A popular crypto analyst says this 5G mobile hotspot altcoin is bound to eventually become one of the biggest cryptocurrencies.
In a new YouTube update, pseudonymous Coin Bureau host Guy tells his 1,960,000 subscribers that Helium (HNT) will one day rise above the competition.
“Helium may have a hard time in 2022, but to me, it’s a no-brainer that HNT will eventually become a top cryptocurrency.”
Helium is a decentralized network for the Internet of Things (IoT). By supporting smart contracts and enterprise applications, Helium allows IoT devices connected to the network to communicate and share data. The HNT token rewards participants such as wireless hotspot operators and validators.
Guy says Helium’s recent rise through the rankings is despite the altcoin’s aggressive tokenomics, not because of them.
“All these updates, announcements, and developments have taken HNT on a tear. And though it’s fallen more than 50% from its all-time high, it’s still in a strong uptrend. This is actually somewhat surprising given HNT’s tokenomics…
The price of HNT’s first four years would go from 0 to 150 million, which would represent a fairly aggressive inflation rate. The number of HNTs in circulation has increased by 14 million in just four months, according to my calculation. If an average price of $30 is assumed, that would be $420 million in potential sale pressure.
A recent interview with Helium’s COO suggests that most of this newly minted HNT is held by Helium’s investors rather than the team as per the original distribution schedule… While it’s very unlikely all of this newly minted HNT will be sold, 35% of it will go to the holders of Helium’s 10,000 security tokens.
In fact, Multicoin Capital is one of Helium’s biggest investors, and it’s crazy enthusiastic about the project. Hence, it can be assumed that there is not too much HNT being sold. The remaining 65% went to redeemers and Helium operators as rewards, so the majority of HNT’s newly minted supply was likely sold.
As it turns out, Helium validators and hotspot operators have actually been buying the most HNT – almost 1,000 of these have been added since October, and each one has bought at least 10,000 HNT. Mathematically, that translates into just under 10 million HNT or $300 million in purchasing pressure.”
According to Guy, the expanding network has added hundreds of thousands of hotspots in recent months, which is creating even more buying pressure for the mid-cap altcoin.
“Almost 400,000 hotspots have been added since October, and that means each one bought and burned $40 worth of HNT. Again, if you do the math, that’s $16 million of buying pressure. This leaves around $100 million of buying pressure unaccounted for. I reckon this outstanding amount came from speculative investors and then some.
This speculative investing has declined as the crypto market has struggled. But – recall that there are still around 2.4 million hotspots devices waiting to connect to Helium’s network. This means HNT is basically guaranteed to see a minimum of $100 million of buying pressure in the coming months, which is a lot for an altcoin with a market cap of around $2 billion.”
Helium is currently trading for $23.46, up 4.96% on the day.
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