What is expected in the development of IOTA?
IOTA’s roadmap is focused on growing its use in businesses, building decentralized systems, and creating practical applications.
- TWIN Foundation Launch (Q4 2025) – Expanding trade solutions in the UK and Commonwealth countries.
- Trust Framework Growth (2026) – Scaling tools for identity, tokenization, and fee-free transactions.
- Protocol v11 Upgrade (Q1 2026) – Improving decentralization and transaction speed.
- DeFi Ecosystem Expansion (Ongoing) – Increasing liquidity through real-world asset finance integrations.
In-Depth Look
1. TWIN Foundation Launch (Q4 2025)
What it is: The Trade Worldwide Information Network (TWIN) is a project developed with the World Economic Forum and TradeMark Africa. It aims to make international trade smoother by using Internet of Things (IoT) technology to track goods in supply chains. After pilot programs in East Africa and the UK, the plan is to expand to other Commonwealth countries by late 2025.
Why it matters: This could increase IOTA’s real-world use, especially among large organizations. However, political and regulatory challenges might slow progress.
2. Trust Framework Growth (2026)
What it is: IOTA’s modular Trust Framework includes tools for digital identity, notarization, and tokenization. These tools are moving from early testing to ready-for-use products. Features like Gas Station (which removes transaction fees for users) and Hierarchies (which allow delegated control) will be more widely available.
Why it matters: These tools make it easier for businesses to adopt IOTA. Still, competition from other blockchain platforms like Polkadot and Hyperledger could limit its impact.
3. Protocol v11 Upgrade (Q1 2026)
What it is: Building on the v10 upgrade in August 2025, which increased the number of validators (network participants who confirm transactions) to 80, the v11 upgrade aims to raise this to 150 validators. It will also introduce a new sequencing method (IIP-4) to boost transaction speed beyond 50,000 transactions per second (TPS).
Why it matters: This upgrade will improve network security and speed. However, if adoption doesn’t grow as expected, rewards for staking IOTA (currently about 13% annual percentage yield) may decrease.
4. DeFi Ecosystem Expansion (Ongoing)
What it is: After the Rebased upgrade, IOTA’s decentralized finance (DeFi) total value locked (TVL) surpassed $15 million, supported by projects like Swirl (which offers liquid staking) and Virtue Money’s vUSD stablecoin. Partnerships with companies like Lukka provide compliance tools to attract institutional investors.
Why it matters: This growth is promising but depends on turning staked IOTA (currently $334 million) into active DeFi use, rather than just passive earning.
Conclusion
IOTA’s roadmap combines technical improvements (like better scalability and compliance) with practical applications (such as trade and identity solutions). While there are risks in execution, key indicators to watch include the number of validators and adoption of the TWIN network. The big question is whether IOTA’s focus on regulatory compliance will help it outpace other enterprise blockchain platforms.
What updates are there in the IOTA code base?
IOTA’s software is making big strides with new tools that build real-world trust, improve the network, and offer better identity solutions.
- Trust Framework Launch (October 16, 2025) – An open-source toolkit that helps create tamper-proof records and tokenized assets.
- Mainnet Node v1.4.1 (August 14, 2025) – Boosts decentralization and transaction speed with a new protocol upgrade called IIP-3.
- Identity v1.6-beta (May 26, 2025) – A ready-to-use decentralized identity system with flexible design for easy integration.
Deep Dive
1. Trust Framework Launch (October 16, 2025)
What it is: The IOTA Trust Framework gives developers tools to securely link real-world activities—like contracts or supply chain info—directly to the blockchain. It’s designed to be flexible and doesn’t require transaction fees (“gasless”).
This update adds libraries for notarization (official record-keeping), identity checks, and tokenization, making it easier to build applications such as verifying academic degrees or managing trade documents.
Why it matters: This is a big positive for IOTA because it lowers the technical barriers for businesses to create trustworthy, automated solutions. This is especially important for Internet of Things (IoT) devices and global trade systems. (Source)
2. Mainnet Node v1.4.1 (August 14, 2025)
What it is: The network upgraded to Protocol Version 10, increasing the number of validator nodes from 50 to 80. It also introduced IIP-3, a new algorithm that speeds up transaction processing.
This update improves the network’s decentralization—meaning no single party controls it—while keeping it stable. New validators like Klever have joined to support the network.
Why it matters: In the short term, this won’t affect IOTA’s price much. But in the long run, faster and more decentralized processing makes IOTA more attractive for businesses that handle large amounts of data. (Source)
3. Identity v1.6-beta (May 26, 2025)
What it is: This update offers unified programming interfaces (APIs) across different platforms, making it easier to manage decentralized identities (DIDs) and permissions. It integrates with Keytool, simplifying identity management.
Developers can now build identity solutions that comply with privacy laws like GDPR without needing custom code. It also supports complex setups like assets controlled by multiple parties.
Why it matters: This is a strong positive for IOTA because it connects traditional web identity systems (Web2) with blockchain-based ones (Web3). This is crucial for industries with strict regulations, such as healthcare and decentralized finance (DeFi). (Source)
Conclusion
IOTA is focusing on real-world applications by enhancing trust, scalability, and identity management. Although the price has dropped about 39% over the past 90 days, these technical improvements set the stage for more enterprise partnerships. The modular design of the Trust Framework could be a key driver for growth in the last quarter of 2025.
Why did the price of IOTA fall?
IOTA (IOTA) dropped 5.88% in the last 24 hours, underperforming the overall crypto market, which fell 4.38%. The main reasons include negative technical signals, Binance lowering margin requirements, and slow growth in IOTA’s ecosystem compared to competitors.
- Technical Downtrend – Price is below important moving averages, with a weak RSI at 35.28
- Binance Margin Changes – Collateral ratio cut from 50% to 35% on September 5, reducing trading leverage
- Ecosystem Growth Concerns – DeFi and developer activity remain flat compared to newer blockchains like SUI
Deep Dive
1. Technical Weakness (Bearish Signals)
Overview: IOTA is currently trading at $0.134, which is below key moving averages: the 7-day average is $0.148, and the 30-day average is $0.172. The Relative Strength Index (RSI) is at 35.28, indicating the coin is oversold but without clear signs of a rebound. The MACD histogram shows ongoing downward momentum.
What this means: When the price is below these moving averages, traders often see it as a signal to sell. The RSI not showing a bullish reversal means buyers are hesitant. The next resistance level is at $0.172, which would require a 28% price increase to break through.
What to watch: If IOTA’s price closes above $0.14, it could stabilize. But if it falls below $0.13, it might trigger more selling pressure.
2. Binance Margin Ratio Cuts (Impact on Trading)
Overview: On September 5, Binance lowered the collateral ratio for margin trading on IOTA from 50% to 35%. This means traders need to put up more of their own money and can borrow less.
What this means: Lower collateral ratios usually reduce the amount of leverage traders can use, which can decrease speculative trading. This fits with a 45.66% spike in IOTA’s 24-hour trading volume, often a sign of selling during a downtrend.
3. Ecosystem Stagnation (Mixed Outlook)
Overview: Despite partnerships like Lukka for compliance tools, IOTA’s decentralized finance (DeFi) total value locked (TVL) is around $36 million (as of August 17), much smaller than competitors like Solana, which has $3.4 billion. A Yahoo Finance analysis points out that developer interest in IOTA is declining compared to newer Layer 1 blockchains.
What this means: Although the recent Rebased upgrade improved IOTA’s technology (offering 50,000 transactions per second and staking options), adoption is slow. The 12.5% monthly drop in activity shows skepticism about its near-term growth potential.
Conclusion
IOTA’s recent price drop is due to technical weaknesses, less attractive margin trading conditions, and slow ecosystem growth amid a cautious crypto market (Fear Index at 28/100). While staking on Binance offers yields up to 29.9% APR, helping to soften losses, pushing the price back above $0.15 will require stronger momentum from on-chain activity.
Key watch: Will IOTA hold the $0.13 support level, or will outflows from altcoins accelerate? Keep an eye on the October Moveathon Europe hackathon for signs of renewed developer interest.
What could affect the price of IOTA?
IOTA is caught between growing real-world use and the current cautious mood in the crypto market.
- Staking Trends (Positive) – Nearly half (48.65%) of IOTA’s tokens are staked, which helps reduce selling pressure. Plus, liquid staking with stIOTA offers more flexibility for holders.
- Institutional Interest (Mixed) – More exchange-traded products (ETPs) and partnerships are emerging, but decentralized finance (DeFi) activity is still behind newer blockchain platforms.
- Regulatory Environment (Positive) – Compliance tools like Lukka AML/KYC and engagement with EU policies could make IOTA more attractive to businesses.
Deep Dive
1. Staking & Validator Growth (Positive Impact)
Overview:
Almost half of IOTA’s total tokens (worth about $360 million) are staked, meaning they are locked up to help secure the network. With liquid staking through stIOTA—audited by Hacken—users can trade their tokens while earning an annual yield of 11.89%. The number of validators has grown to 67, but there is some concern about decentralization since the top 10 staking pools control over 40% of the staked tokens.
What this means:
High staking levels usually help stabilize prices by reducing the number of tokens available to sell. However, if a few large pools control too much of the network, it could create risks in how decisions are made and managed.
2. Real-World Adoption vs. Crypto Competition (Mixed Impact)
Overview:
IOTA is making strides with projects like the TWIN trade network in partnership with the World Economic Forum and Abu Dhabi’s Sharia-compliant licensing (IOTA Foundation). However, its DeFi total value locked (TVL) is only $36 million, which is much smaller compared to Solana’s $4 billion. Newer blockchains like Sui are attracting more developer activity, according to DefiLlama.
What this means:
While IOTA’s enterprise partnerships could create steady demand, the lack of strong retail DeFi activity means it might miss out during market rallies that favor more speculative tokens.
3. Market Liquidity & Regulation (Positive with Risks)
Overview:
Binance offers locked products with nearly 30% APR through October to December 2025, which could attract investors looking for short-term returns. At the same time, IOTA supports clearer crypto regulations proposed by the Financial Stability Board (FSB), aligning with European Union compliance efforts.
What this means:
Clearer regulations could make IOTA a safer choice for institutional investors interested in real-world assets (RWAs). However, ongoing market caution—reflected in the Crypto Fear & Greed Index at 28/100—might delay price gains until overall sentiment improves.
Conclusion
IOTA’s price will depend on how well it grows its enterprise use cases while managing the current cautious crypto market. Watch the $0.172 Fibonacci retracement level—if IOTA holds above this, it could gain momentum toward $0.20. The key question is whether staking rewards can balance out the selling pressure from 25% of tokens becoming unlocked.
What are people saying about IOTA?
The IOTA community is balancing cautious optimism with some technical doubts as new upgrades face challenges from the broader market. Here’s what’s happening right now:
- Traders are watching for a breakout above $0.17 following the launch of the Notarization toolkit and Rebased staking yields of around 13% APY.
- Upbit’s suspension of IOTA trading has raised concerns about liquidity amid delays in network upgrades.
- Total Value Locked (TVL) reached $36 million after the Rebased upgrade, but the number of active users dropped by 50% in July.
In-Depth Look
1. @iota: Notarization Toolkit Launch is a Positive Sign
"IOTA Notarization reduces costs to just $0.00067 per record compared to the industry average of $0.50" – CoinJournal (July 3, 2025).
– @iota (283K followers · 12.1M impressions · July 3, 2025, 16:50 UTC)
View original post
What this means: This is good news for IOTA’s use in businesses, especially in supply chain and logistics, because it offers a much cheaper way to securely record data.
2. @klever_org: Validator Partnership Brings Mixed Results
"Joining IOTA as a validator to help connect different Web3 networks" while 45% of IOTA’s circulating supply is staked.
– @klever_org (89K followers · 2.7M impressions · August 19, 2025, 12:01 UTC)
View original post
What this means: This move helps make the network more decentralized, which is positive. However, the number of active users has dropped from 1,374 in June to 687 in July, showing less on-chain activity.
3. CoinMarketCap Community: Technical Analysis Shows Mixed Signals
"A double-bottom price pattern at $0.14 could lead to an 80% rally, but a bearish MACD crossover remains" – Crypto.news (August 17, 2025).
– CMC Community Post (367017728 · 14.3K views · August 17, 2025, 04:29 UTC)
View original post
What this means: The short-term outlook is cautious as the price has dropped 26% over the past week and is struggling to stay above the 50-day moving average of $0.148, despite growth in TVL.
Conclusion
The overall view on IOTA is mixed. While infrastructure upgrades like Notarization and the TWIN trade network are promising, they are offset by declining on-chain activity and outflows from altcoins in the market. Keep an eye on the $0.1314 double-bottom support level: if it breaks, it could trigger a wave of sell-offs, but if it holds, it might encourage more staking and accumulation.
What is the latest news about IOTA?
IOTA is facing mixed signals: new staking rewards are encouraging more engagement, but concerns about growth remain. Here’s the latest update:
- Binance Launches High-Yield IOTA Staking (October 1, 2025) – Offers up to 29.9% APR, which could help stabilize demand.
- Analysts Raise Concerns Over Slow Ecosystem Growth (October 1, 2025) – Declining decentralized finance (DeFi) activity and fewer developers are warning signs.
- Sweden Lists IOTA ETPs for Regulated Investment (September 24, 2025) – Opens the door for institutional investors despite ongoing market volatility.
In-Depth Look
1. Binance Launches High-Yield IOTA Staking (October 1, 2025)
What happened:
Binance introduced a new staking option called IOTA Locked Products, offering annual percentage rates (APRs) as high as 29.9%. Users can lock their IOTA tokens for periods between 30 and 120 days, earning rewards paid out daily. This move is part of Binance’s plan to encourage long-term holding and improve liquidity.
Why it matters:
This is good news for IOTA because it encourages people to hold onto their tokens during a tough market, where prices have dropped about 32% over the last three months. However, the overall effect depends on how many users participate. If many join, it could reduce selling pressure. If few do, it might show a lack of confidence. (Binance)
2. Analysts Raise Concerns Over Slow Ecosystem Growth (October 1, 2025)
What happened:
Even though IOTA’s price has increased 23% compared to last year, experts are worried about stagnant growth in the number of wallets and developer activity. Competing projects like SUI are gaining more attention, and DeFiLlama reports very little decentralized finance activity on IOTA’s platform.
Why it matters:
This is a warning sign for IOTA’s future. Without new partnerships or more users, the token could lose value, especially if Bitcoin continues to dominate the market (currently 59% dominance). Technical analysis shows resistance at $0.17 and support around $0.14. (Yahoo Finance)
3. Sweden Lists IOTA ETPs for Regulated Investment (September 24, 2025)
What happened:
Valour added IOTA to its list of 13 new Exchange Traded Products (ETPs) on Sweden’s Spotlight Stock Market. These ETPs allow investors to gain regulated exposure to IOTA with a management fee of 1.9%.
Why it matters:
This is somewhat positive. Institutional investors now have a regulated way to invest in IOTA, which could bring more capital. However, IOTA’s price dropped 10% after the listing, showing weak momentum. The overall success depends on the broader altcoin market, which is currently quiet (Altcoin Season Index at 26, down 63% monthly). (Coinspeaker)
Conclusion
IOTA is at a crossroads. On one side, new staking rewards and regulated investment products offer opportunities for growth. On the other, slow ecosystem development and challenging market conditions create risks. The key question is whether IOTA can use its real-world partnerships to boost network activity and regain momentum.