The native token Helium HNT has been inflated in value since the beginning of the year. according to CoinGecko, the token is up more than 36% in the past week. This means the token is poised to earn more in the coming days or weeks as Helium joins the Solana blockchain.
By Helium tweet back on December 16, the two blockchains will merge in the 1st quarter of this year. Will HNT continue to be bullish after the merger?
Mergers & External Developments in Helium
The Helium-Solana consolidation event is not the only one marked for investors and traders. Nova Labs, formerly known as Helium, and T-Mobile declare partnership back on September 20 last year.
Helium migrates to @Solana blockchain ~Q1 2023. Did you know @Helium Hotspots will each be represented by NFTs in Solana—creating nearly 1 million new Solana NFTs during Helium. #MintOrama?
If you missed the Transition AMA on December 1st, here’s a recap. 🧵 👇– Helium Foundation (@HeliumFndn) December 15, 2022
According to a press release, the partnership will allow Helium Network users to use T-Mobile’s 5G network alongside Helium’s own native 5G network. This will give the user the right to choose the MOBILE reward system.
This system rewards users for sharing data about the location of Helium blackout points in the United States which will help them save on their mobile data plans. The public beta launch of the reward system will be launched during the 1st quarter of this year.
Image: Securities.io
Helium and Solana joining event will also happen at the same time. The upgrade will allow the ecosystem to give back more to hotspot owners as 2 million HNT will be allocated annually for rewards.
It will also make the network faster and more reliable as the proof-of-range Helium system will be buffed.
What Does This Mean For HNT?
At the time of writing, the token is facing resistance at $3.4 with bears trying to reach the $2.8 support line. The first few months of this year could set up HNT to go higher because of the reward system and the merger of Solana and Helium happening at the same time.
With the token price at $2.9, HNT is expected to face challenges in the short to medium term as volatility enters the market. If the token’s current support is broken, investors and traders may find it difficult to return to the current price point.
Crypto total market cap at $932 million on the daily chart | Chart: TradingView.com
However, with the startup joining Solana and the rewards system going into public beta, we may never get sick of it in the medium to long term. Investors and traders should also watch the token’s high correlation with Bitcoin as this can greatly affect the price of HNT.
For now, investors and traders are safe to hold HNT as this rejection can be quickly dealt with by the external bullish outlook.
Featured image: Crestline