What is expected in the development of IOTA?
IOTA’s development is moving forward with these key milestones:
- Tangle DAO Phase 2 (Q4 2025) – Expanding community-led governance.
- Global Trade Network Expansion (2025–2026) – Growing partnerships through the TWIN Foundation.
- MoveVM Smart Contract Upgrades (2026) – Improving smart contract capabilities for decentralized finance (DeFi) and business use.
Deep Dive
1. Tangle DAO Phase 2 (Q4 2025)
Overview:
The Tangle DAO Phase 2 proposal (SGP-0012) aims to give the community more control over funding and decision-making within the IOTA ecosystem. This plan was approved by a community vote in August 2025 (source). It focuses on building infrastructure, supporting developers with grants, and enabling better interaction between different blockchain networks.
What this means:
This is a positive step for IOTA because decentralized governance can encourage more developers to build on the platform and align everyone’s interests. However, there are risks like low voter participation or funds not being used effectively.
2. Global Trade Network Expansion (2025–2026)
Overview:
The TWIN Foundation, launched in May 2025 with partners including the World Economic Forum, plans to expand its blockchain-based trade network into Europe and the Middle East. Current pilot projects track agricultural products between the UK and EU and monitor exports from Kenya.
What this means:
This development is somewhat positive. Real-world use of the network could increase IOTA’s value, but challenges like government regulations and how quickly businesses adopt the technology will affect its success.
3. MoveVM Smart Contract Upgrades (2026)
Overview:
IOTA’s Move Virtual Machine (MoveVM), part of the Rebased Mainnet, will get upgrades to support more advanced DeFi features and business processes. The upgrades will include quantum-resistant security and the ability to process over 50,000 transactions per second (IOTA Docs).
What this means:
This is a strong positive for IOTA because better smart contract functionality can attract more developers. Still, competition from platforms like Ethereum and Solana remains a challenge.
Conclusion
IOTA’s roadmap focuses on expanding decentralized governance, building trade infrastructure, and enhancing technical features to become a key platform for Web3 and enterprise use. While growing validator numbers (80+ as of August 2025) and partnerships show progress, it’s important to watch how global economic changes in trade might affect IOTA’s niche.
What updates are there in the IOTA code base?
IOTA’s recent software updates focus on making the network more decentralized, compliant with regulations, and efficient in reaching agreement on transactions.
- Mainnet Node Upgrade (August 14, 2025) – More validators added and improved transaction processing.
- Starfish Consensus (September 10, 2025) – New experimental method to keep the network stable during attacks or heavy traffic.
- Hierarchies Alpha (August 19, 2025) – A flexible system to manage trust and compliance for businesses and IoT devices.
Deep Dive
1. Mainnet Node Upgrade (August 14, 2025)
What happened: The IOTA Mainnet Node Software version 1.4.1 increased the number of validators from 50 to 80, which helps spread control across more participants. It also introduced a better way to order transactions, making the network faster and more secure.
Why it matters: More validators mean the network is harder to control or attack, and faster transaction processing is key for businesses that want to use IOTA. This update makes IOTA more attractive for real-world use. (Source)
2. Starfish Consensus Protocol (September 10, 2025)
What happened: Version 1.6.1 added Starfish, an experimental upgrade that separates how transaction headers and data are shared across the network. This aims to reduce delays during network stress like attacks or congestion.
Why it matters: While still being tested internally and not yet live, this could make IOTA more reliable when the network faces challenges. For now, it’s a neutral development but shows promise. (Source)
3. Hierarchies Alpha (August 19, 2025)
What happened: Hierarchies Alpha introduces a way to program and audit trust relationships on and off the IOTA network. It lets organizations define who trusts whom, for what purpose, and under what conditions.
Why it matters: This is important for industries that need clear rules and compliance, like supply chains and identity verification. It opens doors for IOTA to be used in regulated environments by embedding trust directly into the system. (Source)
Conclusion
These updates show IOTA’s commitment to building a network that’s scalable, secure, and ready for business use. By increasing validators, testing new consensus methods, and creating trust frameworks, IOTA is preparing for wider adoption in areas like the Internet of Things (IoT) and international trade. How these improvements will shape IOTA’s future role in these industries remains an exciting question.
What could affect the price of IOTA?
IOTA’s price depends on updates to its technology, real-world use, and market factors.
- Staking & Tokenomics – New tokens minted at 6% per year could increase supply, but fees burned help balance this.
- Trade Partnerships – The TWIN Foundation’s global trade projects may increase IOTA’s usefulness.
- Regulatory Moves – Compliance tools like Lukka integration make it easier for institutions to use IOTA.
Deep Dive
1. Protocol Upgrades & Staking (Mixed Impact)
Overview:
In May 2025, IOTA launched its Rebased network, introducing delegated proof-of-stake (DPoS) with staking rewards around 13% and a fixed daily creation of 767,000 new IOTA tokens. However, about 460 million tokens (around 11% of the total supply) will become available by October 2027, which could lead to selling pressure. Part of the transaction fees are burned, helping to reduce inflation.
What this means:
Staking rewards encourage people to hold IOTA but also increase the total supply. The 6% yearly minting rate might limit price growth unless growing demand from decentralized finance (DeFi)—which has increased total value locked (TVL) by 260% to $36 million since July—absorbs the new tokens. Keep an eye on the number of validators (currently 80, up from 50 at launch) and how many fees are being burned.
2. Real-World Adoption (Bullish)
Overview:
The TWIN Foundation, supported by the World Economic Forum, is working to digitize trade routes in East Africa and the UK. IOTA Identity v1.6 supports GDPR-compliant Know Your Customer (KYC) processes, and the Gas Station v0.2 feature allows decentralized apps (dApps) to operate without charging fees—important for business use.
What this means:
If trade-related transactions increase by 10%, network fees burned could rise by about $120,000 per month (based on the current average fee of $0.0005). Partnerships like TradeMark Africa highlight IOTA’s focus on the Internet of Things (IoT), setting it apart from platforms like Ethereum and Solana.
3. Regulatory Risks (Bearish)
Overview:
In August, Upbit exchange paused IOTA deposits during a software upgrade, showing how exchange integrations can be fragile. On the positive side, Lukka’s anti-money laundering (AML) tools and IOTA’s licensing in the Abu Dhabi Global Market (ADGM) in 2023 position it well for regulatory compliance.
What this means:
Strict European Union MiCA regulations, effective in 2024, might slow adoption if identity solutions face audits. On the other hand, clear rules could attract interest from exchange-traded funds (ETFs)—BlackRock’s real-world asset (RWA) fund reportedly holds IOTA, according to CoinDesk.
Conclusion
IOTA’s price will likely depend on whether growth in trade and DeFi use can outpace the unlocking of new tokens. The $0.274 Fibonacci resistance level (23.6% retracement) is important—a breakout above this could push the price toward $0.50. However, if daily transactions don’t stay above 50,000 (currently about 26,000), bearish trends might return.
Will TWIN’s Q3 pilot projects be enough to offset the impact of 210 million tokens unlocking by October?
What are people saying about IOTA?
The IOTA (IOTA) community is optimistic but cautious, balancing new technology advances with market realities. Here’s what’s happening now:
- Rebased Upgrade Boosts DeFi Growth – Total value locked (TVL) reaches $36 million, with staking rewards around 13%.
- Traders Watch $0.27 Price Level – Positive chart signals face challenges from broader market trends.
- Enterprise Use Expands – New partnerships and compliance tools are launching.
In-Depth Look
1. @iota: Rebased Upgrade Spurs Real-World Use
"Monthly transactions jumped 30% to nearly 780,000 after the Rebased upgrade, with $36 million locked in DeFi apps like Swirl and Virtue Money."
– @iota (283K followers · 12K impressions · 2025-08-17 19:30 UTC)
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What this means: This is a positive sign for IOTA’s usefulness. The 13% annual staking rewards and growing DeFi activity show the network is becoming more mature and valuable.
2. @CryptoSignalBot: Traders Focus on $0.27 Price Target
"Entry price: $0.208 | Take profit: $0.215 | Stop loss: $0.204. RSI indicator shows buying interest near support."
– Anonymous Trader (4.2K followers · 8K impressions · 2025-08-17 04:29 UTC)
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What this means: The short-term outlook is mixed. Technical charts suggest a buying opportunity, but there’s risk if the price falls below $0.17.
3. @Lukka: New Institutional Access Launches
"Real-time anti-money laundering (AML) and know-your-customer (KYC) tools now support tokenizing real-world assets and meeting exchange rules."
– @iota (283K followers · 9K impressions · 2025-07-26 13:00 UTC)
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What this means: This is a strong long-term positive. Connecting IOTA to regulated financial systems could bring in more business users beyond just traders.
Summary
Overall, the outlook for IOTA is cautiously optimistic. Infrastructure improvements and growing DeFi use are encouraging, but technical resistance remains. The Rebased upgrade led to a 30% monthly increase in transactions, but traders want to see a clear price move above $0.27 to confirm a trend change. Keep an eye on the $0.204 support level and results from the TWIN Foundation’s trade pilot—these could be key to wider institutional adoption and future growth.
What is the latest news about IOTA?
IOTA is gaining momentum in decentralized finance (DeFi) and making progress with regulations, all while upgrading its network. Here’s the latest update:
- Rebased Upgrade Hits Record TVL (August 17, 2025) – Network activity surges thanks to new staking options and smart contracts.
- Upbit Pauses IOTA Transactions (August 13, 2025) – Temporary halt during important network improvements.
- Klever Becomes an IOTA Validator (August 19, 2025) – Boosting decentralization and cross-chain connections.
Deep Dive
1. Rebased Upgrade Hits Record TVL (August 17, 2025)
Overview:
IOTA’s recent Rebased upgrade pushed its Total Value Locked (TVL) to a new high of $36 million, a 260% increase since July. This upgrade introduced MoveVM smart contracts, staking rewards of 13%, and decentralized validators. Popular projects like Swirl ($17M TVL) and Pools Finance ($11M) are now part of the network. Monthly transactions also increased by 30%, reaching nearly 780,000.
What this means:
This is a positive sign for IOTA. A higher TVL means more people are using IOTA for DeFi activities, and developers are showing more interest. The staking rewards encourage users to hold their tokens longer. Technical analysis shows a potential price increase if IOTA breaks through resistance at $0.274, with a strong support level at $0.142. (Crypto.News)
2. Upbit Pauses IOTA Transactions (August 13, 2025)
Overview:
South Korea’s leading exchange, Upbit, temporarily stopped IOTA deposits and withdrawals to support a network upgrade aimed at improving security and scalability. This pause limited traders’ ability to move funds for a short time.
What this means:
This is a normal step during major upgrades and has a neutral short-term effect. It highlights the importance of smooth coordination between exchanges and networks. Once the upgrade is confirmed successful, trading activity and liquidity could increase. (CoinMarketCap)
3. Klever Becomes an IOTA Validator (August 19, 2025)
Overview:
Klever, a popular multi-chain wallet with over 5 million users, joined IOTA as a validator. This helps make the network more decentralized and connects IOTA with other blockchains like Bitcoin and Ethereum.
What this means:
This is good news for IOTA’s cross-chain capabilities. Klever’s large user base could help increase adoption of IOTA’s technology across different blockchain ecosystems. It also strengthens IOTA’s reputation for enterprise-level solutions. (Klever)
Conclusion
IOTA’s Rebased upgrade and partnership with Klever show its focus on growing in DeFi and preparing for institutional use. The temporary pause by Upbit reflects the challenges of upgrading a complex network. With TVL and transaction numbers rising, the big question is whether IOTA can keep up this momentum as interest in alternative cryptocurrencies grows.
Why did the price of IOTA fall?
IOTA (IOTA) dropped 3.5% in the last 24 hours, underperforming the overall crypto market, which fell by 0.7%. This decline was influenced by technical resistance levels and disruptions in exchange liquidity. Here are the main points:
- Upbit suspension – South Korea’s largest crypto exchange paused IOTA deposits and withdrawals on August 13 due to a network upgrade, limiting trading options.
- Qubic controversy spillover – IOTA’s co-founder was involved in a controversy related to a 51% attack on Monero through the Qubic mining pool, raising concerns about the ecosystem.
- Technical resistance – IOTA’s price hit resistance at $0.1939 (its 30-day moving average), with momentum indicators showing neutral signals.
Deep Dive
1. Upbit Liquidity Shock (Negative Impact)
What happened: On August 13, Upbit temporarily stopped IOTA deposits and withdrawals during a network upgrade. Since South Korea makes up about 15% of IOTA’s trading volume, this significantly reduced liquidity.
Why it matters: Lower liquidity can increase price swings, especially for mid-sized cryptocurrencies like IOTA (market cap around $789 million). Traders might have sold their holdings early due to uncertainty about when the upgrade would finish or concerns about security.
What to watch: How quickly Upbit resumes normal service. Any delays could keep selling pressure high.
2. Qubic-Monero Fallout (Mixed Impact)
What happened: Sergey Ivancheglo, IOTA’s co-founder, was linked to the Qubic mining pool, which briefly controlled over half of Monero’s mining power from August 12 to 17. This raised questions about the fairness and decentralization of blockchain networks.
Why it matters: Although this event doesn’t directly affect IOTA’s technology, it has sparked concerns about governance risks tied to projects connected to the founder. However, IOTA’s recent Rebased upgrade (launched in May 2025) uses a different consensus method called Delegated Proof of Stake (DPoS), which helps protect against similar attacks.
3. Technical Resistance at Key Moving Average (Bearish Signal)
What happened: IOTA’s price was rejected at its 30-day simple moving average (SMA) of $0.1948. The MACD indicator showed weak momentum, unable to overcome the downward pressure.
Why it matters: This rejection suggests buyers are hesitant to push the price higher. Now, IOTA is testing a key support level at $0.18798, based on Fibonacci retracement. If it falls below this, the next target could be $0.18044, which was the low in 2024.
Conclusion
IOTA’s recent price drop is due to a combination of technical challenges, limited liquidity from Upbit’s suspension, and concerns stemming from the Qubic-Monero incident. Despite these short-term issues, the Rebased upgrade shows promise, with total value locked (TVL) reaching $36 million in August.
Key point to watch: Can IOTA maintain support at $0.18798 as Bitcoin’s market dominance grows? Falling below this level might trigger automated sell-offs. For more on Bitcoin’s influence, see Bitcoin’s market charts.