Helium (HNT) gains 40% after a $ 111 million fundraiser and a milestone of 100,000 active nodes

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Among the 11,000+ cryptocurrencies listed, there are some projects that offer a revolutionary use case that can improve the way society works through the integration of blockchain technology.

One such project is Helium (HNT), a decentralized peer-to-peer 5G wireless network, which made headlines on Aug. 10 thanks to the successful completion of a token sale that raised $ 111 million from multiple investors, including Andreessen Horowitz, brought in.

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Data from Cointelegraph Markets Pro and TradingView show that after the fundraiser was announced, the HNT price rose 30% from a low of $ 14.03 to an intraday high of $ 18.14.

HNT / USDT 1-day chart. Source: TradingView

Three reasons the Helium Network has grown in strength are an ever-growing ecosystem of nodes covering the network, new companies and partners using the Helium network to track and store data, and the recent halving of the protocol.

The “People’s Network” reaches 100,000 nodes

One of the biggest factors adding to the legitimacy of the Helium network is its growing network of nodes, which topped 100,000 in July.

The rising demand for hotspots has resulted in more than 50 hotspot maker applications being submitted under the Helium Improvement Proposal (HIP) 19 process, suggesting that the number of hotspots could continue to grow for the foreseeable future.

The growth of the network is further supported by the introduction of new types of hotspots, including a “light” hotspot and a data-only hotspot.

Map of all hotspots in the helium network. Source: helium

As of August 10, 117,377 nodes are operating on the helium network, with the highest concentrations in the United States, Europe and China.

New data partners join the network

Another optimistic factor behind HNT’s recent move is the growing list of data partners using the low-cost network.

The latest company to join the Helium Network for its data management needs is Invoxia, a company that develops GPS trackers for individuals and businesses.

Some of the other companies using the Helium network to track all kinds of data from agricultural information to temperature readings are Salesforce, Conserv, Smart Mimic, and myDevices.

Helium network partner. Source: helium

As the number of operational nodes grows to provide wider network coverage for low-cost data tracking, more companies are likely to use the network.

Related: Cryptocurrency Mining Under Proposed US Policy Changes

Several factors reduce the circulating supply of HNT

A third development that has put positive pressure on the HNT price is the recent halving, which reduced HNT’s monthly output from 5 million to 2.5 million.

The halving of the HNT issued per day occurs at the same time as the admission of partners and the expansion of its coverage through the network. This has potential effects on increasing demand and leads to further price increases as network activity increases.

The introduction of staking validators on July 23rd is another protocol development that has resulted in positive pricing pressure on HNT.

Helium Network Validator Statistics. Source: helium

At the time of writing, more than 21.32 million HNTs – 23% of total supply – have been withdrawn and staked on the network.

The recent round of fundraising from venture capital giants like Andreessen Horowitz, Multicoin Capital and Alameda Research is further evidence that Helium is a fundamentally strong project that has real-world applications and the potential for further growth in the short and long term.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.