Helium (HNT) Deflates 15% After Proposed Transition To Solana

Helium Network, a Blockchain-powered wireless network, could soon see significant changes as key developers think of switching to Solana.

The proposal by Helium’s core developers to switch from their own blockchain network to Solana’s was codenamed “HIP 70.”

The value of HNT plummeted after developers announced a plan for migrating the network to Solana.

HIP 70’s proposal to migrate to Solana Blockchain aims to increase data transit, network coverage and dependability. Medium has recently written about network issues.

Solana and Helium switch to solve technical issues

The post suggests that less Proof of Coverage activity occurred due to the network’s massive scale. They believed the blockchain’s inefficiencies were to blame for the lower than usual volume of transactions.

Particularly, problems exist with data packet transfer and overall network load between blockchain and validator.

It was planned to solve or substantially reduce network problems.

A blog post from the Helium Foundation states:

“Thousands of developers across the world are working on apps that are only conceivable on Solana owing to its quick and cheap transactions, real-world NFT applications, business-to-business and business-to-consumer marketplaces, and more.”

The proposal’s goal was to build a network that was faster, safer, and more scalable, however the market rejected this idea. HNT, the main token for the project saw its value drop from $5.6778 at $4.648383 over a short period on August 31, 2017.

The token has never recovered since then. CoinMarketCap shows a rising volume of transactions. CoinGecko also displays this. A sell-off occurred between September 31st (the date of release) and September 2, (the time at which the volume was measured).

Cryptocurrency Consolidation:

Pessimistic feelings are common in the cryptocurrency market. HNT investors and traders have felt this way, with negative reactions.

It is an enormous consolidation in crypto, with the Helium move from Salana.

These changes aim to improve investor trust and to attract new users into their ecosystem. But, news about the merger of Solana and Helium did not stop market decline.

It will be interesting to see if traders will trust each other and attract new players into the ecosystem.

 Source: TradingView.com| Source: TradingView.com

Featured Image from Securities.io. Chart by TradingView.com

Get more Crypto News at CFX Magazine