Helium (HNT) has been the focus of the crypto sector this week after recording a jump of more than 30% from its daily low, $ 13.8 to $ 18.55.
The increase in asset value was driven by token sales that successfully raised $ 111 million from a group of investors including Andreessen Horowitz (a16z), Alameda Research, Multicoin Capital, and Ribbit Capital.
Briefly on Helium, it was founded in 2013 by Shawn Fanning, Amir Haleem, and Sean Carey with the goal of using blockchain technology to create the world’s first wireless peer-to-peer network.
Alameda Research founder Sam Bankman-Fried described Helium as a great opportunity to expand the use of 5G while improving the quality of life of the world's population.
Three main reasons for the sustainability of the Helium network:
The growth of node ecosystems that provide coverage to networks
In July, the Helium network managed to see the growth of its node network surpassing the 100,000 mark. At the same time, the increase in hotspot demand has resulted in more than 50 hotspot manufacturer applications being delivered through the Helium Improvement Proposal (HIP) process 19.
Interestingly, the growth of the network is intensifying with the introduction of the latest hotspots involving ‘Light’ hotspots and data hotspots only. As of Aug. 10, a total of 117,377 nodes were operating on the Helium network with the majority from the United States (US), Europe, and China.
New data partners join the network
The Helium Network is witnessing the new entry of several data partners into this ecosystem. Among the latest firms to join them is GPS tracker manufacturer, Invoxia. Other than that include Salesforce, Conserv, Smart Mimic, and myDevices.
With the increase in the number of nodes means more companies will join the Helium network.
HNT cycle supply reduction factor
The increase in HNT prices is also seen to be due to the halving process that occurs on a monthly basis. Recently the network has reduced HNT production from 5 million to 2.5 million.
Not only that, Helium has also introduced a staking validator on July 23, which is also the impetus for the increase in HNT prices.
Helium offers a lucrative project in terms of its use in the real world and its potential to grow in the long and short term.
At the time of writing, HNT is trading at $ 18.17, registering an increase of over 26% in 24 hours.
