Helium (HNT) jumps 25%: 3 reasons to buy the token

Decentralized connection project Helium gains more than 20% in 24 hours following a successful $111 million token sale. Andreessen Horowitz is among the investors.

Helium (HNT) is undoubtedly among the top crypto stocks of August 10. According to CoinMarketCap, the native blockchain project token is showing 25% growth over the past 24 hours.

HNT thus ranks among the Top 3 most dynamic crypto-assets over the period, behind the usual Axie Infinity (AXS) and also Ravencoin (RVN). Helium is not a newcomer to the cryptocurrency market, though.

Reason #1: A $111 million token sale.

Its launch dates back to 2019. And its ambition is to revolutionize the wireless Internet and the Internet of Things. So the Helium token is currently experiencing a boom. The price of HNT is at a 3-month high.

The token is priced at $18.01. Its price was still below $10 on July 20. This growth, which reached up to 40% during the day of August 10, is based on several factors.

The main one is Helium’s successful fundraising. The project, through a sale of tokens, has indeed just raised 111 million dollars. Among the participants of this sale is a name that attracts attention: Andreessen Horowitz.

The investor is an investment heavyweight, including in the cryptocurrency world. At the end of June, the latter broke a record with the creation of a new fund with deep pockets: $2.2 billion.

Andreessen Horowitz also has an obvious nose for identifying promising startups and crypto projects. By investing in Helium, he is therefore sending a strong signal to investors, justifying the massive purchase of HNT tokens.

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Reason #2: Over 100,000 nodes on the blockchain

But if a business angel like Horowitz is interested in Helium, it’s also because of the size the project has reached today. On July 30, its creators announced that the network now has more than 100,000 nodes.

Since then, the pace has clearly accelerated. According to CoinTelegraph, the blockchain network had 117,377 active nodes as of August 10. These nodes are miners on the network, but also hotspots, wireless access points for end users.

And the demand for its hotspots is growing, which will support the growth of the nodes. This growth is further enhanced by the introduction of new types of hotspots, such as the “Light” hotspot and the “Data” hotspot.-only”.

Reason #3: HNT tokens in circulation are decreasing

Bitcoin investors know that scarcity is one of the factors driving up the price of BTC. By reducing supply, the price goes up. Helium also has a halving mechanism, suggesting a rise in the value of HNT over time.

A recent halving by Helium reduced the number of tokens issued each month from 5 million to 2.5 million. This halving coincides with an expansion of hotspot coverage and the number of partners. These are all levers for growth in the price of HNT.

The introduction of staking validators in July is also a factor. This also contributed to the positive pressure on the price. As a result, 21.32 million tokens, i.e. 23% of the supply, are no longer available for sale, but are blocked in staking.