DePin Project Hivemapper Bucks Market Trends as HONEY Token Soars by Over 30%
DePin startup Hivemapper has defied the current market downturn, with its HONEY token experiencing a surge of over 30% in the past 24 hours. Despite the significant drop in Bitcoin’s value earlier today, HONEY emerged as one of the top performers on CoinGecko.
Unquestionably, this impressive rally was largely influenced by HONEY’s recent listing on Kraken, one of the leading cryptocurrency exchanges. Kraken announced the listing decision on July 2, and trading began the following day. This development seems to have acted as a catalyst for the token’s sharp increase in value.
HONEY reached its highest value since May 13 earlier today, hitting $0.0875. However, after reaching this peak, the token experienced a 10% drop and is currently trading around $0.0772. This retracement can be attributed to investors capitalizing on the rapid price increase and taking profits.
To sustain its upward momentum, HONEY needs to close above the resistance level of $0.0832, while also consistently remaining above the support level of $0.0722. Failure to maintain these levels may result in the token losing its recent gains and potentially reverting to previous price levels.
Despite this promising performance, it’s worth noting that HONEY is still more than 85% below its peak price in January.
Hivemapper, the company behind the HONEY token, operates a decentralized mapping network that leverages artificial intelligence (AI) and crowdsourced data to create a global map. What sets this platform apart from traditional services like Google Maps is its utilization of dashcams and mobile phone telemetry, allowing personal and enterprise decentralized applications (dApps) to access real-time geolocation data.
An interesting aspect of Hivemapper’s growth strategy is its unique approach to engaging contributors. The company incentivizes contributors, such as early adopter Brad who purchased and distributed 100 Hivemapper dashcams to Uber and Lyft drivers, sharing his earned HONEY tokens with them. This strategy has significantly expanded the network’s reach and efficiency.
However, challenges still lie ahead for Hivemapper. According to a report by Franklin Templeton, while the project has successfully mapped 21% of the world’s roads in just 31 months, it struggles with the demand side of its operations. The project has not witnessed proportional growth in demand compared to the supply of mapping data, potentially leading to an inflated token supply and subsequent devaluation.