HNT price prediction: rise or sink?
Helium has been on a bullish trend after announcing a partnership with Dish
It has been a successful year for Helium, with the blockchain venturing into 5G coverage and the HNT price ballooning to an all-time high. But will helium’s price continue to rise?
The idea of Helium tracks back to 2013 where the founders embarked on a mission for a decentralised internet and described it as “the people’s network”. Helium, which launched in 2019, pays users in its native cryptocurrency, HNT, for hosting a Helium Hotspot.
After Helium revealed a new partnership with the major carrier Dish, HNT broke its previous price record. Can the network-based cryptocurrency keep up the momentum?
Helium’s price history
The genesis Helium block was mined in 2019 and it took a while for the price to get past the $1 barrier. In August 2020, the HNT price saw a spike as it launched data credits, another token based on the Helium blockchain. Data credits are part of a dual token system as the token can only be produced by burning HNT. The main use of data credits is to pay for using the Helium network.
The launch of data credits proved to be a valuable move for helium as the price jumped from $0.67 on 11 August to $1.77 on 15 August, after the announcement. This momentum continued into September, where the coin surpassed the $2 mark, as the rate of data credits to HNT was updated in a “Helium Improvement Proposal”, dubbed a “HIP”.
Another HIP was approved by the community in November 2020, which set a maximum supply limit for HNT of 223 million, to ensure the scarcity of the currency. The update also introduced the concept of halving. A helium halving takes place every two years and halves the amount of helium that can be mined in a month.
The HNT price had fallen below $1 on 31 October and after the announcement of the supply changes it saw another spike. The price reached $1.80 on 21 November, two days after the announcement. This was just a taste of things to come.
This has proven to be a bullish year for helium. The price started to climb in January and surpassed $5 in March. Helium then passed another HIP on 14 April that allowed it to start providing 5G coverage, making it the world’s first consumer-owned 5G Network.
Later that month, Helium revealed it was partnering with FreedomFi to start its 5G coverage. FreedomFi makes gateways, which are hardware designed to mine HNT and hotspot 5G coverage. In the United States, the former head of the Federal Communications Commission, Michael O’Rielly said in a press release: “Turning consumer gateways into network distribution tools and merging with ultra-hot cryptocurrency — consistent with the companies’ plans — may just be the step needed to help supercharge private 5G deployment. Now we get to see if the market agrees!”
The market did agree. After the 5G announcement, the HNT price skyrocketed to $18.66 on 6 April and went on to hit $19.51 on 28 May. It settled down below the $15 mark over the next two months, but it did get past the psychological $20 barrier in August.
August proved to be an eventful month for the blockchain-based network. The first halving took place on 1 August, reducing the annual amount of mineable HNT from 60 million to 30 million. Ten days later, Helium revealed it had raised $111m in fundraising in a token sale that was led by the American venture capital firm Andreessen Horowitz. This was expected to fund Helium’s 5G network rollout. It also boosted the helium price, so that by 31 August HNT had reached $24.81.
Helium’s momentum carried on in the following months as it announced a partnership with network carrier Dish. The partnership was revealed at the end of October and allows Dish subscribers to run Helium nodes and earn HNT for sharing the 5G network. This was a big step for the blockchain, as Dish was the first major carrier to join its mission.
November has been a successful month for the HNT price so far. On 1 November, the coin was priced at $28.26 and by 12 November it had jumped to its all-time high of $55.22. The price has fallen slightly since then. As of 24 November, it was hovering around $43.
HNT price prediction
The helium coin price prediction varies, depending on who you ask. The cryptocurrency exchange aggregator SwapSpace expects a long-term price increase and considers it a profitable investment. Its helium price prediction said: “Overall Helium cryptocurrency has a positive outlook and potentially will continue growing in the future.”
The HNT crypto price prediction from Digitalcoin forecasts helium to reach $64.39 by the end of the year. It expects a gradual increase in 2022 with the price hitting $74.08. Its HNT price prediction 2025 is for the coin to balloon to $125.71.
Gov Capital has a more optimistic outlook and its HNT price prediction 2022 is for the coin to reach $136. It expects the price to keep growing at a high rate with a staggering HNT price prediction of $826 in five years’ time.
The PricePrediction site is even more optimistic, suggesting a maximum price for helium of $77.48 in 2022, $233.07 in 2025, and all of $1,432.47 for its HNT price prediction in 2030.
It could be. Although the HNT price predictions are mixed, there is a consensus that the coin will see an increase in the following years. Gov Capital forecasts it to reach $136 within the next 12 months while Digitalcoin’s 2022 prediction of $74.08 is more restrained. Remember, predictions are often wrong, so you should always do your own research and never invest more than you can afford to lose.
HNT’s value derives from the Helium network. Data credits are tokens that pay for using the Helium network and are minted by burning helium. This means helium becomes rarer and more valuable when the network is used often.