20% Increase in IoT Hotspots
Helium’s market landscape experienced significant changes in the fourth quarter, with the HNT token witnessing a 20% decline in its circulating market capitalization, dipping from $1.3 billion to $1.0 billion. The price of HNT reflected this downturn, falling by 22% from $7.54 to $5.88. Despite the setbacks in the token’s value, Helium’s network showcased resilience by continuing to expand its infrastructure and user base.
Growth in Hotspot Adoption
According to a report by Messari, Helium Mobile’s hotspots increased by 14% quarter-over-quarter, advancing to 24,800 from 21,800. Helium Mobile’s offerings, notably its unlimited plans, remain considerably more economical compared to the typical pricing of US telecom services. The service also rolled out the Discovery Mapping feature, which rewards users with HNT tokens for sharing location data. However, as of February 4, these incentives transitioned to Cloud Points, a change anticipated to be elaborated upon in the forthcoming Q1 report.
Helium Mobile’s utility was put to the test during Hurricane Helene in North Carolina at the end of September. Data revealed that while many residents were left without power and clean water, Helium hotspots maintained their functionality, supplying 5G coverage in the affected areas. The Helium team also took initiative, distributing emergency kits—including Starlink devices—to assist those in need.
Simultaneously, the IoT network witnessed a robust expansion, with a 20% increase in hotspots recorded in Q4. Following the network’s migration to Solana earlier this year, an additional 33,000 hotspots were integrated, with thousands contributed by the gaming community. This inflates the total hotspot count to beyond 375,000, up from 342,000 before the migration. Though this rapid growth in infrastructure is promising, demand has yet to catch up, according to insights from data analytics firms.
While Data Credits (DCs) enable onboarding fees—such as the $10 requirement for registering a hotspot—actual data transfer usage remains disappointingly low, with daily DC burns confined to just a few hundred dollars. This indicates that although Helium has established a solid LoRaWAN connectivity framework, there is a noticeable lack of significant network demand.
Past Controversies
Helium has been no stranger to controversy, particularly surrounding issues of token distribution. Allegations have emerged that the founders and their associates hoarded a substantial portion of early token rewards. A report from CryptoPotato in 2022 indicated that insiders mined millions of HNT tokens, collectively worth approximately $250 million at its peak, while the broader public was left with a small fraction of that wealth.
Additionally, Helium faced backlash over claims of partnerships with major companies like Lime and Salesforce. Initially advertising that Lime employed its services for geolocation of e-scooters, the narrative was challenged when Lime’s Global Communications Director clarified that the engagement had been limited to a 2019 test. This led Helium to adjust its marketing materials after Salesforce also denied any formal relationship, resulting in the removal of their logos from Helium’s promotional content.
Helium’s journey, marked by both growth and controversy, continues to unfold as it navigates an evolving market landscape while striving to validate its innovative potential in the telecommunications sector.
