Decoding the Decentralized Wireless Network: Helium

Asset Spotlight: 

Helium is a decentralized wireless network for IoT devices built on the Solana blockchain. It enables individuals to deploy their devices, which are called hotspots, for communication and data sharing. In turn, the device owners are rewarded with the native token HNT. Helium was founded in 2013, and the project officially launched its mainnet in 2019.  

Market Performance: 

The HNT token currently trades at $7.34, 86% down from its all-time high of $54.88, achieved in November 2021. It is up 6% for the year. The total supply of HNT is 223 million, out of which 168 million are in circulation. The project's current market capitalization is $1.2 billion, and the last 24-hour trading volume is $20 million.  

Onchain Metrics: 

Helium today has about 20,800 daily active addresses (DAA), and the network processes about 63,000 transactions every day. The all-time high for DAA was 55,000 in February 2024 and 331,000 for daily transactions in May 2023. The network generates $6,600 in fees daily; the highest single-day fee was $18,900 in March 2024.  

The Helium network generates fees in several ways, such as Proof of Coverage (PoC), Data Transfer, Token Transactions, IoT, and Mobile Services. The network witnessed substantial growth in the first few months of 2024, fueled by the expansion of Helium mobile with unlimited 5G plans and strategic partnerships with Google and others.   

Sector Overview: 

Helium is categorized as a Decentralized Physical Infrastructure Network (DePIN). It is one of the top five projects in this category by market capitalization. Others include Filecoin (FIL), Render (RENDER), Arweave (AR), and The Graph (GRT). The DePIN sector has a market capitalization of over $19 billion today, with over 650 active projects across different blockchain networks.  

Outlook: 

Helium’s strategic moves into mobile services and the right partnerships have helped it validate its technology and establish itself as a decentralized wireless connectivity frontrunner. The migration to the Solana blockchain is helping with scalability challenges and creating an opportunity to integrate further with other networks. This could potentially help Helium expand its ecosystem beyond existing services. There is tough competition from traditional telecom giants, but Helium is well-poised to be a leader in the DePIN sector.