What is expected in the development of IOTA?
IOTA’s development is progressing with these key milestones:
- TWIN Foundation U.S. Expansion (Q4 2025) – Rolling out cross-border trade solutions in collaboration with major institutions.
- RWA Tokenization Pilots (2026) – Creating digital tokens for real-world assets such as commodities and trade finance.
- Tangle DAO Phase 2 (Q4 2025) – Growing decentralized governance and funding for ecosystem projects.
Deep Dive
1. TWIN Foundation U.S. Expansion (Q4 2025)
Overview: The TWIN Foundation, launched with partners like the World Economic Forum and TradeMark Africa, plans to bring IOTA’s trade technology to the U.S. This includes using Internet of Things (IoT) devices to track supply chains and create digital trade routes. The goal is to cut cross-border trade costs by up to 80% (Yahoo Finance).
What this means: This is a positive sign for IOTA, as adoption by large institutions can increase the network’s usefulness. However, challenges like government regulations and competition from existing systems remain.
2. RWA Tokenization Pilots (2026)
Overview: IOTA is partnering with companies like Zodia Custody (supported by Standard Chartered) to turn physical assets—such as rare minerals and trade finance products—into digital tokens. This effort builds on IOTA’s MoveVM smart contract technology (Indodax).
What this means: This development has a neutral to positive outlook. Its success depends on clear regulations and demand for tokenized assets. If successful, it could improve staking rewards and market liquidity.
3. Tangle DAO Phase 2 (Q4 2025)
Overview: After community approval of proposal SGP-0012, this next phase will focus on funding projects within the IOTA ecosystem, rewarding network validators, and enhancing decentralized governance tools (IOTA Governance Vote).
What this means: This is good news for long-term decentralization, though it might cause some short-term market fluctuations as governance decisions take effect.
Conclusion
IOTA’s roadmap highlights practical use cases like trade infrastructure, asset tokenization, and community-led governance. With foundational upgrades like the Rebased Mainnet completed in May 2025, these upcoming projects aim to connect blockchain technology with global commerce. The impact of regulatory changes in major markets like the U.S. and EU will be important to watch as these plans unfold.
What updates are there in the IOTA code base?
IOTA's software is actively evolving with new protocol experiments and improved developer tools.
- Starfish Consensus (Sept 10, 2025) – A new experimental upgrade aimed at making the network more resilient under tough conditions.
- Wallet v1.3.0 (Sept 3, 2025) – Fixed issues with NFT forms and improved compatibility with digital identity tools.
- CLI Expansion (Aug 27, 2025) – Added options for easier data export and integrated identity management features.
In-Depth Look
1. Starfish Consensus (September 10, 2025)
What it is: This update, included in Mainnet version 1.6.1, changes how data moves through the network. Instead of sending full blocks all at once, nodes first share smaller block headers. This lets the network start processing important decisions faster, especially when connections are slow or unstable.
Right now, this feature is being tested internally but is expected to roll out to public test networks soon.
Why it matters: This is a positive sign for IOTA because it shows ongoing research to make the network more reliable. Reliability is crucial for businesses and Internet of Things (IoT) devices that need constant, uninterrupted service. (Source)
2. Wallet v1.3.0 (September 3, 2025)
What it is: This update fixes bugs related to NFT (non-fungible token) forms, especially when dealing with long asset names. It also improves how the wallet works with the IOTA-Names software development kit (SDK) version 0.3.0, which helps manage digital identities.
The update also standardizes how amounts are handled in the wallet’s code and updates documentation to match the latest network APIs.
Why it matters: While this doesn’t have an immediate big impact, it makes life easier for developers building NFT marketplaces or identity solutions on IOTA. (Source)
3. CLI Expansion (August 27, 2025)
What it is: The command-line interface (CLI) now supports exporting data in JSON format, which is easier for automated tools to read. It also includes IOTA-Names tools directly in the node software, simplifying management of decentralized identifiers (DIDs) from the terminal.
Why it matters: This update is great news for node operators and developers, as it reduces manual work involved in monitoring the network and managing digital identities. (Source)
Conclusion
IOTA is making steady progress on two fronts: improving the core network protocol with innovations like Starfish Consensus, and enhancing developer tools for a smoother ecosystem experience. These improvements suggest IOTA is gearing up for wider adoption in enterprise and IoT sectors. It will be interesting to see how these behind-the-scenes upgrades impact real-world network activity in the coming months.
Why did the price of IOTA go up?
IOTA (IOTA) increased by 1.17% in the past 24 hours, which is less than the overall crypto market’s 3.08% gain. This rise comes amid mixed signals:
- ETP Listing Boost – IOTA was added to Valour’s new exchange-traded products (ETPs) on Sweden’s Spotlight Stock Market on September 24, 2025, giving it more exposure to institutional investors.
- Technical Bounce – The Relative Strength Index (RSI) shows IOTA is oversold at 37.7, and its price is near a key support level at $0.158, encouraging short-term buying.
- Improved Compliance – IOTA integrated with Lukka’s AML/KYC tools on July 22, 2025, making it more attractive for businesses needing strong regulatory compliance.
Deep Dive
1. Regulated Access Through ETPs (Positive for IOTA)
On September 24, 2025, Valour launched 13 new ETPs on Sweden’s Spotlight Stock Market, including IOTA and other infrastructure tokens like Optimism and Immutable. These ETPs have a 1.9% management fee and are priced in Swedish Krona (SEK), making it easier for Nordic investors to buy in.
Why it matters:
ETP listings usually increase trading activity and visibility, attracting investors who prefer regulated products. However, IOTA’s price only rose 1.17%, less than the overall market’s 3.08%, suggesting that immediate buying interest was limited.
What to watch:
Keep an eye on trading volumes for these new ETPs. If volumes stay high, it could mean growing demand for IOTA.
2. Technical Indicators Show Mixed Signals
IOTA’s 14-day RSI is at 37.7, close to the oversold threshold, and its price is near the 78.6% Fibonacci retracement level at $0.168. The MACD indicator shows bearish momentum, but a 44.8% increase in 24-hour trading volume suggests some buyers are stepping in.
Why it matters:
After a 12.9% drop over the past month, some traders see IOTA as undervalued and are buying at these lower prices. However, resistance is expected around the 7-day simple moving average (SMA) at $0.1672. If IOTA’s price closes above this level consistently, it could signal a positive trend reversal.
Key level to watch: $0.1672 SMA – breaking and holding above this may attract more buyers.
3. Stronger Compliance Tools Support Long-Term Growth
IOTA partnered with Lukka on July 22, 2025, to integrate advanced anti-money laundering (AML) and know-your-customer (KYC) tools directly into its platform. This helps overcome regulatory hurdles that often slow down enterprise adoption. This move aligns with IOTA’s focus on real-world applications like trade finance and tokenizing assets, such as Salus’ $100 million goal for mineral tokenization.
Why it matters:
While this development doesn’t immediately impact daily price moves, it improves IOTA’s appeal to institutional investors and could boost demand as real-world use cases expand.
Conclusion
IOTA’s modest 1.17% gain over 24 hours reflects a mix of short-term technical buying and strategic positioning thanks to its regulatory improvements. However, stronger overall market gains limited its outperformance.
What to watch next: Whether the new ETP listings lead to sustained buying pressure that pushes IOTA’s price above the $0.167 SMA level.
What could affect the price of IOTA?
IOTA’s future depends on how well it’s adopted, upcoming technology upgrades, and overall market conditions.
- Adoption & Partnerships – Real-world trade projects and tools for institutions
- Staking Trends – Nearly half of IOTA’s supply is staked, balancing rewards with liquidity risks
- Regulatory Environment – Progress in UK and EU compliance, but global rules remain uncertain
- Technology Upgrades – New smart contract platform and more validators
Deep Dive
1. Adoption & Partnerships (Mixed Impact)
Overview: IOTA’s Trade Worldwide Information Network (TWIN), supported by the World Economic Forum and the Tony Blair Institute, aims to cut trade costs by up to 80% by sharing data in a decentralized way. Pilot programs in Kenya and the European Union show promise, but widespread adoption will take time. Additionally, IOTA’s partnership with Lukka (Lukka) offers compliance tools designed for institutions, which could help IOTA get listed on more exchanges.
What this means: If TWIN succeeds, it could increase demand for IOTA by creating real-world use cases. However, delays in adoption by businesses might limit price gains in the short term.
2. Staking Trends (Positive Impact)
Overview: About 48.8% of IOTA’s total supply—worth roughly $389 million—is currently staked, earning around 12% annual returns. This reduces the number of coins available for sale. Liquid staking through stIOTA lets users trade their staked tokens while still earning rewards, though the total value locked ($17 million) is relatively small compared to competitors.
What this means: High staking levels can reduce selling pressure and support prices, but if staking rewards drop or many users unstake at once, it could cause price swings.
3. Regulatory Environment (Potential Risk)
Overview: IOTA is working with groups like INATBA and Cardano to promote balanced crypto regulations. However, the UK’s Financial Conduct Authority (FCA) is considering stricter rules, and the U.S. Securities and Exchange Commission (SEC) has not yet decided if IOTA is a security (FCA response).
What this means: Clearer regulations in major markets like the EU and UK could encourage institutional investment. On the other hand, unfavorable rulings might lead to significant sell-offs, similar to the 41% price drop after the May 2025 upgrade.
4. Technology Upgrades (Positive Impact)
Overview: The August 2025 Rebased upgrade increased the number of validators to 80 and introduced MoveVM, a new platform for scalable smart contracts. Daily transactions reached 779,000 in August, a 30% increase from the previous month. However, developer activity has remained steady without significant growth since the upgrade.
What this means: Improvements in transaction speed (up to 50,000 transactions per second) and new modular tools like Notarization and Hierarchies could attract more developers. Sustained growth depends on continued developer engagement.
Conclusion
IOTA’s price is influenced by its progress in enterprise adoption and broader market challenges. Key things to watch include the expansion of TWIN pilot projects in Q4 and the SEC’s decision on IOTA’s regulatory status. In the near term, breaking above $0.172 (the May high) could signal positive momentum, while falling below $0.145 might lead to testing yearly lows.
Key metric to watch: Monthly active addresses, currently at 8,376, to gauge real user growth on the network.
What are people saying about IOTA?
The IOTA community is buzzing with a mix of technical signals, ecosystem growth, and cautious optimism. Here’s what’s trending:
- Traders are watching for a breakout above $0.17 after some positive setups and a 52% profit call in spot trading.
- Institutional interest is growing thanks to Lukka’s compliance tools and the listing of HoudiniSwap.
- Community governance votes are pushing for expansion of IOTA’s infrastructure.
Deep Dive
1. @CryptoSignals: Bullish trade setup targets $0.215
“IOTA is holding above $0.208 support – profit targets at $0.211, $0.213, and $0.215, with a stop loss at $0.204.”
– Anonymous trader (8.5M+ impressions · Aug 17, 2025, 04:29 UTC)
View original post
What this means: Traders are showing short-term confidence, though the price dipped 1.77% over the past week, indicating some volatility.
2. @iota: Lukka integration boosts compliance
“Real-time anti-money laundering (AML) and know-your-customer (KYC) tools have been added to IOTA’s protocol to support tokenization of real-world assets and enterprise use.”
– IOTA Official (289K followers · Jul 26, 2025, 13:00 UTC)
View original post
What this means: This is a positive step for attracting institutional investors, supporting the 14.32% annual price gain despite recent dips.
3. @iota: Tangle DAO proposal drives ecosystem growth
“Vote SGP-0012 aims to fund IOTA infrastructure through community governance.”
– IOTA Official (289K followers · Aug 20, 2025, 14:00 UTC)
View original post
What this means: This shows progress toward decentralization and community control, but success depends on voter participation and how well the plan is executed.
Conclusion
The overall outlook on IOTA is cautiously optimistic, fueled by trader momentum and real-world use cases, but tempered by challenges related to network upgrades. Watch the $0.17 resistance level closely — breaking above it could confirm a bullish trend, while failure might lead to testing support around $0.14. Also, keep an eye on decentralized finance (DeFi) activity like Swirl’s $15.6 million total value locked (TVL) for signs of growing adoption.
What is the latest news about IOTA?
IOTA is making strides by balancing interest from big institutions with practical, real-world uses. Here are the latest updates:
- ETP Launch in Sweden (September 24, 2025) – IOTA is now part of regulated crypto exchange-traded products (ETPs) available to investors in the Nordic region.
- Salus DeFi Platform (September 10, 2025) – A new platform on IOTA’s network is helping to tokenize mineral exports from Rwanda.
- Binance Collateral Reduction (September 1, 2025) – Binance lowered the collateral requirement for IOTA from 50% to 35%.
In-Depth Look
1. ETP Launch in Sweden (September 24, 2025)
What happened: Valour, a company under DeFi Technologies, added IOTA to 13 new crypto ETPs on Sweden’s Spotlight Stock Market. These ETPs let Nordic investors buy into regulated crypto assets like IOTA, alongside popular meme coins. The management fee is 1.9%, and all prices are in Swedish Krona (SEK).
Why it matters: This move is positive for IOTA because it shows growing acceptance by institutional investors and opens up more regulated investment options. However, the crypto ETP market is still small, and some meme coins included have not performed well after launch. (Yahoo Finance)
2. Salus DeFi Platform (September 10, 2025)
What happened: Salus launched a decentralized finance (DeFi) platform on IOTA’s network to tokenize important mineral exports, starting with tantalum from Rwanda to the U.S. This project aims to address a $2.5 trillion funding gap in global mineral trade by using smart contracts to make trade finance more transparent and efficient.
Why it matters: This development is somewhat positive for IOTA because it demonstrates a practical use case in supply chain finance. Its success depends on whether miners and buyers adopt the platform, but it fits with a growing trend toward tokenizing real-world assets. (Crypto.News)
3. Binance Collateral Reduction (September 1, 2025)
What happened: Binance lowered the collateral ratio for IOTA in its Portfolio Margin system from 50% to 35%, effective September 5. This means traders need to put up less collateral to borrow against IOTA, but it also reduces the amount of leverage they can use.
Why it matters: This is a short-term negative because it may discourage traders who use high leverage. However, it’s more about Binance adjusting its risk policies than a change in IOTA’s fundamental value. (Binance)
Conclusion
IOTA is making progress by focusing both on institutional investment channels like ETPs and real-world applications such as mineral trade finance. While gaining regulatory approval and practical adoption are positive signs for the long term, changes like Binance’s collateral adjustment highlight the volatility and risks in the crypto market. The key question is whether IOTA’s partnerships in trade finance can overcome broader market challenges in the coming months.