The Helium network has deflated after its proposed switch to Solana.
The proposal by Helium’s core developers to switch from their blockchain network to Solana’s was codenamed “HIP 70.” This has made the value of HNT plummet.
The HIP 70 proposal to move to the Solana blockchain aims to improve data transit, network coverage, and dependability. Some of the network issues have been described in a recent post on Medium.
The post suggests that less Proof of Coverage activity occurred due to the network’s massive scale. They believed the blockchain’s inefficiencies were to blame for the lower-than-usual volume of transactions.
In particular, there are problems with data packet transfers and the overall network load between the blockchain and the validator.
The projected network-wide move was intended to resolve or significantly reduce the issues currently plaguing the network.
The proposal’s goal was to build a network that was faster, safer, and more scalable, however, the market rejected this idea. The primary token of the project, HNT, saw its price drop from $5.6778 to $4.6483 in the period of a few hours on August 31.
Since then, the token has not been able to recover. A rise in the volume of transactions is shown on CoinMarketCap and CoinGecko. Lower prices and higher volume indicate a sell-off occurred between August 31 (the day of the release) and September 2 (the time of writing).