Decentralized Mapping Project - HONEY's Surge and Challenges

The native token HONEY of the Solana-based decentralized mapping platform Hivemapper has recently experienced a substantial surge of over 40%, diverging from the downward trend observed in various digital currencies.

In the past 24 hours, HONEY witnessed a remarkable 43% increase in its value and is currently being traded at $0.08141. The daily trading volume of this cryptocurrency soared by more than 16 times, totaling around $7.2 million.

HONEY 24-hour price chart | Source: CoinMarketCap

Moreover, the market capitalization of the token surged by over 56%, reaching $161.9 million. Despite this surge, HONEY is still lagging behind by 81% from its peak value of $0.4315 reached on December 7, 2022.

The decentralized mapping network also boasts a circulating supply of 1.9 billion HONEY tokens with a total supply exceeding 6.3 billion tokens.

Hivemapper stands out in the Decentralized Public Infrastructure (DePIN) sector, aiming to outshine major platforms like Google Maps, which currently attracts over a billion active users monthly.

The platform’s model involves collecting mapping data from contributors who install Hivemapper dashcams in their vehicles. These contributors actively map roads during their journeys and earn HONEY tokens based on the demand for specific road mapping services.

Beyond benefiting drivers, individuals who verify the mapped data submitted by volunteers are also rewarded in HONEY tokens.

According to a report by Franklin Templeton, a significant player in asset management, Hivemapper is a promising front runner in the DePIN arena. However, the platform faces challenges linked to insufficient demand for its mapping services.

The surge in the value of HONEY tokens is attributed to the network’s expansion, having mapped over 13.8 million unique kilometers. Users collectively covered more than 262.55 million kilometers, predominantly in regions like the United States, Canada, Europe, and East Asia.

On the downside, regions such as China, Russia, Africa, and other continents remain poorly mapped, posing a considerable challenge to Hivemapper as only 23% of the earth’s surface is currently covered.

In the midst of competition with giants like Google Maps and Apple Maps, which come pre-installed on smartphones, Hivemapper distinguishes itself by offering monetary rewards to volunteers for their mapping contributions. This strategic move, contrary to the non-monetary incentives of traditional web2 services, has led to the appreciation of HONEY tokens as investors anticipate increased route coverage.

Traders seeking to capitalize on HONEY’s recent fluctuations, particularly after a substantial drop followed by a remarkable recovery, have further fueled the token’s value surge. The recent introduction of an upgraded Hivemapper website and the token’s listing on Kraken Pro, a major cryptocurrency exchange, have also bolstered the token’s value.

Additionally, the rise in HONEY’s price was supported by the formation of a positive chart pattern called a falling wedge, indicating a potential breakout in the future.