Why did the price of IOTA go up?
IOTA (IOTA) increased by 1.53% in the last 24 hours, doing better than its 30-day drop of 15.15%, and following its 7-day upward trend of 6.20%. The main reasons for this growth are new compliance partnerships, attractive staking rewards, and important technical improvements.
- Institutional Compliance Tools – Integration with Lukka helps attract institutional investors.
- Staking Demand – Binance offers high-yield IOTA Locked Products with up to 29.9% APR, drawing in more investors.
- Technical Upgrades – The Mainnet v1.4.1 update improves network decentralization and speed.
Deep Dive
1. Institutional Compliance Push (Positive for Growth)
Overview: On July 22, 2025, IOTA teamed up with Lukka to add real-time anti-money laundering (AML) and know-your-customer (KYC) tools directly into its system. This makes IOTA more appealing for businesses, especially in regulated areas like trade finance and digital asset management.
Why it matters: These compliance tools make it easier for exchanges and institutions to use IOTA, which could increase trading activity and demand. After the partnership announcement, IOTA’s price rose about 5% in late July. Interest picked up again in October as chains compliant with ISO 20022 standards became more popular.
What to watch: Look for adoption numbers in Lukka’s Q4 2025 transparency report to see how widely these tools are being used.
2. Staking Incentives Fuel Demand (Positive for Growth)
Overview: Binance launched IOTA Locked Products on October 1, offering annual percentage rates (APR) between 16.9% and 29.9% for staking periods of 30 to 120 days. According to DeFiLlama, over $14 million was staked within 48 hours.
Why it matters: High staking rewards encourage investors to hold their IOTA instead of selling, which can reduce selling pressure and support the price. The 24-hour trading volume compared to market cap is 2.24%, indicating moderate liquidity, so concentrated buying can have a bigger impact. However, if staking rewards aren’t balanced by increased use of IOTA, they could reduce its long-term value.
What to watch: Monitor how many people continue staking after the initial launch period.
3. Technical Upgrades & Validation (Mixed Effects)
Overview: On August 14, the Mainnet v1.4.1 upgrade increased the number of validator nodes from 50 to 80 and introduced a more efficient sequencer (IIP-3), improving transaction throughput by about 20%.
Why it matters: More validators mean better decentralization and network security. However, the price hasn’t shown much movement since the upgrade. Technical indicators like the 24-hour Relative Strength Index (RSI) at 40.88 suggest neutral momentum, while the MACD histogram at -0.00041186 points to some ongoing downward pressure.
What to watch: Keep an eye on daily transaction numbers, aiming for consistent growth above 50,000 transactions per day (currently around 28,000).
Conclusion
IOTA’s recent gains are driven by strategic efforts to appeal to institutions (through Lukka and ISO 20022 compliance) and short-term capital inflows from staking rewards. Still, technical signals and overall market caution (Fear & Greed Index at 32) suggest a careful outlook. Key watch: Will IOTA’s TWIN trade initiative, which aims to cut logistics costs by 80%, lead to real-world adoption in Q4 beyond just speculative trading?
What could affect the price of IOTA?
IOTA’s price is caught between growing real-world use and ongoing technical challenges.
- Tokenomics & Staking – Inflation from new tokens vs. tokens burned through fees
- Enterprise Adoption – Integration with ISO 20022 and trade partnerships
- Network Reliability – Transaction delays risk user trust
Deep Dive
1. Tokenomics & Staking (Mixed Impact)
Overview:
IOTA’s total supply increases steadily by about 767,000 tokens each day, which equals roughly 6% inflation per year. This inflation is partly balanced by tokens burned as transaction fees. However, 2.1 billion IOTA tokens (46% of the total supply) are locked until 2027, with some unlocking every two weeks, which could increase selling pressure. Staking offers a 10–15% annual return (Binance), encouraging holders to keep their tokens staked, but only 14% of the supply was staked as of October 2025.
What this means:
In the short term, prices might drop as locked tokens unlock and enter the market. But if more people stake their tokens, it could help reduce the impact of inflation. The small fee burn (0.005 IOTA per transaction) needs widespread use to significantly reduce inflation.
2. Enterprise Adoption (Bullish Impact)
Overview:
IOTA plans to integrate with the ISO 20022 payment standard by November 2025, putting it in line with other institutional payment-focused coins like XRP and XLM. Partnerships such as the TWIN Foundation (working with the World Economic Forum and TradeMark Africa) aim to address a $500 billion gap in trade finance. Real-world pilot projects include tracking poultry between the UK and EU and monitoring produce between Kenya and the Netherlands (Crypto.News).
What this means:
Being compatible with SWIFT banking standards could increase demand from banks. Supply chain projects could boost transaction volume. Success in these areas would support IOTA’s goal of being a platform for “real-world assets,” which has historically helped its price.
3. Network Reliability (Bearish Risk)
Overview:
Users have reported transactions stuck for weeks (GitHub), reminiscent of past issues like the 2020 Trinity wallet hack. Although the Rebased upgrade in May 2025 improved decentralization, only 50 validators currently control the network consensus, raising concerns about centralization.
What this means:
Ongoing transaction delays could discourage developers and businesses from using IOTA. If trust continues to decline, the price could fall 30–40% back to around $0.10 (its 2024 low), especially compared to competitors like Hedera, which offers 50,000 transactions per second and enterprise-level service agreements.
Conclusion
IOTA’s success in 2025 depends on managing token unlocks, increasing staking participation, and proving its Tangle technology in major trade corridors. While ISO 20022 integration and TWIN partnerships offer growth potential, the network must fix latency problems to avoid becoming a “zombie chain.” Will IOTA increase its validator count to 150 by 2026 to decentralize control and rebuild confidence?
What are people saying about IOTA?
The IOTA community is discussing technical progress alongside price changes. Here’s what’s trending:
- Traders are watching for a breakout above $0.2150 after the price held steady near $0.2080 support.
- A partnership with Klever has increased the number of validators, showing the network is becoming more secure.
- Staking rewards are around 14%, but the number of active users is not growing as fast as the total value locked (TVL).
Deep Dive
1. Bullish trade setup above $0.2080
CryptoSignalsPro, a popular market analyst, says:
"IOTA holds strong at 0.2080 – TP targets 0.2150 with SL below 0.2040."
This means traders see $0.2080 as a key support level. If the price stays above this, it could rise to $0.2150. But if it falls below $0.2040, there might be a 3.5% drop.
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2. Klever joins IOTA as a validator
Klever, a well-known blockchain platform, has become a validator on the IOTA network. This helps make the network more decentralized and secure.
"Klever strengthens IOTA’s decentralization – bridging Web3 ecosystems."
While having more validators (now over 150) is good for security, it’s unclear if this will lead to more big investors joining.
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3. Staking yields hit 14%, but active users decline
According to a Nansen report shared by Crypto.News:
"IOTA’s TVL hits $36M with 13% APY, but active addresses fell 50% in July."
This means that while staking rewards are attractive compared to Ethereum’s 3-5%, fewer people are actively using the network. This suggests that some investors might be speculating rather than using IOTA for real applications.
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Conclusion
The outlook on IOTA is mixed. Developers are excited about upgrades like Hierarchies Alpha and more validators, which improve the network’s foundation. However, traders are cautious because momentum is weakening despite positive chart signals. Keep an eye on the $0.2040 support level—if it breaks, the bullish outlook could be in jeopardy, especially with overall market caution (CMC Fear & Greed Index: 32).
What is the latest news about IOTA?
IOTA is making progress with new partnerships and technical improvements, but some investors remain cautious. Here are the key updates:
- Trust Framework Launch (October 16, 2025) – Open-source tools designed to create secure and compliant digital records.
- Binance Locked Products (October 1, 2025) – Staking options offering up to 29.9% annual returns to encourage holding IOTA longer.
- Valour ETPs on Spotlight Market (September 24, 2025) – Regulated investment products available to Nordic investors, including IOTA and other tokens.
In-Depth Look
1. Trust Framework Launch (October 16, 2025)
What it is: IOTA introduced the Trust Framework, a set of open-source tools that help create tamper-proof records, decentralized digital identities, and compliant tokenized assets. This system can be used in areas like supply chain tracking, verifying academic credentials, and trade finance.
Why it matters: This is a positive step for IOTA because it makes it easier for businesses and governments to use blockchain technology. The framework follows privacy laws like GDPR and doesn’t charge fees, which could encourage real-world use in regulated industries.
(IOTA)
2. Binance Locked Products (October 1, 2025)
What it is: Binance launched staking products for IOTA, offering annual percentage rates (APRs) between 16.9% and 29.9% for lock-up periods of 30 to 120 days. More than $5 million worth of IOTA was staked within the first 48 hours.
Why it matters: This is somewhat positive. It increases demand for IOTA in the short term, but the rewards might lead some investors to sell once their staking period ends. This move fits with IOTA’s goal to integrate more closely with exchanges after its recent technical upgrade.
(Binance)
3. Valour ETPs on Spotlight Market (September 24, 2025)
What it is: Valour added IOTA exchange-traded products (ETPs) to Sweden’s Spotlight Stock Market, expanding their offerings to 13 products. These ETPs have a 1.9% management fee and trade in Swedish Krona (SEK).
Why it matters: This is neutral news. While it gives more institutional investors access to IOTA, being grouped with meme coins like PEPE could weaken IOTA’s reputation as a serious enterprise-focused project. Trading volumes have been modest since launch.
(Yahoo Finance)
Conclusion
IOTA is balancing new technology (Trust Framework), exchange-driven liquidity (Binance staking), and regulated investment options (Valour ETPs). However, slow growth in user wallets and competition from newer blockchain platforms like Sui present challenges. The key question is whether institutional interest in IOTA’s compliance with ISO 20022 standards will outweigh skepticism from everyday investors.
What is expected in the development of IOTA?
IOTA is making significant progress with these key updates:
- IOTA Trust Framework Launch (October 12, 2025) – Open-source tools that help developers create secure apps for identity verification, notarization, and token management.
- Mainnet Node Upgrade v1.4.1 (August 14, 2025) – Protocol Version 10 improves network decentralization and speeds up transaction processing.
- TWIN Foundation Expansion (Q4 2025) – Growing global trade infrastructure through partnerships with major institutions.
Deep Dive
1. IOTA Trust Framework Launch (October 12, 2025)
Overview: The Trust Framework offers ready-to-use, modular tools designed to help developers build secure applications. It includes decentralized identity (DID), verifiable credentials, and transactions without fees, focusing on industries like supply chains and finance.
What this means: This is a positive step for IOTA adoption, as businesses get easy-to-integrate solutions for real-world problems. However, if developer support and documentation aren’t strong, adoption might be slower than expected.
2. Mainnet Node Upgrade v1.4.1 (August 14, 2025)
Overview: This upgrade expands the validator group from 50 to 80 nodes (IOTA Foundation), which helps make the network more decentralized. A new sequencing method (IIP-3) also increases the network’s capacity to handle more transactions quickly.
What this means: This is generally good news, as it strengthens the network’s foundation. However, the impact on IOTA’s price will depend on whether more people start using the network regularly.
3. TWIN Foundation Expansion (Q4 2025)
Overview: The TWIN initiative, created alongside the World Economic Forum and Trademark Africa, aims to digitize international trade. Pilot programs in East Africa and the UK plan to reduce trade documentation costs by up to 80%.
What this means: This has strong long-term potential if adoption grows quickly, but it depends on regulatory approvals and how fast partners join. Any delays could slow down positive momentum.
Conclusion
IOTA’s roadmap combines important technical improvements (v1.4.1) with efforts to grow its ecosystem (Trust Framework, TWIN), setting the stage for broader institutional use. The key to success will be turning partnerships into active network users. The upcoming trade digitization pilots in Q4 could be the catalyst IOTA needs to prove its value in managing real-world assets.
What updates are there in the IOTA code base?
IOTA's software is actively being developed with a focus on making the system scalable, compliant with regulations, and equipped with tools for businesses.
- Trust Framework Launch (October 12, 2025) – Open-source building blocks for identity verification, secure document notarization, and transactions without fees.
- Starfish Consensus Protocol (September 10, 2025) – A new experimental method to improve how the blockchain processes data faster and more efficiently.
- Hierarchies Alpha (August 19, 2025) – Tools that let organizations set up and manage trust and approval roles directly on the blockchain.
Deep Dive
1. Trust Framework Launch (October 12, 2025)
What it is: This framework offers ready-made components that developers can use to build decentralized applications (dApps) that comply with legal requirements, without paying licensing fees. It includes features for managing identities, securely notarizing documents so they can’t be altered, and making transactions without any fees. This is especially useful for businesses tracking supply chains or operating in regulated financial services.
Why it matters: This is a positive development for IOTA because it makes it easier for companies to adopt blockchain technology while staying within legal boundaries. Developers get easy-to-use tools that help create practical, real-world applications.
(Source)
2. Starfish Consensus Protocol (September 10, 2025)
What it is: Starfish is an experimental protocol that separates how transaction headers (summary information) are shared from how the full data is distributed. This reduces delays and helps the network reach agreement faster, even when facing network issues or attacks. Validators first process the headers quickly and then download the full data in parallel.
Why it matters: This update is neutral for now since it’s still being tested. However, if successful, it could make IOTA’s network more reliable and faster, which is important for Internet of Things (IoT) devices that need real-time data processing.
(Source)
3. Hierarchies Alpha (August 19, 2025)
What it is: This feature allows organizations to create and manage trust relationships on the blockchain using programmable rules. For example, companies can define who has the authority to approve contracts and can revoke permissions when needed. It combines smart contracts with tools that keep a clear record of all actions for auditing purposes.
Why it matters: This is a strong positive for IOTA because it supports complex organizational structures directly on the blockchain. This capability is crucial for industries like healthcare and international trade, where clear approval processes and accountability are essential.
(Source)
Conclusion
IOTA’s recent updates focus on making the platform ready for business use by providing compliance tools, improving performance, and building trust mechanisms. While technical upgrades like Starfish aim to strengthen the network’s future, practical releases like the Trust Framework address immediate needs for real-world adoption. These improvements could help IOTA form more partnerships in regulated industries such as trade finance.