Why did the price of IOTA go up?
IOTA (IOTA) surged 13.25% in the past 24 hours, outperforming the overall crypto market’s 4.99% gain. Here’s why:
- Binance Staking Launch – New locked staking products offering nearly 30% APR attracted buyers.
- Oversold Technicals – The Relative Strength Index (RSI) bounced back from very low levels.
- Regulatory Progress – New compliance tools made IOTA more appealing to institutional investors.
In-Depth Analysis
1. Binance Staking Incentives (Positive for Price)
What happened: On October 1, Binance introduced IOTA Locked Products, allowing users to stake IOTA for 120 days with an annual percentage rate (APR) up to 29.9%. This limited-time offer encouraged many to buy and lock up their IOTA tokens.
Why it matters: High staking rewards encourage holders to keep their tokens locked, which lowers the number of coins available for sale. This reduced supply helps push prices higher. The 24-hour trading volume dropped by 55.82%, indicating fewer tokens are being traded freely. This supports price gains from new buyers entering the market. Also, staking fits well with IOTA’s move toward decentralized finance (DeFi) features after its recent Rebased upgrade.
What to watch: Keep an eye on how many people subscribe to these staking products and whether Binance changes the APR rates after the initial launch.
2. Technical Rebound (Mixed Signals)
What happened: On October 11, IOTA’s 14-day RSI—a measure of whether an asset is overbought or oversold—fell to 29.31, its lowest since May 2025, signaling it was oversold. The price then bounced above a key support level at $0.14, attracting short-term traders.
Why it matters: When an asset is oversold, it often leads to a price rebound. However, the Moving Average Convergence Divergence (MACD) indicator remains negative (-0.00301), showing weak momentum. The recent price increase happened with lower trading volume ($37.8 million) compared to the weekly average ($85.7 million), which raises questions about how sustainable the rally is.
Key level to watch: If IOTA closes above its 7-day simple moving average (SMA) at $0.173, it could signal a stronger trend reversal.
3. Regulatory Progress (Positive for Institutional Interest)
What happened: On October 12, IOTA launched its Trust Framework, which includes anti-money laundering (AML) and know-your-customer (KYC) tools developed with Lukka, plus notarization features. This framework supports enterprise use cases like trade finance and Internet of Things (IoT) applications.
Why it matters: Having strong compliance tools makes it easier for institutional investors to adopt IOTA, especially for real-world asset (RWA) projects. Partnerships such as the TWIN Foundation’s trade pilots add credibility and show practical use cases.
Conclusion
IOTA’s recent price jump is driven by a combination of staking demand, technical buying signals, and progress toward meeting institutional requirements. However, the rally’s strength is uncertain due to low trading volume and some lingering technical risks, including a 21% drop in market cap dominance over the past 30 days.
What to watch next: Can IOTA maintain prices above $0.16 if Bitcoin’s market dominance rises from 58.66%? Also, monitor how staking participation evolves and any new partnership announcements in the fourth quarter.
What is expected in the development of IOTA?
IOTA is making progress with several key projects:
- TWIN Foundation Launch (Q4 2025) – Expanding trade infrastructure across the UK and Commonwealth countries.
- Real-World Asset (RWA) Tokenization Framework (2025) – Enabling secure and compliant digital representation of physical assets through decentralized finance (DeFi).
- Trust Framework Improvements (2026) – Upgrading tools for digital identity, organizational structures, and notarization.
In-Depth Look
1. TWIN Foundation Launch (Q4 2025)
What it is:
The Trade Worldwide Information Network (TWIN) is built on IOTA’s technology to simplify international trade by using Internet of Things (IoT) devices to track goods in real time. After successful pilot programs in Kenya and the UK, the plan is to expand this system to other Commonwealth countries by the end of 2025. The goal is to reduce delays and improve compliance with environmental and social standards (IOTA Foundation).
Why it matters:
This development could encourage businesses to adopt IOTA’s technology for trade, which would be a big win. However, challenges like getting regulatory approval and onboarding partners could slow progress.
2. Real-World Asset (RWA) Tokenization Framework (2025)
What it is:
IOTA is partnering with Lukka to add real-time anti-money laundering (AML) and know-your-customer (KYC) checks to its network. This allows physical assets—like commodities or trade finance products—to be securely represented as digital tokens. This opens the door for decentralized finance platforms, such as Virtue Money’s vUSD stablecoin, to expand into real-world assets (Lukka Partnership).
Why it matters:
This is promising because more institutions are interested in tokenizing real assets. Still, competition from other blockchain platforms like Ethereum and Solana means IOTA needs to attract developers quickly to stay competitive.
3. Trust Framework Improvements (2026)
What it is:
IOTA is upgrading its digital identity system (IOTA Identity v2.0) and adding features for managing organizational hierarchies and notarization. These tools are designed for industries like healthcare, supply chains, and IoT, helping to create trusted, programmable digital relationships. Modular updates are planned throughout 2026 (IOTA Identity).
Why it matters:
These upgrades could increase IOTA’s usefulness, but success depends on other companies integrating these tools. If developers don’t adopt them or if older systems cause technical problems, adoption could be slower.
Summary
IOTA’s roadmap focuses on building real-world trade infrastructure, enabling compliant digital asset tokenization, and improving trust tools—all essential for attracting enterprise users. The key to success will be strong partnerships and staying flexible with technology.
How will changing regulations in the UK and EU affect IOTA’s plans for cross-border trade?
What updates are there in the IOTA code base?
IOTA's software is improving with stronger decentralization, better compliance tools, and upgraded identity features.
- Starfish Consensus Protocol (September 10, 2025) – An experimental system designed to make the network more reliable during tough conditions.
- Mainnet Protocol v10 Upgrade (August 14, 2025) – More validators added and a faster transaction processing method.
- IOTA Identity v1.6-beta (May 26, 2025) – A flexible identity system ready for businesses.
In-Depth Look
1. Starfish Consensus Protocol (September 10, 2025)
What it is: This new experimental protocol separates how transaction headers and data are shared, which helps reduce delays when the network is unstable. It’s not live on the main network yet.
The number of validators (those who confirm transactions) has increased by 60%, from 50 to 80, making the network more decentralized. Also, new tools let node operators customize how they handle data, improving flexibility.
Why it matters: This update is positive for IOTA because it sets the stage for handling more data and stronger performance, especially useful for Internet of Things (IoT) applications. Developers get better tools to manage their nodes efficiently.
(Source)
2. Mainnet Protocol v10 Upgrade (August 14, 2025)
What it is: The network upgraded to Protocol Version 10, introducing IIP-3, which includes a more efficient way to process transactions faster.
The validator group grew to 80 members, improving decentralization. Node operators need to update their software to version 1.4.1 or higher to stay compatible.
Why it matters: While the upgrade might cause some short-term challenges, it’s a positive step for scaling the network. Users will eventually experience faster transactions as more people use IOTA.
(Source)
3. IOTA Identity v1.6-beta (May 26, 2025)
What it is: A new identity framework designed for businesses, offering unified APIs, multi-user control, and better tools for developers.
It includes examples in Rust and WebAssembly (WASM) that make it easier to build compliance solutions like Know Your Customer (KYC) and secure IoT device authentication. It works seamlessly with IOTA’s Move Virtual Machine (VM).
Why it matters: This is great news for businesses in supply chains and decentralized finance (DeFi). Developers can now build identity systems that comply with regulations like GDPR more easily.
(Source)
Conclusion
IOTA’s latest updates focus on making the network more scalable, compliant with regulations, and easier for developers to use—important factors for real-world IoT and trade applications. Although the price has been volatile recently (down 38.94% over 90 days), these technical improvements support partnerships like the TWIN Foundation’s efforts to digitize trade. The expansion of validators could be a key step toward making IOTA the foundation for machine-to-machine economies.
What could affect the price of IOTA?
IOTA is caught between promising technical updates and real-world market challenges.
- Ecosystem Growth (Positive) – New DeFi features and staking rewards could boost demand.
- Regulatory Environment (Mixed) – Partnerships for compliance help, but unclear rules create uncertainty.
- Competition (Negative) – Newer blockchains may overshadow IOTA’s focus on Internet of Things (IoT) applications.
Deep Dive
1. Ecosystem Momentum vs. Stagnation (Mixed Impact)
Overview:
In May 2025, IOTA’s Rebased upgrade introduced staking with a 13.47% annual yield and DeFi tools like Swirl LSP (holding $17 million in value) and the vUSD stablecoin by Virtue Money. Despite these improvements, the number of active users dropped by 50% to 687 in July 2025 (DefiLlama), showing limited adoption so far.
What this means:
While high staking rewards (with nearly half of all tokens staked) might reduce selling pressure in the short term, the lack of new users could limit long-term price growth. Success in real-world asset (RWA) projects, like trade pilots by the TWIN Foundation, could improve market sentiment.
2. Regulatory Positioning & Institutional Adoption (Positive)
Overview:
IOTA became the first distributed ledger technology (DLT) to get licensed in Abu Dhabi’s ADGM in 2023 and partnered with Zodia Custody (backed by Standard Chartered) in June 2025. It also integrated Lukka’s tools for anti-money laundering (AML) compliance.
What this means:
These steps make IOTA a strong candidate for trade finance applications—a market worth $2.5 trillion. However, inconsistent crypto regulations worldwide (FCA response) could slow down adoption by large companies.
3. Technical Weakness vs. Macro Recovery (Negative/Neutral)
Overview:
Despite the Rebased upgrade, IOTA’s price is still 41% below its May 2025 peak. The Relative Strength Index (RSI) is low at 29.31, indicating the coin is oversold, but the Moving Average Convergence Divergence (MACD) remains negative. Binance’s locked staking offering a 29.9% annual percentage rate from October to December 2025 might create some short-term buying interest.
What this means:
If Bitcoin continues to dominate the market (currently at 58.72% dominance), alternative coins like IOTA may struggle to gain momentum. To signal a positive trend change, IOTA needs to break above the $0.172 resistance level.
Conclusion
IOTA’s future price depends on turning its technical upgrades into real-world use, especially in trade finance and regulated DeFi. Keep an eye on trade volumes from the TWIN Foundation’s East Africa projects through the end of 2025. The big question: can attractive staking rewards keep developers from moving to newer blockchains like Sui?
What are people saying about IOTA?
The IOTA community is balancing excitement about new technology with cautious trading decisions. Here’s what’s currently happening:
- Governance votes to fund ecosystem growth
- Alpha software releases aimed at business use
- Trading signals targeting price levels between $0.21 and $0.27
Deep Dive
1. @iota: Governance vote for ecosystem growth mixed
“Proposal SGP-0012: Go All-In on IOTA Infrastructure with Tangle DAO”
– August 12, 2025 · 42.3K impressions · View original post
What this means: The community is divided. Funding proposals show a long-term commitment to IOTA’s development, but low voter turnout—common in these votes—could weaken the impact and dilute influence.
2. @iota: IOTA Hierarchies Alpha launch bullish
“Model trust relationships for IoT/enterprises – now live on Mainnet”
– August 19, 2025 · 88.1K impressions · View original post
What this means: Positive news for business adoption. This update helps verify data workflows in supply chains, a key use case for IOTA in the Internet of Things (IoT) space.
3. CryptoSignal Trader: $0.21 breakout setup bullish
“Entry: 0.2080–0.2090 | Targets up to 0.2150 | SL: 0.2040”
– August 17, 2025 · 5.2K views · View post
What this means: Technical indicators suggest a positive price move. This matches IOTA’s recent 13.7% price increase over 24 hours, although resistance at $0.172 (a key level from May 2025) has yet to be tested.
4. @klever_org: New validator partnership neutral
“Klever joins IOTA as validator to strengthen Web3 bridges”
– August 19, 2025 · 21.4K impressions · View original post
What this means: This partnership improves network security but doesn’t directly impact IOTA’s recent 28.5% price drop over the past 90 days.
5. @iota: HoudiniSwap listing bullish
“Swap into IOTA with low fees via new DEX integration”
– August 19, 2025 · 36.7K impressions · View original post
What this means: Good news for liquidity. The new decentralized exchange (DEX) integration lowers costs for investors, even though IOTA’s 24-hour trading volume is down 56% weekly at $37.4 million.
Conclusion
The overall outlook on IOTA is mixed. While infrastructure improvements are encouraging, there’s uncertainty about whether the price will keep rising. Developers are excited about new tools for businesses, but traders are watching the $0.172 to $0.208 price range closely for signs of a trend change. Keep an eye on the Tangle DAO governance vote results expected by August 27—strong participation could bring new investment into the ecosystem.
What is the latest news about IOTA?
IOTA is seeing a mix of exchange incentives and ecosystem challenges as its growth slows. Here are the key updates:
- Binance Locked Products Update (October 1, 2025) – Staking rewards up to 29.9% APR encourage holders to lock their IOTA tokens for 30 to 120 days.
- Valour ETP Launch in Sweden (September 24, 2025) – Nordic investors get regulated access to IOTA through new exchange-traded products.
- Ecosystem Growth Slows (October 1, 2025) – Developer activity and decentralized finance (DeFi) use remain low, raising concerns about IOTA’s future growth.
In-Depth Look
1. Binance Locked Products Update (October 1, 2025)
What happened:
Binance now offers IOTA staking through its Simple Earn Locked Products, with annual percentage rates (APRs) ranging from 16.9% to 29.9% depending on how long tokens are locked (30 to 120 days). This offer lasts until December 29, 2025, and requires users to keep their IOTA on Binance.
Why it matters:
This update is neutral for IOTA’s outlook. On one hand, it may reduce selling pressure by encouraging holders to lock up their tokens. On the other hand, the high rewards might attract short-term investors looking for quick gains rather than long-term supporters. The real benefit depends on whether users stay engaged beyond the promotion.
(Binance)
2. Valour ETP Launch in Sweden (September 24, 2025)
What happened:
Valour introduced IOTA as one of 13 new exchange-traded products (ETPs) on Sweden’s Spotlight Stock Market. This gives investors in Nordic countries a regulated way to invest in IOTA. The ETP charges a 1.9% management fee.
Why it matters:
This is a positive development for IOTA. Institutional and conservative investors often prefer regulated products like ETPs, which could bring more stable capital. However, similar tokens have seen modest price drops (around 10%) after launch, so immediate price gains may be limited. Long-term success depends on overall market interest.
(Yahoo Finance)
3. Ecosystem Growth Slows (October 1, 2025)
What happened:
Despite a 23% increase in price year-over-year, IOTA’s ecosystem shows signs of stagnation. Wallet growth is flat, and decentralized finance (DeFi) activity remains minimal. Daily trading volume is about $4.47 million, mostly in USDT pairs, indicating weak organic demand. Meanwhile, newer blockchain platforms like SUI are gaining more attention.
Why it matters:
This is a warning sign for IOTA. Without more developers building on the network or more users adopting its services, IOTA risks losing market relevance. Large holders (whales) are supporting a price floor between $0.15 and $0.17, which may prevent sharp drops but won’t drive growth by itself.
(Yahoo Finance)
Conclusion
IOTA is balancing incentives from exchanges and new institutional products against a slowing ecosystem. While staking rewards and ETPs provide short-term support, the lack of growth in developer activity and DeFi use raises questions about its long-term prospects. The future may depend on real-world projects like Salus’ mineral tokenization to help IOTA stay competitive against faster-moving blockchain platforms.