devices.
Senet has announced a partnership as well with Helium to connect billions of devices. Senet is a leading provider of cloud-based software and services platforms that enable global connectivity and on-demand network build-outs for the IoT.
San José Smart City has become the first city to launch on the Helium People’s Network.
Helium is also currently used by Salesforce, Lime, Airly, Agulus, Conserv, Careband, Mimiq, Nobel Systems, Lonestar Tracking, Nowi, Digital Matter, and others.
Investors in Helium include prominent VC firms such as Multicoin Capital, Khosla Ventures, SV Angel, and others.
Helium Price Prediction: 2022-2026
HNT’s price remained under $4 for the early half of 2021. HNT saw a huge bullish period of price growth starting in the spring of 2021 and first put in a peak around $20.
The price then retraced during the May 2021 bearish period, while the overall crypto market was bearish, and then peaked again even higher at $57.6 in October 2021. This is the current all-time-high for HNT and since then, the price has declined steadily and settled back in the mid-20s range.
However, the market is following an overall rising trendline on this weekly chart timeframe— the last time its support around $8 was tested was in summer of 2021. The market stalled over it for a while. Even despite the bearish price pressure during the beginning of 2022, the market has still not touched that support, and instead continues to hover above $20, which is a great sign.
This means that it is likely that HNT remains above its price of $20 during the remainder of 2022 and continues its bullish price pressure. With more expanding partnerships and devices being added to the Helium network every week, investors expect the previous all-time-high to be breached above $57.6 much before 2026. If the market structure remains unchanged for HNT, we might see it go beyond $100 by 2023 or even earlier.
Helium Price Prediction 2022
With the price continuing to hold well above summer 2021’s lows of $8, and Helium’s continued strong partnerships and developing expansion, Helium’s growth continues to look positive. This makes analysts predict that Helium will see above its previous all-time high of $57 during 2022, which is looking very likely to happen whenever the crypto market resumes its bullish price action.
Helium Price Prediction 2023
With the growing necessity for proof of coverage and connectivity with IoT devices as society becomes even more dependent on technology, we expect to see continued growth of such strong offerings such as Helium. This could make HNT see above $100 by 2023.
Helium Price Prediction 2024
The Helium roadmap provides us a glimpse of planned improvements to the protocol, and the growing market capitalization looks promising. The market capitalization alone remains at only $2.8 billion in March 2022, and a conservative double or triple to reach $5.6 billion to $8.4 billion by 2024 would put the HNT price at $50 or $75.
However, it’s possible that if above $100 is seen in 2023 itself, it would not be unreasonable to see Helium reach a $15B market capitalization during 2024, which is more than a 5X increase from its current $2.8B market capitalization, putting its HNT price at $134.
Provided the overall crypto market remains bullish and we can avoid an economic downturn and bear market overall, this could mean we have the potential to see HNT at $133 or higher by 2024.
Helium Price Prediction 2025
2025 is still far away at the time of this writing. The continued developmental challenges in blockchain are uncertain to extrapolate that far out, along with the growth of IoT devices and more. However, the need for greater connectivity for smart devices does not appear to be slowing down anytime soon and this means that Helium remains a great contender. We predict we will see Helium at $150 or above by 2025.
Helium Price Prediction 2026
The crypto market overall could very well be worth $10T in total market capitalization by 2026. Depending on regulations and the overall economic cycles of the economy, we may see Helium as high as $200 by 2026.
None of these predictions are financial advice, and are educated guesses as to where Helium’s price may be at each time interval. It should be noted that any major financial hack or error could change these predictions.
For example, the protocol’s consensus could be revealed to have some critical flaw in the future, regulatory laws could put HNT or other areas of crypto in hot water, or companies could always abandon a project. While these are unlikely compared to an overall economic downturn or contraction, they are all possibilities that can affect the price.
Helium (HNT): Conclusion Price Prediction
Helium is a top contender long-term that anyone can retain in his or her wallet for the long haul and not worry about day-to-day price fluctuations, thanks to it being a critical part of the smart devices and IoT trend overall.
Helium has no plans to stop expanding its coverage areas, adding partners, innovating and increasing hotspot density, and increasing incentives for onboarding new users and devices.
Many investors are hesitant to commit their money into an asset for an extended period of time due to the volatility of the cryptocurrency markets. However, it’s great to see top companies such as DISH and Salesforce, among others, working and partnering with Helium.
So, there is clearly potential for HNT as a great investment longer term as the network grows.
FAQs
How is Helium gaining traction?
Many people are interested in Helium’s price and potential because of its significant technological advantages and partnerships with top companies such as DISH. Investors trust this cryptocurrency and see the value of HNT to continue to expand its wireless network that allows IoT devices to connect to it and transfer data packets across the network. Any cryptocurrency would lose value if no one bought it, and people continued to sell. Because the overall market believes in the technology Helium offers, the price continues to hold and increase.
Where can I Buy Helium?
HNT, the token, can be bought and traded on all major centralized platforms and exchanges such as Binance, KuCoin, and Voyager, and others for all major fiat currencies such as USD, GBP, and EUR, or even for crypto pairs such as trading BTC or ETH for HNT.
In comparison to other cryptocurrencies, how can Helium secure privacy?
HNT is a public blockchain, meaning all transaction data is publicly available on the network for any party to see. In addition, devices and nodes connecting to the Helium network can transmit geolocation data due to how this network operates.
Users should therefore not expect complete privacy, but this FAQ on security can clarify how to keep Helium Hotspots secure.
Helium-enabled LoRaWAN devices are hardware-secured to protect the traffic from the utilized spectrum. This means the security is built-in since devices using the network have AES private key encryption at the chip level.
Is it possible to stake Helium?
Yes, HNT tokens can be staked on validator nodes which requires a minimum stake deposit of 10,000 HNT. Users with under 10,000 HNT can also coordinate with independent staking providers and delegate their HNT to earn rewards and help secure the network.
Why is Helium on the rise?
HNT tokens are on the rise because of its use case as a blockchain network and unique data transfer network for IoT devices, its strong partnerships, and its advantages offered in its unique consensus model as well as its advantages over other blockchain networks like Bitcoin and Ethereum in transaction throughput and cost, especially for smart devices across a geographical area.
Is Helium completely anonymous?
No, all public ledgers are completely visible for all transaction data to all parties on the blockchain. Helium is a public blockchain, so any party can see all transactions on the public Helium blockchain explorer, though it may be pseudonymous, meaning the user’s name is not necessarily linked to the transactions or wallet addresses. However, depending on where the users sources their HNT tokens and funds it with fiat, blockchain forensics can easily identify the user’s identity.
Is HNT considered a currency?
Yes and no. While HNT itself does not function as the currency for transaction fees on the network, HNT tokens are burned to produce Data Credits, which do go to paying transaction fees on the network. HNT functions as a reward for Helium Hotspot operators for securing the network.
Is it possible to generate profits with Helium?
Yes, it may be. Helium is expected to grow over the years and months to come as the world of IoT devices expands further. However, all investors must do their own research, due diligence, and ensure that they are comfortable with the amount of risk they are taking. All cryptocurrencies are extremely volatile and risky. Always proceed with caution.
Why do people believe in Helium?
Some analysts believe that HNT is one of the most advanced decentralized wireless networks allowing smart devices to communicate and send data in existence at the lowest cost and higher throughput.
Is Helium supply limited?
Yes, the HNT token supply has a fixed supply of 223,000,000 (223 million) HNT tokens. As such, as the demand for HNT tokens goes up, the price of HNT rises.
How does the Helium team investigate suspicious or fraudulent transactions?
It is not clear how the Helium team controls the investigation of fraudulent transactions yet. However, in their FAQ, it is noted that Helium-enabled LoRaWAN devices are hardware-secured to protect the traffic from the utilized spectrum. This means the security is built-in since devices using the network have AES private key encryption at the chip level.
While inexpensive to use, the Helium network is not free. Any transaction requires data credits. This is inherently a deterrent for potential scammers. Thanks to Helium’s blockchain explorer, all participants and associated systems also have a real-time view of transactions used for predictive analysis and detection of fraudulent activities.
DISCLAIMER
This is not financial advice, only observations and speculation. All investors should do their own research and due diligence. The crypto markets are extremely volatile and losing your investment is possible.
