Key Insights
At the conclusion of the fourth quarter, the Helium Network experienced a significant surge, transferring over 576 terabytes of offloaded data from major mobile carriers in the United States, marking a remarkable 555% increase quarter-over-quarter (QoQ). By the end of Q4, Helium Mobile had attracted more than 124,000 users, all benefiting from unlimited talk and text services. The number of mobile hotspots increased by 14% QoQ, reaching a total of 24,800, while Internet of Things (IoT) hotspots rose by 20% to 32,900 since the migration to Solana. The network has also made strategic advancements, including the approval of Helium Improvement Proposal (HIP) 138, which seeks to unify the Helium Network under a single token (HNT), thereby optimizing its tokenomics. Additionally, Helium has reappeared on Grayscale’s list of the top 20 tokens to monitor for Q1 2025, highlighting its growing recognition by traditional finance institutions. Furthermore, in Q1 2025, Helium announced its expansion into Mexico via a partnership with Telefónica, extending services to over 2 million Movistar subscribers.
Primer
Helium (HNT) comprises a decentralized wireless network designed to connect low-power Internet of Things (IoT) devices with mobile services. Established in 2019, Helium launched its IoT network on a proprietary blockchain, allowing users to transmit data to and from the Internet, while miners earned HNT tokens for providing network coverage. Initially, the network focused solely on LoRaWAN connectivity for IoT devices. Following the approval of governance proposal HIP-70 a year later, Helium transitioned its blockchain operations to Solana, operating within a subDAO framework outlined in Helium Improvement Proposals (HIPs) 51, 52, and 53. The mobile subnetwork of Helium has gained traction through its telecom partnerships, with the carrier offloading program introduced in June 2024 acting as a significant growth catalyst. This initiative enables users of traditional telecom companies to utilize Helium hotspots in areas with adequate coverage. In its first full quarter, the program successfully offloaded over 88 terabytes of data to Helium Hotspots. The IoT network has seen diverse applications, such as flood detection in Porto, Portugal, and climate monitoring in museums. Throughout its existence, Nova Labs, the company behind Helium, has raised more than $360 million, with a recent funding round bringing in $200 million in March 2022. For a comprehensive overview of the Helium Network, refer to our Initiation of Coverage report.
Key Metrics
Performance Analysis
In the fourth quarter, the circulating market cap of HNT decreased by 20% QoQ, dropping from $1.3 billion to $1.0 billion. The price of HNT also fell by 22%, going from $7.54 to $5.88. As the primary token of the network, HNT is allocated from the Helium DAO to its subDAOs based on performance metrics and user engagement. HNT serves three primary purposes within the Helium Network:
1. Purchasing Data Credits (DCs) for access to subnetwork features: Users can burn HNT to obtain DCs through the Helium Wallet App, Helium CLI, or Data Credit Portal, with each DC valued at $0.00001. The quantity of DCs received from burning HNT is contingent on HNT’s current USD price.
2. Staking HNT to earn veHNT, which provides governance voting rights within the Helium DAO: As Helium functions as an overarching entity for its various subDAOs, it requires a governance framework. HNT holders can stake their tokens to participate in voting on HIPs and gain proportional voting power.
3. Offering redeemability for IoT or mobile hotspot hosts: This aspect may evolve with the implementation of HIP 138. While there is no explicit buyback mechanism for HNT, it is essential because burning HNT is the exclusive way to acquire DCs. This token emission design, known as burn and mint equilibrium, ensures that network usage correlates with the circulating supply of HNT. To incentivize miners to securely transmit data, HIP 20 introduced Net Emissions in August 2021, which continuously rewards the network with HNT based on the amount burned for DCs during each epoch. If less than the intended amount of HNT is burned, the system will re-mint and allocate the total HNT to the subnetwork’s treasury, with a fixed daily limit of 1,643.52 HNT.
Network Hotspots
During Q4, Helium Mobile’s hotspot count surged by 14% QoQ, increasing from 21,800 to 24,800. Helium Mobile’s pricing structure for unlimited plans is significantly lower than typical three-figure plans prevalent among American telecom providers. Additionally, users can further reduce costs through the Discovery Mapping feature, which rewards them with HNT for sharing their location. As of February 4, this feature transitioned to Cloud Points, with further details expected in the upcoming Q1 report. Helium Mobile’s appeal appears set to continue attracting users, irrespective of their familiarity with cryptocurrency. The network demonstrated its resilience during Hurricane Helene in North Carolina, where many residents lost power and water. Helium hotspots remained operational, providing essential 5G coverage, and the team distributed kits, including Starlink devices, for emergency connectivity. In the same quarter, IoT hotspots experienced a 20% QoQ growth, concluding with 33,000 hotspots onboarded since the Solana transition in early 2023, including several thousand sourced from gamers. Prior to the migration, the network boasted over 342,000 active hotspots, bringing the total to more than 375,000. When Helium initially launched its IoT service, hotspot owners could earn substantial rewards, sometimes amounting to thousands of dollars monthly. However, the Proof-of-Coverage (PoC) algorithm results in reduced rewards when more hotspots are present in the vicinity, leading to diminished earnings as more users joined the network. The adoption rate for IoT hotspots was rapid, yet demand has not kept pace with the influx of supply. Despite DCs being utilized to cover hotspot setup costs (e.g., setting a hotspot location costs $10 in DCs), the daily data transfer value of the burned DCs has remained relatively low, at a few hundred dollars. In summary, while Helium has successfully established the infrastructure for LoRaWAN connectivity, it has yet to generate sufficient demand for its services. The network’s website illustrates coverage provided by both hotspot types, primarily centered around major cities in North America, Europe, and Southeast Asia.
Data Credits
Data Credits (DCs) maintain a fixed price of $0.00001 and are utilized for data transfers and onboarding fees across IoT, Mobile, and future subnetworks. By the end of Q4, total DC burns reached $547,400, with average daily burns increasing by 32% QoQ, from $3,033 to $5,950. Of this total, $5,842 originated from the Mobile subDAO, accounting for 98% of the quarterly burns, while the IoT subDAO contributed $108. Since February 22, daily burns for the IoT subDAO have gradually increased, peaking at $136. The LoneStar organization led this category, averaging a daily burn of $40.13, representing a 37% market share.
Mobile Subscribers
Upon joining Helium Mobile, users receive a Mobile NFT in their wallet, which tracks their subscription status. In Q4, the subscriber base grew by 7% QoQ, reaching 124,800, up from 116,460. A notable increase occurred in January when Helium Mobile was made publicly available. However, it is essential to mention that some of these figures might be unverified, as they only account for NFT holders. Helium Mobile’s offerings appear to have gained greater traction compared to its nearest rival, World Mobile, which had 120,000 subscribers at the time of writing. In May 2024, Helium introduced Group Family Plans, providing unlimited talk, text, and data nationwide for just $20 per month. This pricing positions Helium Mobile as a more affordable alternative to World Mobile’s $30 plan for 5GB of data. Helium’s partnership with T-Mobile enhances its service by offering “Dynamic Coverage,” allowing users to connect to Helium hotspots when available and to T-Mobile’s outsourced coverage when hotspots are not accessible. Growth is anticipated to continue, especially with the recent collaboration on the Solana Mobile Seeker phone, which includes four months of complimentary Helium Mobile service. Additionally, in early February 2025, Helium launched a free tier offering 3GB of monthly data, with options to purchase additional data for $7.50 per GB. Their current offerings include three tiers:
– Zero: $0.00/month for 3GB of data
– Air: $15.00/month for 10GB of data
– Infinity: $30.00/month for 36GB of data
All plans allow users to earn cloud points based on their subscriptions. More details regarding these new plans will be available in the next quarterly report.
Carrier Offloading
Beginning June 18, Helium formed partnerships with established telecom companies to utilize Helium hotspots in areas where users have sufficient coverage. To date, Helium has collaborated with six carriers to offload user data. In Q4, the volume of offloaded data surged by 555%, reaching 576 terabytes, up from 88 terabytes. Carrier 2 reported the highest offload at 458 terabytes, representing a 521% increase. Carrier 1 followed with 118 terabytes offloaded, reflecting a remarkable 729% growth. Carrier 3, which joined the program on September 5, recorded 1.1 terabytes offloaded. This represents one of the most significant growth prospects within the Web3 sector. Helium Mobile aims to onboard additional carriers to the initiative, with real-time statistics available at Hellohelium.com.
Paid Traffic
Paid traffic refers to the volume of data sent through Helium Mobile Hotspots for which users have compensated. In Q4, the average daily mobile paid traffic rose by 99% QoQ, increasing to 11.7 terabytes from 5.9 terabytes. This growth brought the total paid traffic to 2,557 terabytes, a 73% increase from the previous quarter when 1,482 terabytes were recorded. As a primary revenue driver for the Helium network, this metric is projected to continue ascending as the protocol expands.
Qualitative Analysis
HNT Unification (HIP 138)
To enhance its tokenomics and align incentives throughout the network, Helium implemented Helium Improvement Proposal (HIP) 138, termed “Return to HNT”. This initiative aims to simplify the network’s token framework by reverting to HNT as the sole reward token, phasing out the IOT and MOBILE tokens. Key elements of HIP 138 include:
– Simplified Participation: Transitioning to a single token system minimizes complexity for users and developers, potentially reducing barriers for new participants.
– Redistribution of Emissions: This change reallocates 70% of HNT emissions to the MOBILE subnetwork and 30% to the IOT subnetwork, modifying reward structures for network participants.
– Token Conversion: Existing holders of IOT and MOBILE tokens can convert their holdings to HNT via the Helium Wallet App or other decentralized applications (dApps), easing the transition for current stakeholders. The successful implementation of HIP 138, which garnered 85.35% approval, underscores Helium’s commitment to community responsiveness and fostering a more effective ecosystem.
Phasing Out CBRS Radios (HIP 139)
In a notable technological shift, Helium approved HIP 139, which seeks to phase out Citizens Broadband Radio Service (CBRS) radios from its network. This decision underscores Helium’s aim to optimize its infrastructure and align with future growth strategies. Key aspects of HIP 139 include:
– Gradual Phase-Out: The proposal establishes a timeline for discontinuing rewards for CBRS radios, allowing for a managed transition.
– Support for Affected Users: Nova Labs has pledged to assist CBRS owners by re-flashing their devices to factory firmware and providing a swap program for free Wi-Fi Hotspots, showcasing Helium’s commitment to its community amid technological shifts.
– Focus on Wi-Fi Technology: This transition indicates a strategic pivot toward Wi-Fi technology as a core component of Helium’s future infrastructure. The high approval rating of 85.20% for HIP 139 reflects strong community alignment with this technological direction.
Smart City Initiatives
Helium’s foray into smart city applications signifies an important expansion beyond basic IoT connectivity. The network has made strides in supporting critical infrastructure monitoring and public safety initiatives, with notable projects such as:
– Wildfire Detection: Helium partnered with Pacific Gas and Electric in the U.S. to implement wildfire detection systems, leveraging its decentralized network for enhanced early warning capabilities, particularly during the LA wildfires.
– Flood Monitoring: Collaborating with the U.S. Geological Survey to develop flood detection systems illustrates Helium’s potential in environmental monitoring and disaster prevention. These initiatives highlight the flexibility of Helium’s network and its ability to address societal challenges through decentralized technology.
Integration with Other DePIN Projects
Helium’s growing integration with other projects in the Decentralized Physical Infrastructure Networks (DePIN) sector further exemplifies its commitment to establishing a robust and interconnected ecosystem. Collaborations demonstrate Helium’s role in fostering a cohesive DePIN landscape:
– DIMO Network Integration: DIMO Network announced its integration with Moken Market’s DePIN tracker, enabling users to manage multiple DePIN projects, including Helium hotspots, in one unified platform, enhancing user experience and interoperability.
– Hivemapper Collaboration: Although not a direct partnership, Hivemapper’s ambition to potentially triple Helium’s subscriber base indicates a competitive yet collaborative environment within the DePIN realm, potentially driving innovation and growth across the sector. These integrations and collaborations contribute to creating a more interconnected DePIN ecosystem, positioning Helium as a central player.
Institutional Interest
The fourth quarter of 2024 witnessed heightened institutional interest in Helium and the broader DePIN sector:
– Grayscale Inclusion: Helium made a return to Grayscale’s list of the top 20 tokens to watch for Q1 2025, as reported by The Block. Grayscale is a well-known cryptocurrency asset management firm.
– Venture Capital Interest: The DePIN sector, including Helium, garnered attention from venture capital firms, with Borderless Capital successfully raising $100 million for its third DePIN fund, according to The Block.
– Harvard Business School Case Study: In November, Harvard Business School incorporated a case study on Helium into its strategy curriculum.
– Coinbase 50 Index Inclusion: In November, Coinbase launched COIN50, a benchmark of the top 50 eligible digital assets, enabling institutional and Coinbase Advanced users to trade the index via a COIN50 perpetual future on Coinbase’s international exchange.
– Traditional Telecom Integration: Nova Labs, associated with Helium, tested hotspots in collaboration with Telefonica in Mexico, exemplifying the interaction between decentralized networks and major telecom companies.
– Ameriband Partnership: Announced in October, Ameriband’s network of over 100,000 Data-Only Hotspots has been integrated into the Helium Network, enhancing coverage across the U.S.
– TIP OpenLAN Case Study: In October, the Telecom Infra Project conducted a case study on the Helium Network, focusing on Helium’s utilization of OpenWiFi and the scaling impact brought about by the carrier offloading program.
Awards Won in Q4
Closing Summary
The fourth quarter of 2024 marked a significant phase of growth, strategic refinement, and broadening opportunities for the Helium Network. As a participant in the Decentralized Physical Infrastructure Networks (DePIN) sector, Helium showcased its ability to innovate, adapt, and facilitate real-world adoption of blockchain technology. The network’s expansion to over 350,000 hotspots across more than 80 countries, along with growth in data offloading and user engagement, has solidified its position within the decentralized infrastructure domain. Helium’s strategic initiatives during this quarter, including the unification of its token structure under HNT and the discontinuation of CBRS radios, demonstrated its commitment to building a more efficient and user-friendly ecosystem. These actions, supported by community governance and engagement, have paved the way for Helium’s ongoing evolution within the dynamic DePIN landscape. The network’s exploration into diverse applications, from smart city projects to cross-chain collaborations, showcases its versatility and potential to tackle real-world challenges through decentralized technology.
