Helium (HNT) Jumps 5% Following halving Event

Blockchain-based network for IoT devices Helium (HNT) has jumped over 5% in the last 24 hours, despite the general bearish trend in the market. It has also gained over 24% in the last seven days, Coin Market Cap data shows. 

Unlike most crypto assets, the month of July was favorable for HNT, as it has been in a steady upward move since early in the month, probably because investors were in anticipation of the halving on 1 August.

HNT price jumps following halving

Helium uses nodes as hotspots to connect wireless devices to its network. Because there is a growing demand for the internet of things, the Helium network is likely to become more relevant. One important event in the project’s event is the halving.

Just like for Bitcoin or other proof-of-work projects, the halving for Helium leads to reducing the minting rate by half. This is intended to make the asset more scarce over time, and ultimately cause an increase in the value. 

It’s #Helium halving day! As stated in community-approved HIP20, halvings occur every two years to ensure $HNT scarcity and make Helium more accessible to a broader group,” the team wrote on the official Twitter handle.

Also just like Bitcoin, the halving of Helium may have triggered a price gain in the last 24 hours, and may have been the reason behind the steady gains in July. The halving also ensures a fixed maximum supply for HNT to:

To facilitate a strong economic model, and preserves coverage incentives as the network continues to expand.

Will the rally be sustained?

Helium may have been in an upward trend on its own despite the bear market. The effect of the halving may be seen for a while after the event. However, whether the price will continue to rally is a different question, 

This is especially uncertain because of the predominantly bearish sentiment in the market. Although some assets have managed to stay afloat, many have given way to the bearish market pressure.