Helium (HNT) Crypto Developers Want to Ditch Their Own Chain for Solana
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Nova Labs’ decision to change its name earlier this year furthered the Helium network’s ultimate goal of decentralization. By renouncing its Helium, Inc. branding, the development team could continue stepping back and allowing users to control the network. In doing so, Helium is making the world’s largest decentralized web of 5G hotspots.
This model doesn’t require the construction of expensive 5G towers, allowing Nova Labs to challenge giant internet service providers (ISPs) everywhere. That has gotten many investors’ attention, including many of these ISPs themselves and several venture capital firms. When Nova Labs hosted a fundraise in late February, it brought in $200 million in financing from the likes of a16z, Tiger Global and Seven Seven Six. Now, it’s an enterprise worth more than $1 billion.
Still, 2o22 hasn’t been kind to cryptocurrency — and Helium is no exception. The value of the HNT crypto has dropped drastically since January. Starting the year at over $38, HNT now trades for just under $5. Indeed, a solid business model still needs a bullish market to grow. This week, though, developers seem to be mulling over a way to change the tide.
Helium (HNT) Crypto Dips as Investors React to Developers’ Solana Proposal
Helium has gotten along just fine up to this point by doing things on its own terms. However, the market is in decline and HNT crypto prices are massively slipping. So, developers must take a step to plug the hole in the sinking ship. Today’s proposal isn’t seeing the best reception, however, with HNT stacking up losses.
As it stands today, Helium is located on its very own blockchain network. HNT is the native coin of this chain, fueling all of the transfers of data that occur within the network. But what if developers took the project elsewhere?
A new proposal by the Nova Labs team wants to uproot Helium from its native chain and relocate it to Solana. Solana is known as one of the fastest blockchain networks in the world; it processes thousands of transactions per second and can do so with fees that are only a fraction of a cent. With a market capitalization of nearly $11 billion, it’s one of the largest layer-1 projects, trailing only Ethereum (ETH-USD) and Cardano (ADA-USD).
Bringing the project to Solana would be great for throughput, that much is sure. Even with its penchant for outages, it’s one of the highest-performing networks Helium could jump to. But there would be something lost in doing so; having its own blockchain network means Helium is a truly decentralized project. Moving to Solana would mean complying with the blockchain and its future changes.
Giving that up in order to be faster doesn’t seems to resonate with HNT crypto holders. Right now, the coin is losing about 11% of its value as the market reacts to the news.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.
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