IoT growth, partnerships and the ease of mining lead to a higher price for helium (HNT)

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Helium (HNT) is a decentralized blockchain network that allows wireless devices with low power consumption to communicate with each other and send data over the node network.

Since July 2020, Helium’s native token (HNT) has increased its value 550% from $ 0.35 to a 2021 high of $ 2.25 on Jan 25 as the fundamentals for the network continue to improve.

Three reasons HNT is poised for further growth are the increasing size and coverage of its network of nodes, the ease with which a passive income node can be managed, and the growing number of partnerships that Helium has brokered.

HNT / USDT 4 hour chart. Source: TradingView

A growing network of nodes

Helium was founded in 2013 by Amir Haleem, Shawn Fanning and Sean Carey with the aim of creating a “People’s Network” specifically designed to improve the communication capabilities of IoT (Wireless Internet of Things) devices.

Since the main network was launched in July 2019, the number of active nodes and companies using the helium blockchain for IoT data transfers has steadily increased.

Data from the Helium website shows there were 3,271 active hotspots at the end of April 2020. There were 17,178 active nodes as of January 26, an increase of 525% over the past 9 months.

Helium network coverage map. Source: helium

The demand for hotspots was so great that Helium stopped selling units in North America and Europe, prompting several companies to develop compatible devices such as the RAK hotspot miner or EasyLinkIn’s Bobcat miner.

The emergence of several companies offering hardware compatible with the Helium network bodes well for the company’s continued expansion.

Simple node operation for passive income

Setting up a cryptocurrency mining rig or operation is not an easy task. The technical know-how is high and the funds required to develop new energy efficient mining machines quickly price the average miner out.

HNT miners only need an internet connection, a smartphone and a hotspot miner. The hotspots are a combination of a wireless gateway and a blockchain mining device that allows users to access mines and earn rewards in the form of the native HNT token. The ease of mining HNT is likely one of the driving forces behind the introduction of the network.

New partners join the network

Aside from price promotions, dealing with the actual project and its blockchain is fundamental to the success of a blockchain network. The cryptocurrency sector is full of “ghost chains” that do little or no activity to justify the value of their tokens. Aside from bot-driven trading, many of the projects are illiquid.

A quick look through Helium’s Twitter feed shows that engagement in the network is growing steadily as new partners are added to the network every week.

Recent partnerships include Nobel Systems, a company that hosts a parking app that monitors parking availability, and Airly, a company that operates a system that monitors global air quality. Helium also partnered with NOWi, a company that operates a network of sensors that notify owners when leaks and abnormal water usage are detected.

The use of IoT and smart devices is expected to increase in 2021. Helium’s numerous new partnerships and HNT’s strong performance show that the project is well positioned to capitalize on this trend.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.