A popular crypto analyst says this 5G mobile hotspot altcoin will become one of the biggest cryptocurrencies in the future.
Coin Bureau’s server, nicknamed Guy, has 1,960,000 subscribers in a new YouTube update; A decentralized platform for Internet of Things (IoT) devices. Helium (HNT) He stated that one day it may surpass other competing cryptocurrencies.
“Helium may have tough times in 2022, but for me I have no doubt that HNT will eventually become the top cryptocurrency.”
Helium (HNT) is a decentralized network for the Internet of Things as mentioned above. The platform supports smart contracts and enterprise applications, allowing networked IoT devices to communicate and share data. Hotspot/Port Participants such as operators (peer-to-peer wireless network that allows low-power IoT devices to send data to and from the internet) and validators are rewarded with HNT tokens.
Guy says Helium’s recent rise in the rankings is not due to the altcoin’s aggressive tokenomics, but despite its aggressive tokenomics.
“With all these updates, announcements and developments, HNT has been a huge success. Although the altcoin is down more than 50 percent from its all-time high, it is still in a strong uptrend. This is actually somewhat surprising given the tokenomics of HNT…
HNT’s initial inflation is quite aggressive, with it going from 0 to 150 million in the first four years of its supply. If my calculations are correct, the circulating supply of HNT has increased by nearly 14 million in the last four months alone. Assuming the average price is $30, that’s $420 million of potential selling pressure.”
Stating that as a result of a recent interview with Helium COO, it was announced that most of the tokens are held by Helium investors instead of the team, the analyst says that the really interesting thing here is that one of the biggest investors of Helium is Multicoin Capital, which is insanely rising as a project on Helium, and therefore, he thinks that the platform does not sell much HNT, possibly not at all, adding:
“However, a significant portion of HNT’s newly minted supply has likely been sold, as the remaining 65 percent is distributed as rewards to validators and Helium hotspot operators. Surprisingly, the biggest buyers of HNT appear to be Helium validators and hotspot operators – nearly 1,000 validators have been added since October, each purchasing at least 10,000 HNT. If you do the math, that’s almost 10 million HNT, or 300 million dollars of buying pressure.”
Guy adds that the growing network has added hundreds of thousands of hotspots in recent months, creating more buying pressure for the mid-cap altcoin.
“Almost 400,000 hotspots have been added since October, meaning that each of them has bought and burned $40 worth of HNT. Again, if you do the math, that’s $16 million worth of buying pressure. That leaves nearly $100 million in undisclosed buyout pressure. I think this extraordinary amount comes from speculative investors etc holders.
These speculative investments have dwindled as the crypto market struggles with major downtrends. But it’s important to note that there are around 2.4 million hotspot devices waiting to connect to Helium’s network. This means that HNT is basically guaranteed to see a minimum of $100 million in buying pressure in the coming months, which is pretty much for an altcoin with a market cap of around $2 billion.”
Helium is trading at $24.75 at the time of writing, up over 6 percent over the last 24 hours.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.