The recent update on Helium migration to the Solana network has generated some fascinating news in the crypto world. With the help of unique mining equipment, users of the blockchain-based wireless platform Helium can create their own IoT (Internet of Things) networks.
In the meantime, the open-source Solana blockchain network can process millions of transactions per second. The migration will impact HNT and SOL prices in the coming months.
The network finished its transfer to Solana before April 19. An announcement from Helium’s official Twitter account made the migration clear.
“The migration will be finished today. It began yesterday, April 18th, at 9 AM PT/4 PM UTC. As Helium’s network becomes more highly scalable, dependable, and functional, this ushers in a new dawn and age,” stated the company in the Tweet.
Explaining Helium Migration to Solana Network
Let’s first talk about the purpose of the network migration from Helium to Solana.
The “Helium Blockchain” was the name of the blockchain technology that the Helium network once employed. Helium, however, stated in March 2021 that they will be switching to the quicker and more effective Solana blockchain network.
As a result of this shift, the Helium network’s scalability is anticipated to rise. It will make transactions easier and more affordable for consumers.
How will the Migration Impact the Price of HNT and SOL?
When the Helium migration was first announced, HNT prices increased by almost 30%. SOL prices, however, have also significantly increased at the same time.
This is because users of HNT must trade their HNT tokens for SPL (Solana) tokens that are interoperable with the Solana network as part of this migration. As a result, there is a greater demand for SOL tokens, which raises the price of these tokens.
What Long-term Effects might this Movement have?
The move of the Helium network to Solana will have fascinating long-term effects. One of the key effects of the Helium migration is that it might encourage more people to accept and use Solana as a reliable and effective blockchain network.
This transition may also help Helium maintain its position as one of the top blockchain platforms in the wireless industry.
This migration came with some dangers. One of them is the technical risk or the chance that there will be glitches or issues with technology during the relocation process.
Additionally, this migration can have a detrimental effect on HNT and SOL’s price stability, which would be bad for investors.
Will the Change Affect SOL Price in Particular?
The values of native tokens and blockchain communities can benefit from ecosystem migrations and creative alliances, but HNT is the spotlight token right now, possibly more so than Solana, as it completes its migration.
The Helium migration to the Solana network could increase the adoption and usage of Solana and solidify Helium’s position as one of the leading blockchain platforms in the wireless world. However, the company is yet to address technical and price stability risks.