Helium price rally short-lived as HNT fails to sustain sharp gains

The cryptocurrency sector continues to suffer the aftershocks caused by the collapse of FTX, once one of the largest crypto exchanges in the world. However, despite the chaos, some digital assets manage to stand out, including Helium (HNT), even if temporarily.

As it happens, Helium had recorded dramatic increases during the day, at one point even leading the top 100 in daily gains as it reached the price of $2.05, a change of 20.57% on the day, before slowing down its growth and stabilizing below the $2 mark.

At press time, the token was changing hands at the price of $1.96, which represents an increase of 4.32% in the past 24 hours, as well as 0.6% across the previous seven days, according to data retrieved by Finbold on December 22.

Volume and market cap increases

Over the past day, HNT’s 24-hour trading volume increased 65.74%, rising from $7.62 million to $22.24 million, as its market capitalization saw an influx of $12.43 million, growing from $253.95 million to $266.38 million at press time.

These advances in price had temporarily positioned Helium as the leader among the top 100 cryptocurrencies in terms of daily gains, followed by Neutrino USD (USDN), Terra Classic (LUNC), Dogecoin (DOGE), Internet Computer (ICP), with HNT being the only one with double-digit gains.

Why is Helium gaining?

Meanwhile, the sharp increases in the price of Helium arrive one week after the decentralized peer-to-peer 5G wireless network, which uses an innovative hotspot-powered infrastructure for the Internet of Things (IoT), announced its migration to the Solana (SOL) blockchain.

Helium Foundation’s COO Scott Sigel commented that, despite the crypto crisis, the Helium Network remains “strong, fully functional, and continues to grow through changing market conditions. The network will complete its migration to the Solana blockchain in Q1, which will bring improvements to uptime, speed, and overall scalability.”

Earlier, T-Mobile signed an exclusive deal with Helium developer Nova Labs, allowing its “crypto carrier” Helium Mobile to leverage T-Mobile’s 5G macro network and Nova Labs’ CBRS (Citizens Broadband Radio Service) network, which is set to have a beta launch in early 2023.

That said, the founders and insiders at Helium were earlier accused of profiting from the project at the expense of those who invested in the platform, as they were linked to crypto wallets that mined at least 3.5 million of all HNT tokens in the first three months of the platform’s launch.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.