HNT price prediction: Will it rise or sink?

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HNT had a successful 2021, but 2022 is proving to be a more difficult year

The Helium coin logo in front of a price graph                                 
Will Helium reach $100 in 2022? – Photo: Shutterstock
                                

Contents

Helium enjoyed a successful 2021, with the blockchain venturing into 5G coverage and the HNT price ballooning to an all-time high in November. The token has been struggling in the long-running bear market, however, hitting lows of $6.59 on 12 May. Since that price point, the token has made some headway and as of 10 June, is trading at $11.75.

The idea for Helium tracks back to 2013, when its founders embarked on a mission to create a decentralised internet, dubbed The People’s Network. Helium, which launched in 2019, pays users for hosting a Helium Hotspot. This payment is made in its native cryptocurrency, HNT.

After Helium revealed a new partnership with the major carrier Dish in October 2021, the HNT coin broke its previous price record.

The network-based cryptocurrency has not managed to maintain the 2021 highs. It has been largely stuck in a downtrend over the past few months, losing almost 80% since its all-time high last November. Can HNT escape this bearish trend and make a more substantial recovery? Read on for the latest HNT price prediction.

From the Helium whitepaper

The whitepaper, Helium: A Decentralized Wireless Network, was published on 14 November 2018 and is 20 pages long.

It offers a modern alternative to “current network solutions such as cellular, WiFi and Bluetooth”, stating that such technologies “are suboptimal: they are too expensive, too power-hungry or too limited in range”. 

It goes on to say: “The Helium network is a decentralised wireless network that enables devices anywhere in the world to wirelessly connect to the internet and geolocate themselves without the need for power-hungry satellite location hardware or expensive cellular plans.” 

The document presents the Helium Consensus Protocol as: “Satisfying the design requirements of being permissionless, decentralised, byzantine fault-tolerant, based on useful work, and with a very high-rate, censor-proof transaction mechanism.”

Helium’s price history

The first Helium block was mined in July 2019, but it took more than a year for the price to break through 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, which means they 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. Following the announcement, the price jumped from $0.67 on 11 August 2020 to $1.77 on 15 August 2020. This momentum continued into September, when the coin surpassed the $2 mark as the ratio of data credits to HNT was updated in a Helium Improvement Proposal, or 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 per month.

The HNT price had fallen below $1 on 31 October 2020, but after the announcement of the supply changes, it saw another spike. The price reached $1.80 on 21 November 2020, two days after the news was announced. It was just a taste of things to come.

Charge upwards 

Last year was a bullish one for Helium. The price started to climb in January 2021, and surpassed $5 in March. Helium then passed another HIP on 14 April 2021 that allowed it to provide 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: hardware designed to mine HNT and provide hotspot 5G coverage.

Commenting on the news, the former head of the US Federal Communications Commission, Michael O’Reilly, said: “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 2021 and hit $19.51 on 28 May. It settled below the $15 mark over the next two months, then passed the psychological $20 barrier in August.

First halving and Dish hook up

August 2021 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 a year to 30 million.

Ten days later, Helium revealed it had raised $111m in fundraising in a token sale led by the American venture capital firm Andreessen Horowitz. The new capital was expected to fund Helium’s 5G network rollout. It also boosted the Helium price so that by 31 August 2021, HNT had reached $24.81.

Helium’s momentum carried on over the following months as it announced a partnership with network carrier Dish. The collaboration was revealed at the end of October and allows Dish subscribers to run Helium nodes and earn HNT for sharing the 5G network. The move was a big step for the blockchain, as Dish is the first major carrier to join its mission.

November 2021 was a spectacular month for the HNT price. On 1 November, the coin was priced at $28.26. From there, it accelerated upwards to reach its all-time high of $55.22 on 12 November. However, by 25 November 2021, the HNT price was hovering around $43.

The price dropped further in December and saw lows of $26.03. The reduction was largely attributed to volatility across the broader crypto market, and Bitcoin fell by 19%. By 24 January 2022, HNT was valued at a 14-week low of $19.96.

On 18 February 2022, HNT successfully raised $200m in a funding round. Among the investors in the Series D funding round were Tiger Global, an American investment firm, and FTX Ventures, a $2bn fund run by FTX, the cryptocurrency derivatives exchange, to support innovative crypto firms and businesses building the future of Web3.

The token saw some price recovery after this, peaking at $25.73 on 28 February. But it eventually lost these gains and was trading at $21.66 on 8 March.

Helium revealed some major news at the end of the month. It was rebranding the corporate parent Helium Inc to Nova Labs. It wrote in a blog post: “With this name change, we aim to provide a clearer distinction between our corporate entity and the open-sourced Helium network that is owned and operated by the people, and unite the Helium community under a shared brand.”

Following the rebrand, HNT peaked at $27.85 on 4 April 2022. The token resumed its bearish trend and plummeted to lows of $6.59 on 12 May. The coin made a partial recovery but largely traded sideways for the following weeks.

More positive developments were in store for the platform and on the 8 June, the following was announced on Twitter:

At the time of writing on 10 June 2022, Helium is trading at $11.75. Looking to the rest of 2022, is there a likely price surge on the cards for the people-powered network?

Helium 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 HNT price prediction said: “Overall, Helium cryptocurrency has a positive outlook and potentially will continue growing in the future.”

The HNT crypto price prediction from DigitalCoinPrice forecasts Helium to reach $15.53 by July, and $15.83 by the end of the year. Its HNT price prediction for 2025 is for the coin to reach an average value of $22.56 and it suggests it could hit $53.68 by 2030.

Gov.Capital has an even more optimistic outlook – its HNT price prediction for 2022 is for the coin to break the $30 mark in October this year. It then expects the price to climb steeply, giving a staggering HNT price prediction of $64.94 in one year and $478.18 in five years’ time.

PricePrediction.net also has optimistic projections, suggesting an average price of $10.58 in July and $12.03 in December 2022. The forecast for 2025 is a yearly average of $38.73, and $263.26 for its HNT price prediction for 2030.

FAQs

Is Helium crypto a good investment?

It might be. Although the HNT price predictions are mixed, there is a consensus that the coin will increase in value over the longer term.

Remember, however, that predictions are often wrong, so you should always do your own research before purchasing cryptocurrency and never invest more than you can afford to lose. No matter what the forecasts say, cryptocurrencies are highly volatile and prices can go down as well as up.

What gives HNT value?

HNT’s value derives from the Helium network. Data credits pay for using the Helium network and are minted by burning Helium. This means Helium becomes rarer and more valuable as network use increases.

Should I invest in Helium (HNT)?

Potentially – there is a chance that HNT will rise. Forecasters have a largely positive sentiment.

If you do decide to invest in HNT, please conduct thorough due diligence and never invest more than you can afford to lose.

Further reading

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