- Helium Network has proposed 27 March for its migration to the Solana network.
- The HNT token, alongside other assets, will also migrate to the new network.
In a blog post dated 17 February, Helium Network [HNT] revealed that its migration to the Solana [SOL] network would begin on 27 March. As a result, all wallets, Hotspots, and the press time state of the Helium Network will be updated. A 24-hour period of changeover time will begin at around 1500 UTC / 10:00 AM ET on that day.
Read Helium Network’s [HNT] Price Prediction 2023-24
The community’s success with HIP-70 in 2022 and the introduction of many solutions to Helium network scalability made the transition to Solana possible. In addition, moving Proof-of-Coverage and Data Transfer processing to Oracles, with the switch to the Solana blockchain, frees up significant resources for scaling.
How did its native token, HNT, react to the news?
HNT on a daily timeframe
There was a strong response to the latest statement, as evidenced by the price movement of HNT. As of 17 February, at the close of trading, the token had increased in value by 10.78%. This was the second-highest growth in February overall and the third-highest growth in the year. At the time of writing, it sold at about $2.80, up about 0.5%.
The token had support from the short Moving Average (yellow line), which was visible beneath the price fluctuation. As of the time of writing, the support was around $2.5. With prices near $3.8, the long Moving Average (blue line) acted as resistance.
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However, the volume of the price reacted differently. According to the Santiment’s volume statistic, there hasn’t been a significant surge in the metric. The volume has been low for some time, sitting at 5.91 million at press time.
The completed migration will make HNT natively interoperable with additional platforms in the Solana ecosystem, thus expanding its utility. However, will this exposure increase the volume of the token and consequently its value? Only time will tell.
Following the recent news that the popular cryptocurrency token, Helium (HNT) would be migrating to the Solana blockchain, the market reacted intensely. This move comes as part of a larger effort by the Helium team to make their decentralized finance (DeFi) protocols readily available and ensure that their coin becomes increasingly accessible.
Helium is a platform token utilized by the Helium network, which is aiming to create a global IoT network. The network offers users a distributed and secure identities feature, enabling them to more easily use dapps that are built on the Helium blockchain.
In response to the announcement, the Helium team made clear that their decision to migrate to Solana was motivated by the blockchain’s capability to scale and process transactions more quickly than Ethereum. Additionally, the design philosophy of the two blockchains are complimentary, allowing for a smooth transition from Ethereum to Solana.
This transition has caused a sharp outburst in the price of HNT across numerous cryptocurrency exchanges, which indicates that the investors welcomed this move with enthusiasm. This could also be attributed to the fact that Ethereum’s high gas fees have made it difficult for DeFi protocols to take off on the blockchain. By making the transition to Solana, HNT could be well on its way to becoming one of the biggest decentralized finance protocols of the future.
Overall, the market’s reaction to the news of Helium’s migration to Solana continues to show the importance of DeFi and the potential of the Helium network. It will be interesting to see how the migration affects the long-term trajectory of HNT, and along with it, the entire DeFi space.