Honey surges 43% driven by Hivemapper network expansion
HONEY, the native token of the Solana-based decentralized mapping project Hivemapper, has surged over 40% amid a broader slump in other cryptocurrencies.
HONEY was up 43% in the last 24 hours and is trading at $0.08141 at the time of writing. The crypto asset’s daily trading was up over 16x, hovering around $7.2 million.
Moreover, the token’s market cap had jumped over 56%, currently standing at $161.9 million. Despite the notable jump in HONEY tokens, it is still down 81% from its all-time high of $0.4315, reached on Dec. 7, 2022.
The decentralized mapping network also has a circulating supply of 1.9 billion HONEY tokens with a total supply of over 6.3 billion tokens.
Hivemapper is a leading player in the Decentralized Public Infrastructure (DePIN) space, aiming to surpass Google Maps, which boasts over a billion monthly active users.
Hivemapper’s approach involves collecting mapping data through contributors who install Hivemapper dashcams in their vehicles. As these contributors drive, they map the roads and earn Hivemapper’s HONEY tokens. The token rewards vary based on the demand for mapping particular roads.
Not only do drivers benefit from this system; individuals who verify the mapping data submitted by volunteers also receive payments in HONEY tokens.
According to a June report by asset-management giant Franklin Templeton, Hivemapper is a promising early mover in the DePIN sector, though it faces challenges with lagging demand for its services.
HONEY tokens have seen a recent surge in value due to the growth of Hivemapper’s network, which has mapped over 13.8 million unique kilometers.
Users have collectively mapped more than 262.55 million kilometers, primarily in the United States, Canada, Europe, and East Asia.
However, large nations such as China and Russia, as well as continents like Africa, are inadequately mapped, posing a significant challenge to HiveMapper. According to their website, only 23% of the earth has been covered.
The network competes with established services like Google Maps and Apple Maps, which are pre-installed on smartphones, making it difficult for Hivemapper to gain market share.
However, web2 services such as Google Maps do not often compensate volunteers with monetary pay; instead, they provide nonmonetary bonuses and rewards related to their products and services.
As a result, Hivemapper’s HONEY token has appreciated in value as investors anticipate more route capacity.
Furthermore, the token’s value has skyrocketed as traders seek to profit from the recent drop in HONEY. In June, the token fell by more than 94% from its peak, prompting traders to buy the dip because they believe it is one of the strongest use cases for DePIN, a sector that is predicted to expand.
Additionally, the HONEY token’s price increase was bolstered by the launch of an upgraded version of the Hivemapper website and the token’s listing on Kraken Pro, a major cryptocurrency exchange.
Technically, the token also benefited from forming a bullish chart pattern known as a falling wedge, typically leading to a significant breakout when it reaches its confluence zone.
