The value of IOTA (MIOTA) had been going up steadily in the early part of 2021 after years of trading in a tight range between $0.05 and $0.6. It rose to a peak of $2.68. Following a period of summer doldrums it has been, up to the time of writing (15 November), holding a slot just below $1.50.
This earlier rise followed the developing team’s announcement of upgrades to the network, including the possibility of using the IOTA decentralised ledger for different purposes, such as the development of smart contracts and tokenisation.
The crypto community responded positively to the news. The asset’s price surged 18% on the day the announcement was made. There was another flurry of trading in early September taking the price to just shy of $2. Now it has fallen back to $1.34 but still some 430% up for the year.
The second phase of IOTA’s Chrysalis project includes upgrades, enhancements to increase the network’s speed, reliability, and scalability, and a timeline outlining how the project will continue to advance.
Here we take a closer look at the coin’s technical setup and potential catalysts.
What is IOTA?
The IOTA token is the cryptocurrency that powers the project’s decentralised ledger. This network is primarily designed to support the Internet of Things (IoT) by providing a feeless ecosystem through which micro-data can be exchanged and recorded easily and fast.
Launched in 2016, the IOTA mainnet was started with $500,000 in funding obtained from seed investors who donated 5% of the IOTA Foundation’s tokens.
The IOTA Foundation is a non-profit organisation. It aims to provide an ecosystem that supports further advancements in the IoT field, given that transaction costs, scalability, and other similar issues have been an obstacle to the progress of this technology over the past few years.
A total of 2.779 billion tokens is the maximum supply for IOTA. They have been fully distributed. IOTA does not require the intervention of miners to validate transactions. Transactions are self-validated through IOTA’s underlying technology known as Tangle.
In theory, IOTA solves most of the issues of the “traditional” blockchain when it comes to processing large transaction volumes required to power the entire IoT ecosystem.
However, there are still security issues associated with Tangle. Some of these concerns are reportedly being addressed by the upcoming upgrade of the Chrysalis project.
Based on IOTA’s current price and its total maximum supply, the entire network is valued at $5.35bn. That is just a third of the project’s maximum historical market cap of nearly $15bn, which it reached in late 2017.
The IOTA project was co-founded by current chairman David Sønstebø, Dominik Schiener, Serguei Popov, and Serge Ivancheglo. Schiener and Popov have since left the board.
IOTA news: Chrysalis network upgrade
The 5 February announcement marked a possible turning point for the price of the IOTA token. The network’s upcoming upgrade could finally tackle the issues of scalability and security.
The developing team has been updating the community via its website on any progress made on the Chrysalis project, reporting monthly status updates, and details on migrations and developer documentation.
On 21 April, senior management announced that its ecosystem is ready for real-world uses as a result of the Chrysalis upgrade. This enterprise-ready ecosystem was launched on 28 April. Along with other improvements, the management team claims that power consumption has been reduced by 60%.
“We now have an enterprise-ready platform that will please both industry and consumer users with its enhanced functionally, industry-standard upgrades, and energy efficiencies. Our engineers have worked diligently to build the foundation for Coordicide and beyond”, said the Co-Founder and Chairman of the IOTA Foundation, Dominik Schiener.
IOTA price prediction
The likelihood that IOTA could become the go-to network to power IoT devices and platforms is particularly high at this point. The completion of the landmark Chrysalis upgrade could be the reason why the token has been behaving so bullishly of late.
The chart above shows how the MIOTA token has been posting a series of higher lows while nearing a long-dated resistance of $2.7 a coin.
With a total market capitalisation of $3.7bn, which ranks it as the 52nd biggest crypto, the project does not appear to be overvalued. It may be a promising project to watch in the crypto space due to its real-life applications and upside potential.
A plausible IOTA coin price prediction could see the price surge to $4.2 a coin in the following months as long as that $2.7 resistance is broken at some point based on Fibonacci projections.
MACD readings are almost the same as those seen in 2018, which highlights the significant positive momentum that the token is seeing.
IOTA future price: analyst views
Referred to as one of the most promising crypto projects for IoT, IOTA enjoys bullish market sentiment supported by numerous analytical resources.
-
Wallet Investor views IOTA as an “awesome” long-term investment. It estimates MIOTA may hit $2.21 within 12 months and climb up to $5.72 in five years.
-
Digital Coin believes IOTA could reach $2.01by the end of 2021, move up to $2.87 in 2023, $4.02 in 2025 and eventually hit $6.01 in 2028.
FAQ
Read more: Newest cryptocurrencies to watch: Internet Computer and Enjin
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.
This news is republished from another source. You can check the original article here
Be the first to comment