Helium Price Benefits From Solana Migration Plans - Where Next for HNT?
Helium crypto is trading 14% higher today as enthusiasm for its proposed migration to the Solana blockchain picks up steam.
Currently priced at $4.92 on CoinGecko, HNT has seen trading volumes surge 164% to $182 million in the past 24 hours.
Helium is building a decentralised wireless network but the bold vision hasn’t been matched by product development progress.
Part of the reason for that may be the real practical difficulties of rolling out a network that can at minimum connect hundreds of thousands, if not millions, of Internet of Things (IoT) devices without problematic latency issues.
The initial news that the project had finally settled on a solution to those difficulties through the proposal to adopt the high throughput Solana blockchain was initially greeted negatively.
Helium token price has been trading in an acute descending channel since early August, but that started to turn around yesterday and today.
On the face of it the Solana news should have been unequivocally positive for this Web3 project.
However, after digging deeper into the intent of the proposal, it soon became clear that it wasn’t necessarily the unvarnished good news that the project’s supporters hoped for.
In order to leverage the network a user must purchase a Helium Hotspot. That requires an outlay of several hundred dollars. But with each hotspot for connecting IoT devices earning just $0.27 per day, according to the Helium Tracker, it is going to take some time before the outlay becomes profitable.
Therefore the economics are far from attractive and this likely is a reflection of the broader contention that it might not really make sense to run an IoT connectivity network on a blockchain.
So, as those with a deeper understanding of the
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