State of Helium Q4 2024

Key Insights

• At the end of Q4, the Helium Network transferred over 576 TB of Offloaded Data from major mobile carriers in the US, a 555% QoQ increase.
• By the end of Q4, over 124,000 users have subscribed to Helium Mobile for unlimited talk and text messaging.
• Mobile hotspots grew by 14% QoQ to 24,800, and IoT hotspots grew by 20% to 32,900 (since Solana migration).
• The network implemented strategic changes, including the approval of HIP 138, which aims to unify the Helium Network under a single token (HNT), streamlining its tokenomics.
• Helium was reintroduced to Grayscale's top 20 tokens to watch for Q1 2025, indicating attention from traditional finance entities.
• In Q1’25, Helium announced its expansion in Mexico through its partnership with Telefónica, bringing the Helium Network to over 2 million Movistar subscribers.

Primer

Helium (HNT) is a decentralized wireless network that connects low-power Internet of Things (IoT) devices and mobile services. Launching in 2019, Helium launched an IoT network on its purpose-built blockchain. Users could send data to and from the Internet, and protocol miners were rewarded with HNT tokens for providing wireless network coverage. Initially, the network only offered LoRaWAN connectivity to IoT devices.

After the approval of a governance proposal (HIP-70) over a year later, it migrated blockchain operations to Solana. Helium operates on a subDAO framework laid out in Helium Improvement Proposals (HIPs) 51, 52, and 53. Helium’s mobile subnetwork has gained traction through Helium Mobile's telecom carrier. Starting in June 2024, Helium’s carrier offloading program has been a primary growth driver. The program allows users of legacy telecom companies to use Helium hotspots when in areas of sufficient coverage. In its first full quarter, the program offloaded over 88 TB of data to Helium Hotspots. Helium’s IoT network has found traction in various use cases, with some notable examples including its use in flood detection in Porto, Portugal, and in monitoring humidity and temperature for museums. Throughout its lifetime, Nova Labs, Helium’s founding operating company, has raised over $360 million for Helium, with its most recent raise attracting $200 million of investment in March 2022. For a full primer on the Helium Network, refer to our Initiation of Coverage report.

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Key MetricsPerformance AnalysisFinancial

In Q4, HNT’s circulating market cap decreased by 20% QoQ to $1.0 billion from $1.3 billion. HNT’s price fell by 22% to $5.88 from $7.54. HNT is the network’s primary token. It’s distributed from the Helium DAO to subDAOs based on performance and engagement (i.e., utility score).

There are three main functionalities for the Helium Network token (HNT):

1. Buy Data Credits (DCs) to access subnetwork functionalities: HNT can be burnt to receive Data Credits through the Helium Wallet App, Helium CLI, or Data Credit Portal. The value of a DC is fixed at $0.00001. The amount of DC that users will receive from burning HNT will be determined by the current price of HNT in USD.
2. Stake to receive veHNT and gain governance votes for the Helium DAO: Since the Helium Network is acting as an overarching structure for these networks (i.e., subDAOs) that are created, it needs its own governance mechanism. Members of the DAO (i.e., owners of HNT) can participate in the voting processes for the HIPs by staking their HNT and receiving proportional voting power.
3. Offer redeemability for IOT or MOBILE hotspot hosts. This is subject to change with the implementation of HIP 138.

There is no specified buyback for HNT, but it is necessary because the only way to buy DCs is to burn HNT. This token emission design, called burn and mint equilibrium, ensures that the network usage is aligned with the amount of HNT in circulation. To ensure that miners are always incentivized to transmit data securely through the network, HIP 20 introduced Net Emissions in August 2021. This mechanism is designed to give the network HNT rewards in perpetuity by monitoring the number of HNT burned for DC in a given epoch and adding the number of HNT to mint that epoch. If less than the planned amount of HNT is burnt for DCs on a given day, this mechanism will re-mint and distribute the total amount of HNT into the subnetwork’s treasury. The fixed net emissions daily epoch cap is 1,643.52 HNT.

NetworkHotspots

In Q4, Helium Mobile’s hotspots grew by 14% QoQ to 24,800 from 21,800. Helium Mobile’s unlimited plans are considerably less than the average three-figure plans that categorize American telecom. It also enables users to save even more through its Discovery Mapping feature, which rewards users in HNT for sharing their location. Since February 4, this has changed to Cloud Points, which will be covered more in-depth in the Q1 report. In addition to its ability to attract suppliers, Helium Mobile seems primed to continue attracting new users (regardless of crypto-nativeness) to its telecom network.

The network's power was shown during the Hurricane disaster in Helene, North Carolina, which left many people without electricity and water at the end of September. Helium hotspots stayed active during the disaster and gave people access to 5G coverage. The team also shipped out kits, including Starlink, that could be used for emergency coverage.

In Q4 IoT hotspots grew by 20% QoQ, ending the quarter with 33,00 hotspots onboarded since the Solana migration in early 2023, with several thousand of them coming from gamers. Before the migration, the network had over 342,000 active hotspots, bringing the network total to over 375,000.

When Helium first launched the IoT product, the rewards offered to hotspot owners reached thousands of dollars per month. By nature, the Proof-of-Coverage (PoC) algorithm hurts hotspot rewards if more hotspots provide coverage around it. Therefore, as more people bought hotspots, the rewards that were once assumed decreased significantly. The rate of adoption of the hotspots for the IoT network was parabolic.

However, usage has yet to keep up with supply-side adoption. Despite DCs also being used to cover the onboarding fees associated with setting up a hotspot (e.g., it costs $10 in DCs to set up the location of a hotspot in the network), the data transfer portion of the DCs that were getting burnt didn’t surpass a couple of hundred dollars per day. To summarize, Helium had managed to set up the infrastructure to provide the LoRaWAN connectivity but hasn’t yet found sufficient demand for it.

Helium's website shows the network's coverage with both types of hotspots. Most of the coverage centers around large North America, Europe, and Southeast Asia cities.

Data Credits

Data credits (DC) have a fixed price of $0.00001 and are used to pay for data transfers and onboarding fees on IoT, Mobile, and future subnetworks. Total DC burns ended at $547,400 for Q4. The average daily DC burns increased by 32% to $5,950 from $3,033. $5,842 came from the Mobile subDAO, representing 98% of DC burns for the quarter, and $108 came from the IoT subDAO.

Since February 22, daily DC burns for the IoT subDAO have slowly grown, with the peak at $136. Helium’s average daily IoT DC burned increased by 13% QoQ. The LoneStar organization led the current with an average daily burn of $40.13, which was a 37% market share.

Mobile Subscribers

When onboarding to Helium Mobile, users are sent a Mobile NFT to their wallet, which can be used to track Helium Mobile subscribers. In Q4, subscribers grew by 7% QoQ to 124,800 from 116,460. The significant spike in January was when Helium Mobile became available to the public. It is important to note that some of these numbers could be unconfirmed since we are only tracking NFT holders.

Helium Mobile’s product offering seems to have more adoption than its closest competitor, World Mobile (120K at the time of writing). In May 2024, Helium announced the rollout of its Group Family Plans, offering unlimited talk, text, and data nationwide for $20 per month. In the United States, this positions Helium Mobile as a cheaper alternative to the $30 for 5GB data plan that World Mobile offers. Helium also differs in its T-Mobile partnership that promises “Dynamic Coverage,” where Helium Mobile users connect to Helium hotspots when possible and connect to outsourced coverage provided by T-Mobile when Mobile hotspot coverage is unavailable. The growth is expected to continue with its partnership with the newly announced Solana Mobile Seeker phone. Each phone comes with 4 months of free Helium Mobile service.

It is important to note that in early February 2025, the team launched a free plan that allows users 3 GB of monthly data with the option to purchase additional data for $7.50/GB. They now offer three different tiers of plans:

• Zero: $0.00/month with 3GB of data
• Air: $15.00/month with 10GB of data
• Infinity: $30.00/month with 36GB of data

All of these plans are eligible to earn cloud points from their plan. The new plans will be covered in more detail in the next quarter.

Carrier Offloading

Starting June 18 this year, Helium partnered with legacy telecom companies to use Helium hotspots when users are in areas of sufficient coverage. To date, Helium has partnered with six carriers to offload user data. Offloaded data is the amount of production data subscribers from other carriers have transferred through the Helium Network. In Q4, the data offloaded grew by 555% to 576 TB from 88 TB.

Carrier 2 ended the quarter with the most offloaded data at 458 TB, a 521% increase. Carrier 1 ended with 118 TB offloaded, a 729% increase. Carrier 3, which only started on September 5, ended the quarter with 1.1 TB offloaded.

This is one of the biggest growth opportunities any Web3 company has ever had. Helium Mobile already has plans to onboard more carriers to the program. Anyone can view up to date stats at Hellohelium.com.

Paid Traffic

Paid traffic is the amount of data paid for that is sent through Helium Mobile Hotspots. In Q4, the average daily mobile paid traffic grew by 99% QoQ to 11.7 TB from 5.9 TB. The growth brings the total paid traffic to 2,557 TB of data sent through a hotspot. This is a 73% increase QoQ - 1,482 TB had been sent at the end of Q3. As one of the main revenue drivers for the Helium network, this metric is expected to continue growing as the protocol grows.

Qualitative AnalysisHNT Unification (HIP 138)

To streamline its tokenomics and align incentives across the network, Helium implemented Helium Improvement Proposal (HIP) 138, dubbed "Return to HNT". This proposal aimed to simplify the network's token structure by reverting to HNT as the sole reward token, phasing out IOT and MOBILE tokens.

Key aspects of HIP 138 include:

• Simplified Participation: The move to a single token system reduces complexity for users and builders, potentially lowering barriers to entry for new participants.
• Redistribution of Emissions: The change involves redirecting 70% of HNT emissions to the MOBILE subnetwork and 30% to the IOT subnetwork, adjusting rewards for network participants.
• Token Conversion: Current IOT and MOBILE token holders can convert their assets to HNT through the Helium Wallet App or other dApps, facilitating a transition for existing stakeholders.

The implementation of HIP 138, which passed with 85.35% approval, demonstrates Helium's responsiveness to community feedback and its commitment to creating a more efficient ecosystem.

Phasing Out CBRS Radios (HIP 139)

In a significant technological shift, Helium approved HIP 139, which aims to phase out Citizens Broadband Radio Service (CBRS) radios from its ecosystem. This decision reflects Helium's efforts to optimize its network infrastructure and align with future growth plans.

Key points of HIP 139 include:

• Gradual Phase-Out: The proposal establishes a schedule to permanently end rewards for CBRS radios, allowing for a managed transition.
• Support for Affected Users: Nova Labs committed to assisting CBRS owners by re-flashing their equipment to stock firmware and offering a swap program for free Wi-Fi Hotspots, demonstrating Helium's commitment to its community during technological transitions.
• Focus on Wi-Fi Technology: The move suggests a strategic shift towards Wi-Fi technology as a key component of Helium's future infrastructure.

The high approval rate of 85.20% for HIP 139 indicates strong community alignment with this technological direction.

Smart City Initiatives

Helium's expansion into smart city applications marked a significant broadening of its use cases beyond basic IoT connectivity. The network made progress in supporting critical infrastructure monitoring and public safety initiatives. Notable examples include:

• Wildfire Detection: Helium partnered with U.S. Pacific Gas and Electric to implement wildfire detection systems, leveraging its decentralized network to enhance early warning capabilities in fire-prone areas. This was evident when Torch Sensors used Helium IoT devices to help assist during the LA wildfires.
• Flood Monitoring: Collaboration with the U.S. Geological Survey for flood detection systems demonstrated Helium's potential in environmental monitoring and disaster prevention.

These initiatives showcase the versatility of Helium's network and its application to societal challenges through decentralized technology.

Integration with Other DePIN Projects

Helium's expanding horizons were further evidenced by its growing integration with other projects in the DePIN space. These collaborations demonstrate the network's commitment to fostering a robust and interconnected DePIN ecosystem:

• DIMO Network Integration: DIMO Network announced its integration with Moken Market's DePIN tracker, allowing users to manage multiple DePIN projects, including Helium hotspots, in one place. This integration enhances user experience and interoperability within the DePIN ecosystem.
• Hivemapper Collaboration: While not a direct partnership, Hivemapper's goal to potentially triple Helium's subscriber base indicates a competitive yet collaborative environment within the DePIN space. This dynamic could drive innovation and growth across the entire sector.

These integrations and collaborations serve to create a more interconnected DePIN landscape, with Helium playing a central role in fostering this ecosystem.

Institutional Interest

Q4 2024 saw increased institutional interest in Helium and the broader Decentralized Physical Infrastructure Networks (DePIN) sector:

• Grayscale Inclusion: Helium was reintroduced to Grayscale's top 20 tokens to watch for Q1 2025, according to The Block. Grayscale is a prominent cryptocurrency asset management firm.
• Venture Capital Interest: The DePIN sector, including Helium, attracted venture capital attention. Borderless Capital raised $100 million for its third DePIN fund, according to The Block.
• Harvard Business School Case Study: In November, Harvard Business School offered a case study on Helium in their strategy curriculum.
• Coinbase 50 Index Inclusion: In November, Coinbase released COIN50, a benchmark representing the top 50 eligible digital assets. Eligible institutional and Coinbase Advanced users are able to trade the index via a COIN50 perpetual future on Coinbase’s international exchange.
• Traditional Telecom Integration: According to CoinDesk, Nova Labs, associated with Helium, tested hotspots in partnership with Telefonica in Mexico. This collaboration represents an interaction between a decentralized network and a major telecom company.
• Ameriband Partnership: Announced in October, Ameriband’s 100,000+ Data-Only Hotspots join the Helium Network, expanding coverage across the U.S.
• TIP OpenLAN Case Study: In October TIP, Telecom Infra Project, wrote a case study on the Helium Network. The study focused on Helium’s use of OpenWiFi and the scaling impact that the carrier offloaded program brings.

Awards won in Q4

• Messari DePIN Protocol of the Year
• WiFi Now Awards: Best WiFi Innovation and Best WiFi Startup, and finalist in the Affordable Connectivity category

Closing Summary

The fourth quarter of 2024 marked a period of growth, strategic evolution, and expanding horizons for the Helium Network. As a participant in the Decentralized Physical Infrastructure Networks (DePIN) sector, Helium demonstrated its ability to innovate, adapt, and drive real-world adoption of blockchain technology. The network's expansion to over 350,000 hotspots across more than 80 countries, coupled with growth in data offloading and user engagement, solidified its position in the decentralized infrastructure sector.

Helium's strategic decisions during this quarter, including the unification of its token system under HNT, and the phasing out of CBRS radios, showed its commitment to creating a more efficient and user-friendly ecosystem. These moves, backed by community governance and participation, have set the stage for Helium's continued evolution in the dynamic DePIN landscape. The network's expansion into diverse applications, from smart city initiatives to cross-chain collaborations, demonstrated its versatility and potential to address real-world challenges through decentralized technology.