Why did the price of IOTA go up?
IOTA (IOTA) increased by 0.73% in the last 24 hours, matching a 12.7% gain over the past week. However, it slightly lagged behind the overall cryptocurrency market, which rose by 1.68%. Here are the main reasons behind this movement:
- Binance Staking Launch – New high-yield locked investment options offering up to 29.9% annual returns attracted more buyers.
- Technical Breakout – The price moved above important average price levels, indicating positive momentum.
- Market Sentiment Shift – Investors showed a neutral to positive interest in alternative cryptocurrencies, with stable trading conditions.
Deep Dive
1. Binance Staking Incentives (Positive Impact)
Overview: On October 1, Binance launched IOTA Locked Products, which offer annual percentage rates (APR) between 16.9% and 29.9%. This attracted investors looking for high returns (Binance).
What this means: These staking options encourage people to buy and hold IOTA instead of selling it right away. Since there are 4.6 billion IOTA coins in total and 4.07 billion currently available for trading, even small increases in demand can have a noticeable effect on the price, especially because IOTA’s market isn’t very liquid.
What to watch: There are limits on how much can be staked, and the high APR rates may change after December 29, 2025.
2. Technical Rebound (Mixed Impact)
Overview: IOTA’s price ($0.187) recently rose above its 7-day simple moving average (SMA) of $0.174 and exponential moving average (EMA) of $0.178. The Relative Strength Index (RSI) at 57.62 suggests there’s still room for the price to go up before it becomes overbought.
What this means: Short-term traders might see this as a signal that the price could continue rising, especially since the Moving Average Convergence Divergence (MACD) indicator turned positive. However, the 200-day EMA at $0.199 is a key resistance level. If the price breaks above $0.19, it could lead to more buying activity.
3. Altcoin Rotation & Market Conditions (Neutral Impact)
Overview: The Altcoin Season Index, which measures how well alternative cryptocurrencies are doing compared to Bitcoin, stayed at 65, up 30% over the past month. Meanwhile, total open interest in crypto derivatives increased by 1.95% to $1.14 trillion.
What this means: IOTA’s trading volume jumped 18.4% to $31.5 million, growing faster than its market cap (+0.75%), showing increased speculative interest. However, Bitcoin still dominates the market with a 58.23% share, which limits how much altcoins like IOTA can rally.
Conclusion
IOTA’s recent price increase is mainly driven by Binance’s staking program and positive technical signals. However, the overall market remains cautious. The key question is whether IOTA can stay above the 200-day EMA at $0.19 to confirm a lasting upward trend, or if the excitement around staking will fade, leading to profit-taking.
What could affect the price of IOTA?
IOTA’s future price depends on staking rewards, real-world use, and how it competes with other altcoins.
- Staking Rewards (Mixed) – High annual returns (about 12%) encourage holding tokens, but people can unstake anytime, which might lead to selling.
- Institutional Adoption (Positive) – Partnerships and compliance tools could increase demand.
- Altcoin Market Competition (Negative) – Slower growth in decentralized finance (DeFi) compared to rivals like Solana could hurt IOTA’s relevance.
In-Depth Analysis
1. Staking Dynamics (Mixed Impact)
Overview:
Nearly half of all IOTA tokens (48.68%) are currently staked, meaning about 2.3 billion tokens worth $425 million are locked up, earning an average annual return of 11.96%. This reduces the number of tokens available for trading, which can support the price. However, since unstaking is open to anyone at any time, there’s a risk that many holders might sell their tokens all at once. Binance recently introduced new locked staking options offering up to 29.9% annual returns, which could temporarily increase demand but might lower rewards over time.
What this means:
If staking stays high, it could create a supply squeeze that supports prices. But if staking rewards drop or many people unstake at once, it could lead to selling pressure. Additionally, the system rewards validators with about 767,000 IOTA tokens per epoch (around $144,000), which adds a slow but steady increase in token supply that might push prices down.
2. Real-World Adoption (Positive Impact)
Overview:
IOTA’s TWIN Foundation, supported by the World Economic Forum, is testing Internet of Things (IoT) based trade solutions in the UK and East Africa. They recently partnered with Lukka to provide institutional-grade anti-money laundering (AML) and know-your-customer (KYC) tools (IOTA Blog). They also launched a decentralized finance platform focused on critical minerals with Salus, showing growing interest from businesses.
What this means:
If these projects succeed—like the planned UK rollout by late 2025—they could prove IOTA’s value as a “feeless data and value layer,” attracting more institutional investors. However, real-world adoption often takes longer than the fast pace of crypto speculation.
3. Market Competition (Negative Impact)
Overview:
IOTA’s decentralized finance total value locked (TVL) is $36 million, which is much smaller than competitors like Solana ($4.1 billion) and Sui ($800 million). IOTA’s recent Rebased upgrade offers 50,000 transactions per second (TPS) and smart contracts via MoveVM, but Solana aims to reach over 100,000 TPS by late 2025 with its Alpenglow upgrade.
What this means:
Without a standout application—such as a leading real-world asset (RWA) platform—IOTA risks losing developer interest. Its daily trading volume of 23.68 million is low compared to Solana’s $2.1 billion, meaning less liquidity and higher price swings during market downturns.
Conclusion
IOTA’s price will likely depend on whether staking rewards and trade partnerships can overcome its smaller role in a crowded Layer 1 blockchain market. Keep an eye on the TWIN Foundation’s UK rollout and changes in the staking ratio after Binance’s new staking products launch—these events could trigger price volatility. The key question is whether IOTA can turn its focus on regulatory compliance into real growth or remain just a “potential” opportunity.
What are people saying about IOTA?
The IOTA community is optimistic about new technology upgrades but cautious about slower adoption. Here’s what’s happening:
- Excitement over Rebased upgrade – Offering 13% staking returns and reaching a $36 million total value locked (TVL) milestone
- Price uncertainty – Traders watch for a breakout above $0.27 or a drop below $0.14
- Exchange issues – Upbit temporarily stops deposits during network upgrade
- DeFi growth – Launch of IOTA’s first decentralized exchange (DEX) and stablecoin
In-Depth Look
1. @klever_org: Validator partnership is a positive sign
“🌍 Klever joins IOTA as validator – bridging ecosystems, not silos”
– @klever_org (28.4K followers · 12K impressions · 2025-08-19 12:01 UTC)
View original post
What this means: This partnership supports IOTA’s goal of decentralization by adding cross-chain validator support after the Rebased upgrade, which is a good sign for the network’s security and growth.
2. @CoinJournal: Mixed technical signals
“IOTA holds $0.16 support but stuck in descending triangle”
– CoinJournal (July 3, 2025) Source
What this means: The price is stable around $0.16 with a 55% increase in trading volume, indicating buyers are accumulating. However, if the price fails to rise above $0.17, it could fall by 18% to $0.14.
3. @Upbit: Temporary exchange disruptions
“Upbit suspends IOTA deposits/withdrawals during Rebased migration”
– Reported August 13, 2025 Source
What this means: Upbit paused deposits and withdrawals during the network upgrade, which may temporarily reduce liquidity and trading activity. This is a normal step during major upgrades. Trading continued at around $0.167 despite the suspension.
4. @Virtue_Money: DeFi adoption gains momentum
“vUSD stablecoin launches on IOTA with $5.5M locked in week one”
– Via Crypto.News (July 14, 2025) Source
What this means: The launch of the vUSD stablecoin on IOTA is a positive development, enabling users to lend and borrow with attractive 14% annual staking rewards. This boosts IOTA’s real-world use cases and ecosystem growth.
Conclusion
Opinions on IOTA are mixed. The technology upgrades like Rebased scalability and new DeFi tools are promising, but adoption is slower than hoped, with flat user activity and exchange challenges. Keep an eye on the $0.17 to $0.20 price range this week, as staking rewards and upgrade progress compete with risks from exchange-related outflows. The fact that 43% of IOTA’s supply is staked could mean strong long-term commitment or simply limited liquidity.
What is the latest news about IOTA?
IOTA is making moves in institutional adoption despite some market challenges. Here’s the latest update:
- Binance Launches High-Yield IOTA Locked Products (October 1, 2025) – Earn up to 29.9% APR by staking IOTA for fixed periods.
- IOTA ETPs Launch on Sweden’s Spotlight Market (September 24, 2025) – European investors can now access IOTA through regulated investment products.
- Salus Launches DeFi Mineral Trade Platform (September 10, 2025) – A new platform uses IOTA to digitize $500 billion worth of critical minerals trade.
In-Depth Look
1. Binance Launches High-Yield IOTA Locked Products (October 1, 2025)
What happened: Binance, one of the world’s largest cryptocurrency exchanges, introduced a staking program for IOTA. Users can lock their IOTA tokens for 120 days and earn up to 29.9% annual percentage rate (APR). This offer runs until December 29, 2025, and requires users to complete identity verification (KYC) and hold a minimum amount of IOTA. If users withdraw early, they face penalties, encouraging them to keep their tokens locked.
Why it matters: By locking up a large portion of IOTA tokens (currently about 4.07 billion in circulation), this program could reduce the number of tokens available for trading, potentially stabilizing the price. The recent 37% increase in 24-hour trading volume to $33.9 million shows growing interest, but it also means prices could become more volatile once the high APR ends.
(Binance)
2. IOTA ETPs Launch on Sweden’s Spotlight Market (September 24, 2025)
What happened: Valour, a digital asset manager, listed IOTA as part of a group of 13 Exchange-Traded Products (ETPs) on the Spotlight Stock Market in Stockholm. These ETPs allow Nordic investors to gain regulated exposure to cryptocurrencies, including meme coins like FLOKI and PEPE, as well as infrastructure tokens like IOTA. The products charge a 1.9% management fee.
Why it matters: This listing makes it easier for institutional and traditional investors in Europe to invest in IOTA. However, being grouped with highly volatile meme coins could affect IOTA’s reputation as a serious enterprise-focused project. Despite the news, IOTA’s price dropped 12.5% over the month, reflecting limited growth in decentralized finance (DeFi) activity, with total value locked (TVL) at just $9.76 million according to DefiLlama.
(Yahoo Finance)
3. Salus Launches DeFi Mineral Trade Platform (September 10, 2025)
What happened: Salus launched a decentralized finance (DeFi) platform on IOTA to tokenize tantalum exports from Rwanda to the U.S. This platform aims to address a $2.5 trillion gap in trade finance by using smart contracts for real-time tracking and payments via stablecoins.
Why it matters: This is a practical example of IOTA’s technology being used in real-world supply chains, aligning with its focus on the Internet of Things (IoT). However, the platform’s success depends on IOTA’s ability to handle large transaction volumes. Currently, IOTA processes about 209,000 transactions per week, which is much lower than competitors like Solana, which can handle millions per second. If successful, this project could renew developer interest and demonstrate IOTA’s potential in enterprise applications.
(Crypto.news)
Conclusion
IOTA is working to grow through high-profile exchange products and real-world trade finance projects, but on-chain activity remains slow. While Binance’s staking program and ETP listings improve liquidity and investor access, partnerships like Salus’s are crucial to proving IOTA’s unique technology advantages. The upcoming Moveathon Europe hackathon (October 20 to November 16) could be a key event to boost developer engagement and help IOTA break out of its current price range of $0.15 to $0.20.
What is expected in the development of IOTA?
IOTA’s development is moving forward with these key milestones:
- Moveathon Europe 2025 (Oct 20 – Nov 16) – A hackathon focused on creating Web3 solutions in finance, identity, and supply chains.
- TWIN Foundation Trade Rollout (Late 2025) – Launching blockchain-based trade tracking systems in the UK.
- MYRC Stablecoin Development (2026) – Building a Shariah-compliant stablecoin for Islamic finance markets.
- IOTA Network Fund Activation (Q4 2025) – A community-run fund to support ecosystem growth.
Deep Dive
1. Moveathon Europe 2025 (Oct 20 – Nov 16)
Overview:
This is a developer competition offering over $150,000 in prizes to build Web3 applications on IOTA’s feeless network. The main focus areas are decentralized finance (DeFi), digital identity, and supply chain transparency.
What this means:
This event could attract new developers and create practical uses for IOTA, especially in sustainability. However, success depends on ongoing support after the hackathon to keep projects moving forward.
2. TWIN Foundation Trade Rollout (Late 2025)
Overview:
The TWIN Foundation, working with global trade groups, plans to introduce Internet of Things (IoT) enabled cargo tracking in the UK, with plans to expand to other Commonwealth countries (IOTA Blog).
What this means:
If successful, this would strengthen IOTA’s position in modernizing trade logistics. Still, regulatory challenges around international data sharing could slow progress.
3. MYRC Stablecoin Development (2026)
Overview:
MYRC is a stablecoin project by Blox, designed to comply with Islamic finance rules and pegged to the Malaysian ringgit. It targets Islamic finance markets valued at over $3 trillion, pending regulatory approval (Tiger Research).
What this means:
This could boost IOTA’s adoption in Southeast Asia and the Middle East, but timing depends on Malaysia’s regulatory process. If compliant, it could unlock significant new liquidity in Islamic finance.
4. IOTA Network Fund Activation (Q4 2025)
Overview:
Following a community vote (SGP-0012), this decentralized fund will support infrastructure and growth projects, managed by the Tangle DAO (IOTA Governance Portal).
What this means:
This is a positive step toward decentralization and community involvement. However, the fund’s success depends on active participation from voters to avoid mismanagement.
Conclusion
IOTA’s roadmap focuses on engaging developers (Moveathon), expanding enterprise use (TWIN), innovating in finance (MYRC), and strengthening decentralized governance (Network Fund). These efforts aim to grow IOTA from a specialized Internet of Things protocol into a versatile platform for multiple industries.
Watch: Will regulatory approvals for MYRC and TWIN’s trade solutions allow IOTA to outpace competitors like Hedera?
What updates are there in the IOTA code base?
IOTA’s software is actively evolving with important upgrades focused on faster processing, better decentralization, and improved digital identity tools.
- Mainnet Node v1.6.1 (September 10, 2025) – Introduced an experimental Starfish consensus protocol to reduce delays.
- Protocol v10 Upgrade (August 14, 2025) – Expanded the number of validators and increased transaction capacity with IIP-3.
- Identity v1.6-beta (May 26, 2025) – Released a flexible, enterprise-ready digital identity system.
Deep Dive
1. Mainnet Node v1.6.1 (September 10, 2025)
Overview: This update added the Starfish consensus protocol, which aims to make the network more reliable, especially when facing challenges like network congestion or attacks. It does this by separating how block headers (summary info) and full data are shared across the network.
Technical Details: Starfish helps reduce delays by verifying block headers first before processing the entire block. The update also added customizable workers to help with data indexing and improved the network’s API to support more data types.
What this means: This is a positive step for IOTA, as it helps the network finalize transactions faster and more reliably. This improvement is especially important for Internet of Things (IoT) devices and businesses that need dependable performance. (Source)
2. Protocol v10 Upgrade (August 14, 2025)
Overview: This upgrade increased the number of validator nodes from 50 to 80 and introduced IIP-3, a new method for ordering transactions more efficiently.
Technical Details: Having more validators improves decentralization, making the network more secure and less controlled by a few participants. IIP-3 optimizes how transactions are processed, allowing the network to handle over 50,000 transactions per second. Node operators need to update their software to stay compatible.
What this means: This upgrade is generally positive, as it boosts IOTA’s ability to handle large volumes of transactions, which is crucial for industries like supply chain management. However, the real impact depends on how widely these improvements are adopted. (Source)
3. Identity v1.6-beta (May 26, 2025)
Overview: IOTA introduced a new digital identity framework designed for businesses, with features that support privacy laws like GDPR and allow multiple controllers to manage identities.
Technical Details: The update provides unified programming interfaces (APIs) across different platforms, making it easier for developers to build identity solutions without extra coding. It also integrates with hardware security modules (HSMs) for enhanced security.
What this means: This is a strong positive for IOTA, as it helps companies in regulated industries such as healthcare and finance comply with privacy requirements while managing digital identities efficiently. (Source)
Conclusion
IOTA’s recent updates focus on making the network faster, more decentralized, and practical for real-world business needs. The Starfish consensus and IIP-3 upgrades aim to deliver enterprise-level performance, while the new identity tools align with global privacy regulations. The key question is how these improvements will drive developer interest and partnerships across industries in the last quarter of 2025.