What could affect the price of IOTA?
IOTA’s price is currently caught between positive factors like technical momentum and ecosystem growth, and challenges such as upcoming token unlocks that could increase supply.
- Staking & Tokenomics – Offering 13% yields attracts holders, but daily minting of 767,000 new tokens adds inflation that may limit price gains.
- Network Upgrades – Increasing validator nodes to 80 and adopting MoveVM smart contracts could boost decentralized finance (DeFi) activity.
- Token Unlocks – With 643 million IOTA tokens set to unlock by 2027, there’s a risk of price dilution despite a strong current staking rate of 34.6%.
Deep Dive
1. Staking Dynamics (Mixed Impact)
Overview:
IOTA uses a Delegated Proof of Stake (DPoS) system that rewards holders with about 13% annual returns for staking their tokens. Currently, around 1.3 billion tokens (about 34.6% of all IOTA) are staked. However, the network also creates 767,000 new tokens every day, which adds inflation and increases the total supply to an expected 5.27 billion by 2027 (IOTA Whitepaper).
What this means:
While staking reduces the number of tokens available for trading in the short term, the steady 6% yearly inflation (compared to Ethereum’s 1.9%) could limit price growth unless demand grows faster than new supply.
2. Protocol Upgrades (Bullish Impact)
Overview:
A major network upgrade on August 14 expanded the number of validator nodes to 80, improved transaction processing through IIP-3 sequencing, and introduced tools for institutional compliance, such as integration with Lukka (source). Following the upgrade, total value locked (TVL) in IOTA-based projects jumped 260% to $36 million.
What this means:
With improved scalability supporting up to 50,000 transactions per second and the addition of MoveVM smart contracts, IOTA is better positioned for enterprise use cases. For example, the TWIN trading platform’s collaboration with African governments shows real-world adoption (source).
3. Unlock Schedule (Bearish Risk)
Overview:
Starting now, 19.1 million IOTA tokens unlock every two weeks until October 2025, then 12.3 million tokens unlock monthly until 2027. This will increase the circulating supply by about 30%, reaching 5.27 billion tokens (IOTA Whitepaper).
What this means:
Historically, IOTA’s price dropped 41% after the May 2025 Rebased upgrade due to selling pressure. Similar price declines could happen near future unlock dates if demand doesn’t keep up with the increased supply.
Conclusion
IOTA’s price outlook depends on whether growth in DeFi projects like Swirl and Virtue, along with enterprise adoption, can outpace inflation from token unlocks. The $0.2742 price level is critical—breaking above it could push the price toward $0.50 (a 168% increase), while failing to hold it might lead to a retest of support around $0.142. Keep an eye on weekly transaction volumes (currently about 779,000) and exchange token reserves to gauge supply and demand trends.
Will staking demand be strong enough to absorb the upcoming token unlocks, or will increased supply lead to price dilution?
What are people saying about IOTA?
The IOTA community is balancing excitement over technical upgrades with cautious trading. Here’s what’s happening right now:
- Rebased upgrade brings optimism, but the price struggles to move past key resistance
- Governance vote sparks discussion about growth led by the DAO (Decentralized Autonomous Organization)
- Partnership with Klever increases the number of validators, improving decentralization
- Listing on HoudiniSwap enhances liquidity, though trading volume shows mixed signals
Deep Dive
1. @CryptoSignalsPro: Positive technical setup meets resistance
"IOTA holds above $0.208 support – breakout to $0.215 possible with sustained volume"
– @CryptoSignalsPro (22k followers · 18k impressions · 2025-08-17 04:29 UTC)
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What this means: Traders see IOTA holding steady near an important support level, which is a good sign. However, the price needs to break through the $0.213–$0.215 range to confirm a strong upward move.
2. @iota: Governance vote divides opinions
"Proposal SGP-0012 would allocate 20M IOTA to infrastructure development"
– @iota (391k followers · 189k impressions · 2025-08-20 14:00 UTC)
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What this means: The community is split. While the proposal could speed up ecosystem growth, some worry about how the DAO manages its funds and potential risks involved.
3. @klever_org: New validator boosts network security
"Klever joins IOTA's validator set, expanding decentralization to 80 nodes"
– @klever_org (283k followers · 67k impressions · 2025-08-19 12:01 UTC)
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What this means: This is a positive step for IOTA’s security. More validators mean the network is less dependent on a few core nodes, making it stronger and more decentralized.
4. @HoudiniSwap: Cross-chain trading expands
"IOTA now swappable via Houdini’s privacy-focused bridge"
– @iota (391k followers · 92k impressions · 2025-08-19 16:00 UTC)
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What this means: This listing makes it easier to trade IOTA across different blockchains, improving access. However, weekly trading volume has dropped by 27%, from $18.5 million to $13.5 million, showing mixed market interest.
Conclusion
The outlook for IOTA is mixed. While technical upgrades like the Rebased update and more validators show progress, the price remains stuck below a key resistance level around $0.17, limiting gains since July. Keep an eye on the SGP-0012 governance vote, which closes on August 25, for insight into how the community feels about using the DAO to drive future growth.
What is the latest news about IOTA?
IOTA is gaining momentum in decentralized finance (DeFi) and benefiting from new regulatory partnerships as the altcoin market heats up. Here are the key updates:
- Rebased Upgrade Boosts TVL (August 17, 2025) – IOTA’s network reached $36 million in Total Value Locked (TVL), offering 13% staking rewards and increased use of smart contracts.
- Klever Becomes a Validator (August 19, 2025) – This move adds more decentralization and shows growing confidence in IOTA’s network.
- Partnership with Lukka for Compliance (July 26, 2025) – IOTA integrated advanced anti-money laundering (AML) and know-your-customer (KYC) tools to support institutional use and real-world asset tokenization.
In-Depth Look
1. Rebased Upgrade Boosts TVL (August 17, 2025)
What happened:
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, which allow developers to build decentralized applications, and offered staking rewards of 13% through platforms like Swirl and Virtue. The network also saw a 30% rise in monthly transactions, reaching nearly 780,000.
Why it matters:
A higher TVL means more users are locking their assets in IOTA’s DeFi ecosystem, signaling growing trust and utility. Technical analysis suggests a potential price increase of up to 135% if IOTA breaks above $0.2742. However, if the price falls below $0.1420, this positive trend could be at risk (Crypto.News).
2. Klever Becomes a Validator (August 19, 2025)
What happened:
Klever, a popular multi-chain wallet provider, joined IOTA’s network as a validator. This expands the number of validators to 80, helping to make the network more decentralized and secure. This follows IOTA’s v1.4.1 upgrade, which improved transaction speed and efficiency.
Why it matters:
More validators mean stronger network security and reliability. While IOTA’s market cap of $754 million is still smaller compared to some other blockchain platforms, Klever’s involvement could help IOTA connect with other blockchains, improving interoperability (Klever).
3. Partnership with Lukka for Compliance (July 26, 2025)
What happened:
IOTA integrated Lukka’s real-time compliance tools, including AML and KYC checks and risk scoring, directly into its protocol. This move aims to attract institutional investors and supports tokenizing real-world assets (RWAs). It also aligns with Abu Dhabi’s regulatory framework for distributed ledger technology (DLT).
Why it matters:
Regulatory compliance is crucial for gaining trust from businesses and financial institutions, especially in areas like trade finance and asset tokenization. While this partnership is promising for long-term growth, its immediate impact on IOTA’s price will depend on how well it is implemented (IOTA).
Conclusion
IOTA’s recent upgrades and validator expansion highlight its growing role in DeFi, while partnerships focused on regulatory compliance aim to connect cryptocurrency with traditional finance. As the altcoin market heats up (with the CMC Altcoin Season Index at 79), IOTA’s current price of $0.186 could benefit from this momentum. Keep an eye on TVL growth and whether the price breaks above $0.27 to confirm a strong upward trend.
What is expected in the development of IOTA?
IOTA’s roadmap is centered on growing its ecosystem, meeting regulatory standards, and building a decentralized network infrastructure.
- Tangle DAO Phase 2 (Q4 2025) – Introducing community-led governance to drive ecosystem growth.
- IOTA Identity Mainnet Integration (Q4 2025) – Launching decentralized digital identity solutions.
- Node Validator Expansion (2026) – Increasing the number of network validators to over 100 for stronger decentralization.
- TWIN Foundation Global Trade (2026) – Rolling out IoT-powered trade solutions worldwide.
- Lukka Compliance Integration (Q4 2025) – Adding advanced anti-money laundering (AML) and know-your-customer (KYC) tools for institutional use.
Deep Dive
1. Tangle DAO Phase 2 (Q4 2025)
Overview: Approved by the IOTA community (SGP-0012), this phase focuses on decentralized governance, funding new projects, and expanding IOTA’s decentralized finance (DeFi) and real-world asset tokenization capabilities. Key initiatives include incentives for liquidity providers and grants for developers.
What this means: This is a positive step for IOTA, as it encourages community participation and attracts developers. However, delays in implementation could slow progress.
2. IOTA Identity Mainnet Integration (Q4 2025)
Overview: Building on the recent beta release (IOTA Identity), this update will bring self-sovereign identity solutions to the main network. These solutions can be used in supply chains, healthcare, and IoT devices, with a design that supports privacy laws like GDPR.
What this means: This could be a game-changer if businesses adopt it, positioning IOTA as a leader in secure, verifiable digital identities. Adoption will depend on partnerships with enterprises.
3. Node Validator Expansion (2026)
Overview: After increasing the number of validators to 80 in August 2025 (v1.4.1), IOTA plans to grow this number to over 100. More validators mean a more decentralized and secure network, which is important for enterprise trust.
What this means: This strengthens network security and trustworthiness, but recruiting enough validators may be challenging due to competition from other blockchain projects.
4. TWIN Foundation Global Trade (2026)
Overview: Following pilot projects in East Africa, the TWIN Foundation aims to expand IoT-based trade solutions to Commonwealth countries (CoinRank). These solutions focus on tracking cargo and creating digital product passports.
What this means: If regulatory partnerships are secured, this could boost IOTA’s real-world use. However, political risks and slow adoption in emerging markets could delay results.
5. Lukka Compliance Integration (Q4 2025)
Overview: After partnering with Lukka (July 2025), IOTA will integrate real-time AML and KYC tools. This will help exchanges list IOTA more easily and support institutional adoption.
What this means: This is good news for liquidity and attracting institutional investors, though relying on third-party compliance tools carries some integration risks.
Conclusion
IOTA’s roadmap balances technical improvements like decentralized identity and validator growth with practical adoption efforts in trade and compliance. The success of these plans depends on effective governance and strong partnerships. The big question: will the TWIN Foundation’s global trade projects unlock IOTA’s full potential in the IoT space by 2026?
What updates are there in the IOTA code base?
IOTA’s software is actively being improved with a focus on making the network faster, more secure, and better suited for business use.
- Starfish Consensus Protocol (September 10, 2025) – An experimental upgrade designed to make the network more resilient during attacks or heavy traffic.
- IOTA Hierarchies Alpha (August 19, 2025) – A new system to manage trust and permissions across organizations and devices, helping with identity and compliance.
- Mainnet Node v1.4.1 (August 14, 2025) – Increased the number of validators and improved transaction speed with a new algorithm.
Deep Dive
1. Starfish Consensus Protocol (September 10, 2025)
What it is: This upgrade introduces a new way for the network to agree on transactions by separating how data is shared and confirmed. This reduces delays, especially when the network is under stress, like during cyberattacks or network splits. It’s still being tested and not yet live.
Why it matters: This improvement is promising for IOTA because it helps ensure transactions stay fast and reliable even in challenging conditions. This is important for real-world Internet of Things (IoT) applications, where devices need to communicate quickly and securely.
(Source)
2. IOTA Hierarchies Alpha (August 19, 2025)
What it is: This feature allows organizations to set clear rules about who can do what within their network—like issuing credentials or managing identities. It supports a mix of on-chain (blockchain) and off-chain validation, making it flexible for industries with strict regulations, such as healthcare or supply chain management.
Why it matters: This adds value for businesses considering IOTA, but its success depends on how many developers adopt it and how well it integrates with existing identity solutions like IOTA Identity.
(Source)
3. Mainnet Node v1.4.1 (August 14, 2025)
What it is: This update increased the number of validators from 50 to 80 and introduced the IIP-3 sequencer algorithm, which speeds up transaction processing.
Why it matters: More validators mean the network is less centralized and more secure. Faster transaction speeds support growing use cases like decentralized finance (DeFi) and tokenizing assets. For example, Klever, a major validator, joined after this upgrade, showing growing institutional interest.
(Source)
Conclusion
IOTA’s latest updates focus on making the network scalable and ready for business needs, especially in regulated industries. While these technical improvements are important, their real impact will depend on how quickly developers use these tools to build practical IoT and trading solutions.
Why did the price of IOTA fall?
IOTA (IOTA) dropped 0.25% in the last 24 hours to $0.187, underperforming the overall crypto market, which was mostly flat with a 0.3% gain. This decline is driven by technical weakness, slowing momentum from the recent Rebased upgrade, and low trading activity that makes price moves more extreme.
- Technical weakness – Price fell below important moving averages
- Adoption slowdown – Network activity isn’t keeping up with the peak $36 million staked value
- Low liquidity – Trading volume dropped 28% to $12.8 million, making price swings more volatile
Deep Dive
1. Technical Weakness (Bearish Signals)
What’s happening: IOTA’s price is trading below its 7-day average ($0.1908) and 30-day average ($0.1927), which are key indicators traders watch. The MACD indicator shows negative momentum, and the RSI (Relative Strength Index) is between 41 and 47, meaning it’s not oversold yet and could still fall further.
What this means: When prices fall below these moving averages, it often signals to traders that selling pressure is increasing. Since the RSI isn’t showing oversold conditions, buyers aren’t rushing in yet. The MACD’s negative reading suggests short-term downward momentum. The immediate support level is around $0.1876—if the price drops below this, it could fall further to the next key level at $0.18755.
2. Adoption Slowdown (Mixed Impact)
What’s happening: IOTA’s Total Value Locked (TVL), which measures how much value is staked in the network, reached a high of $36 million on August 17, a 260% increase from the previous month. However, the number of network transactions dropped 30% to about 780,000 in late August. The Rebased upgrade offered a 13% staking reward, attracting investors, but actual network use hasn’t grown as expected.
What this means: High staking rewards can attract investors looking for returns rather than users who actively use the network. This “soft capital” can leave the price vulnerable when rewards decrease or when other projects offer better opportunities.
3. Low Liquidity (Bearish Impact)
What’s happening: Trading volume for IOTA fell 28% to $12.8 million in 24 hours, with turnover (volume relative to market cap) at just 1.7%. Healthy markets usually have turnover between 2% and 5%. This drop happened alongside a 45% decrease in overall crypto trading volume.
What this means: When fewer people are trading, even small sell orders can cause bigger price drops because there aren’t enough buyers to absorb the sales. This low liquidity coincides with Bitcoin’s market dominance rising to nearly 57%, indicating investors are moving money out of altcoins like IOTA and into Bitcoin.
Conclusion
IOTA’s recent price drop reflects weakening technical indicators and fading excitement from the May Rebased upgrade, combined with broader liquidity challenges in the altcoin market. While staking growth shows some investor interest, a lasting price recovery will likely depend on increased real network usage.
What to watch: Can IOTA maintain support at $0.187? Will the planned increase in network validators from 50 to 80 in September help boost transaction activity? For real-time updates, check the IOTA Dashboard.