Helium's HNT Faces Significant Decline Amidst Low On-Chain Activity

Helium’s native token, HNT, has experienced a dramatic decline of 79% over the past three months, dropping from a local high of $10 to a recent low of $2.1. As of now, HNT is trading at $2.59, reflecting a 14.07% decrease in the last 24 hours. The token’s performance has been consistently poor, with weekly and monthly declines of 24.17% and 24.45%, respectively. This downward trend raises questions about the underlying factors contributing to Helium’s struggles in the market.
One of the primary reasons for Helium’s decline is the significant drop in on-chain activity, which has reached a yearly low. Daily active addresses have plummeted from 19.1k to just 4.9k, indicating a severe lack of demand and adoption for HNT. This reduction in active users suggests that either new investors are hesitant to engage with the network, or existing users are closing their accounts. Additionally, daily transactions have also decreased to a yearly low of 18k, further confirming the bearish sentiment in the market as traders adopt a risk-off approach during this downturn.
The combination of declining demand and reduced market activity has resulted in a lower market cap for Helium, validating the ongoing struggles faced by the altcoin. With HNT recently hitting a yearly low, the outlook appears grim, as sellers dominate the market. If the current trend continues, HNT could potentially drop below $2 for the first time since November 2023. However, if buyers seize the opportunity to accumulate during this dip, there is a possibility for a rebound, allowing HNT to reclaim the $3.4 mark, signaling a potential bottom for the token.
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