Helium’s native token HNT has been bloating in value for the reason that begin of the yr. In keeping with CoinGecko, the token is up greater than 36% prior to now week. Which means the token is prepared for extra good points within the coming days or even weeks as Helium merges with the Solana blockchain.
In keeping with Helium’s tweet again on December sixteenth, the 2 blockchains will merge within the 1st quarter of this yr. Will HNT proceed its bullishness post-merge?
The Merge & Exterior Developments On Helium
The Helium-Solana consolidation occasion is not only the one factor marked for buyers and merchants to observe. Nova Labs, previously generally known as Helium, and T-Cell announced a partnership again on September 20 final yr.
Helium is migrating onto the @Solana blockchain ~Q1 2023. Do you know @Helium Hotspots will every be represented by an NFT on Solana—creating virtually 1 million new Solana NFTs throughout the Helium #MintORama?
Should you missed our Transition AMA on Dec. 1st, right here’s a recap. 🧵 👇— Helium Basis (@HeliumFndn) December 15, 2022
In keeping with the press launch, the partnership would allow Helium Community customers to make use of the T-Cell 5G community alongside with Helium’s personal native 5G community. This could entitle customers to opt-in of the MOBILE rewards system.
This method rewards customers for sharing knowledge about Helium’s lifeless spots location in america which might assist them save on mobile knowledge plans. The general public beta launch of the rewards system will launch throughout the 1st quarter this yr.
Picture: Securities.io
Helium and Solana’s merge event will even occur on the identical timeframe. The improve would allow the ecosystem to provide extra again to hotspot house owners as 2 million HNT could be allotted yearly for rewards.
It could additionally make the community sooner and dependable because the proof-of-coverage system of Helium will get buffed.
What Does This Imply For HNT?
As of writing, the token confronted a rejection at $3.4 with the bears making an attempt to achieve the $2.8 assist line. The primary few months of this yr might arrange HNT for better heights because the rewards system and the merge of Solana and Helium occurs at practically the identical time.
With the token’s value at $2.9, HNT is anticipated to face challenges within the quick to medium time period as volatility enters the market. If the token’s present assist is damaged, buyers and merchants may need a tough time to revert again to its present value level.
Crypto complete market cap at $932 million on the every day chart | Chart: TradingView.com
Nonetheless, with the onset of its merge with Solana and the rewards system public beta launch, we would see much less ache within the medium to long run. Buyers and merchants must also watch the token’s excessive correlation with Bitcoin as this might affect the worth of HNT strongly.
For now, buyers and merchants are secure to carry HNT as this rejection may very well be rapidly handled with exterior bullish prospects.
Featured picture: Crestline
