$HNT Up 84% While Wider Market Struggles - Is Helium Decoupling?

Since migrating to the Solana network in 2023, Helium has enjoyed explosive growth. Boasting over 1M network hotspots, Helium has cemented its position as one of the crypto industry’s most widespread DePINs.

After an impressive year of expansion outside crypto markets, it appears that price action on Helium’s native token, $HNT, is finally starting to catch up.

Over a 30D time frame $HNT price has climbed 84%, rising from $4.51 to currently exchange hands at $8.34, based on Step Finance data. 

What’s driving $HNT’s surge?

Total Helium Mobile Subscribers Up 359% YTD

Helium’s total number of mobile subscribers has exploded throughout 2024. While the decentralized mobile network’s user acquisition was consistent during 2023, things took off to unprecedented levels in 2024.

From July 2023 until December 1st of the same year, Helium’s mobile network attracted a low, albeit steady, number of new subscribers. However, as attention returned to crypto markets, Helium’s number of total subscribers exploded throughout December.

The supply of Helium NFTs, used to track the number of cumulative subscribers, surged from 6,484 on December 1st to 23,868 by the end of the year as users clamored to join the network. But this 268% increase was just the beginning.

The proliferation of Helium’s user base has been meteoric throughout this year. With cumulative network subscribers currently sitting at 112,920 users, Helium’s subscriber count has risen 359% YTD and a staggering 2,246% on a rolling 1Y timeframe, based on Dune Analytics data.

While the data suggests expansive growth, it should also be noted that the figures track cumulative sign ups, rather than active users.

Helium Data Credit Consumption Approaches $1M

$HNT’s recent price action is likely due to increased demand for Helium Data Credits. An integral part of the Helium economy, Helium Data Credits enable users to transfer data throughout the Helium network.

Helium Data Credits are acquired through a novel burn-and-mint function. Network participants burn $HNT tokens in exchange for Data Credits, which are non-transferrable and can only be used by the account that created them.

According to Messari, Data Credit usage has been relatively consistent throughout 2024 and has increased significantly since last year. Based on the data, Messari analysts suggest that these sustained burns indicate the Helium network’s growing revenue.

The total value of data credits burned in a 24 hour period fluctuates between $8-10k, and is drawing close to $1M mark, based on Dune Analytics data.

As more users are drawn to the Helium network, demand for the Data Credits used to transfer data increases. Because network participants are required to burn $HNT tokens in exchange for Data Credits, increased Helium adoption is expected to generate sustainable $HNT buy pressure.

$HNT’s impressive price performance over the last 30 days directly contrasts with market-wide dynamics. In the same period that saw $HNT rise by over 80%, major cryptocurrencies like $SOL and $ETH both suffered drawdowns of 14.57% and 3.59% respectively.

Additionally, $HNT is also the best performing Top 100 crypto asset in both 7D and 30D timeframes, suggesting that Helium may have, at least periodically, decoupled from wider market dynamics.

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