Helium (HNT) Adoption is Growing Exponentially, But the Network Could Be Due for a Correction

Helium is one of the crypto-projects that are championing decentralized physical infrastructure (DePIN). However, despite being a pioneer in its segment, the network's growth has for a long time remained constrained by the pace of adoption.

Helium is a decentralized wireless network that has been championing the concept of DePIN (decentralized physical infrastructure). Despite being a pioneer in its segment, the network’s growth has been limited by the pace of adoption.

However, recent reports indicate that Helium adoption is now accelerating, particularly evident in its user growth figures. According to the latest data, the network has seen an increasing adoption rate over the last 12 months.

Source: Dune.com

Helium’s subscriber count has also been growing exponentially. 12 months ago, the network had less than 1,000 subscribers in the unlimited plan. In contrast, Helium now boasts over 108,000 subscribers on its unlimited plan – A sign that it is well into its robust growth phase.

Moreover, healthy mobile pay bill pre-payments indicate substantial revenue generation and strong customer retention for Helium.

Source: Dune.com

Offload subscribers to boost Helium’s growth

Helium has been pursuing growth by bootstrapping existing carriers. Its new total carrier offload service enables existing mobile carriers to utilize Helium’s mobile hotspots to decentralize their offerings. This approach provides an opportunity for Helium to rapidly scale up in terms of adoption.

The network is already said to be testing the feature with 2 carriers.

Helium’s physical infrastructure has also been expanding rapidly. On its official website, the network revealed that it has deployed nearly 16,000 hotspots to date.

Source: Hellohelium.com

The hotspot data shows a strong correlation with the subscriber count – A confirmation that the network has been scaling to accommodate more users.

Alternatively, one could also view it as an indicator that the network’s expanding infrastructure has been bringing more users online.

Impact on HNT’s performance

Helium’s native token HNT has been on an overall bullish trajectory since the second week of July. This indicates a recovery after a harsh bearish period that saw it fall from its 2024 high of $11.06 – A 74% discount to the bottom range just below the $3 price level.

At the time of writing, HNT was valued at $6.74, a 133% recovery from its bottom range.

Source: TradingView

However, our analysis suggests that HNT might be facing some sell pressure. This is because its price was not only overbought but, it also showed price-RSI divergence. The RSI had a lower high compared to the previous peak towards the end of June, while the price is higher now than it was in its June peak.

While a bearish pullback might be on the cards, it remains to be seen whether it will be an intense one or if it can hold at its current price, considering that the new found pace of growth may be encouraging HNT holders to hold on for longer in anticipation of higher prices.