Why did the price of IOTA go up?

IOTA (IOTA) increased by 2.35% in the last 24 hours, outperforming the mostly flat cryptocurrency market, which rose by 0.83%. This growth comes amid important developments in the IOTA ecosystem.

1. Interoperability Milestone: On December 3, IOTA integrated with LayerZero, connecting it to over 150 blockchain networks and improving its ability to work across different platforms.
2. Institutional Access: On December 10, BitGo added IOTA to its U.S. custody services, allowing regulated institutions to securely trade and hold IOTA.
3. Technical Rebound: Technical indicators like the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) suggest short-term positive momentum for IOTA.

Deep Dive

1. Cross-Chain Breakthrough (Positive Outlook)

Overview: On December 3, IOTA partnered with LayerZero and Stargate Finance, enabling easy transfers of assets across more than 150 blockchains, including popular ones like Ethereum and Solana. This makes IOTA a key player in connecting different blockchain networks for decentralized finance (DeFi) and trading.

What this means: Historically, IOTA has operated somewhat independently, but this upgrade allows it to work smoothly with many other blockchains. This could attract developers looking for a fast, low-cost platform to build cross-chain projects. Since LayerZero handles over $120 billion in cross-chain transactions annually, this partnership could increase demand for IOTA’s token as a way to settle transactions.

What to watch: Keep an eye on early usage numbers by tracking IOTA’s cross-chain transaction volume on LayerZero Scan.

2. Institutional Greenlight (Positive Outlook)

Overview: BitGo, a trusted custody service, added IOTA to its regulated platform on December 10. This allows U.S.-based institutions to safely hold and trade IOTA. This follows IOTA’s listing on Uphold on December 5, which expanded access for everyday investors.

What this means: Before BitGo’s support, most IOTA trading (72%) happened on exchanges outside the U.S., like Binance. BitGo’s involvement reduces regulatory concerns and could encourage participation from institutional investors and market makers. This is important because IOTA’s daily trading volume is relatively low at around $7 million.

3. Technical Rebound (Mixed Outlook)

Overview: IOTA’s RSI, a measure of buying and selling pressure, bounced back from oversold levels (30.42 over 7 days). The price stayed above the 7-day simple moving average (SMA) of $0.0853 but remains below the 30-day SMA of $0.0974, indicating that bears (sellers) still have some control.

What this means: The recent price support aligns with a key Fibonacci retracement level at $0.0816, but for a stronger recovery, IOTA needs to break above $0.0901. The MACD indicator shows only a slight positive momentum, meaning the upward trend is still fragile.

Conclusion

IOTA’s recent price increase reflects important progress in making the network more interoperable and compliant with regulations, rather than a broad market rally. The LayerZero integration and BitGo custody support highlight IOTA’s growing utility, but the token still faces resistance and a downward trend over the past 30 days (-27%).

Key point to watch: Whether daily trading volume ($7.05 million) can stay above the 20-day average ($9.8 million). A sustained increase would signal renewed investor interest and capital inflow.

What could affect the price of IOTA?

IOTA is navigating a mix of promising growth opportunities and market challenges.

1. ADAPT Trade Initiative – Pilot programs in Africa by 2025 could unlock $70 billion in trade value.
2. Institutional Access – BitGo’s custody service now supports IOTA, opening doors for U.S. investors.
3. Interoperability Upgrade – LayerZero integration connects IOTA to over 150 other blockchain networks.

In-Depth Look

1. ADAPT Trade Efficiency Program (Positive Outlook)

What’s happening:
IOTA’s ADAPT program, supported by the African Union and World Economic Forum, aims to reduce the cost of cross-border trade by 30%. It does this by digitizing trade documents using blockchain technology. Pilot projects starting in Kenya and Ghana by the end of 2025 hope to cut customs delays from weeks down to minutes, potentially generating $23.6 billion in yearly economic benefits.

Why it matters:
If successful, this program could increase demand for IOTA tokens as more trade activity uses the network. Early tests in Kenya showed document processing times dropped by 90%, indicating strong potential for scaling. Still, any delays or regulatory hurdles in participating countries could slow progress.

2. U.S. Institutional Onboarding (Mixed Impact)

What’s happening:
On December 10, 2025, BitGo, a regulated crypto custody provider, added IOTA to its platform. This allows U.S. institutions to securely hold IOTA tokens. This follows IOTA’s listing on Uphold, which made it easier for everyday investors to buy and sell.

Why it matters:
Institutional involvement can help stabilize IOTA’s price since BitGo manages $116 billion in crypto assets. However, IOTA’s developer activity remains low, with only 12 decentralized apps (dApps) launched after its recent upgrade. Without more growth in its ecosystem, simply offering custody services may not be enough to boost demand.

3. LayerZero Cross-Chain Integration (Positive Outlook)

What’s happening:
In December, IOTA integrated with LayerZero, a technology that connects it to over 150 other blockchain networks like Ethereum, Solana, and Cosmos through Stargate Finance. Since launch, more than $15 million worth of IOTA tokens have been moved across these chains.

Why it matters:
This cross-chain access improves liquidity and trading opportunities, which could reduce IOTA’s price swings (currently quite volatile at 62% over 90 days). However, other blockchains like Avalanche and Polygon already lead in cross-chain activity, so IOTA faces stiff competition.

Summary

IOTA’s future price depends largely on turning African trade partnerships into real on-chain usage while overcoming low developer engagement. About half of IOTA holders are staking their tokens, showing strong community support, but if staking rewards fall below 10%, some may sell. A key milestone to watch is whether ADAPT expands to over 10 countries by early 2026 and if monthly transactions rise above 1 million (currently at 655,000).

What are people saying about IOTA?

The IOTA (IOTA) community is divided between optimistic trading signals and cautious skepticism as the network undergoes upgrades. Here’s what’s happening right now:

1. Traders highlight potential gains over 100% amid big price swings.
2. Growing institutional interest through partnerships with BitGo and AfCFTA boosts confidence.
3. Technical improvements like the IOTA Hierarchies launch receive mixed feedback.

In-Depth Look

1. @Criptoprime0: "101% Profit on Futures" (Bullish)

"IOTA is looking very strong 💴👌 Binance Futures Take-Profit target 3 ✅ Profit: 101.0101% 📈"
– @Criptoprime0 (2,230 followers · 36,947 media posts · Dec 23, 2025, 06:37 UTC)
See original post
What this means: This bold trading prediction shows short-term optimism, but the post doesn’t provide detailed reasons behind the 101% profit target.

2. @iota: "IOTA Hierarchies Alpha Launch" (Neutral)

"Defining trust across people, organizations, and devices... modular, industry-agnostic."
– @iota (294K followers · Aug 19, 2025, 13:18 UTC)
See original post
What this means: This new feature aims to improve IOTA’s usefulness for businesses managing identities and credentials. However, its impact on price depends on how widely it’s adopted outside the crypto community.

3. CoinJournal: "Post-Rebased Price Drop Sparks Doubt" (Bearish)

After the May 2025 Rebased upgrade, IOTA’s price dropped 41%, and transaction volume fell 86% (source). Experts point to weak developer engagement despite attractive staking rewards of 13.47%.

Summary

Opinions on IOTA are mixed. Some traders are excited by price volatility, while others remain cautious due to slow adoption after recent upgrades. New features like Hierarchies and partnerships with BitGo and AfCFTA show promise for the future. Still, the price faces pressure from low developer activity and Bitcoin’s dominance at 59%. Keep an eye on the staking ratio—currently, 50% of IOTA’s supply is staked as of December 2025—which could indicate how confident holders are in the network.

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What is the latest news about IOTA?

IOTA is making moves in institutional adoption and facing regulatory changes. Here’s the latest update:

1. BitGo Institutional Support (December 10, 2025) – U.S. institutions now have a compliant way to hold and trade IOTA, improving market access.
2. ADAPT Trade Pilot Launch (December 16, 2025) – A new digital trade system for Africa is being tested in Kenya and Ghana.
3. Euro CBDC Threat (December 20, 2025) – The European Union’s upcoming digital euro could challenge IOTA’s role in payments.

In-Depth Look

1. BitGo Institutional Support (December 10, 2025)

What happened:
BitGo, a U.S.-regulated company that securely holds digital assets and offers $250 million in insurance, now supports IOTA on its platform. This means institutions in the U.S. can safely store and trade IOTA, overcoming previous legal and compliance hurdles.

Why it matters:
This is a positive step for IOTA’s market credibility and liquidity. BitGo serves over 4,900 institutions, so this could open the door for more regulated investment in IOTA. However, the real impact depends on whether these institutions actively use IOTA’s technology and services (CoinMarketCap).

2. ADAPT Trade Pilot Launch (December 16, 2025)

What happened:
IOTA’s ADAPT project, in partnership with the African Continental Free Trade Area (AfCFTA), started pilot programs in Kenya and Ghana. The goal is to reduce trade costs by 30% by using blockchain technology for digital identities, payments, and verifying documents.

Why it matters:
This is a cautiously optimistic development. If the pilot succeeds, it could prove IOTA’s usefulness in simplifying and digitizing trade across Africa. However, expanding this system to all 55 African countries by 2035 will require cooperation from regulators and local businesses (CoinMarketCap).

3. Euro CBDC Threat (December 20, 2025)

What happened:
The European Central Bank (ECB) has completed the technical setup for the digital euro, expected to launch in 2026. This government-backed digital currency will offer offline privacy features and strong regulatory compliance.

Why it matters:
This development poses a challenge for IOTA’s payment services in Europe. The digital euro’s official status and liquidity could overshadow smaller blockchain payment solutions like IOTA. To stay relevant, IOTA may need to focus on other areas such as ensuring data integrity (Cointribune).

Conclusion

IOTA is gaining traction with U.S. institutional support and African trade pilots, showing promise for enterprise use. However, regulatory challenges like the digital euro require IOTA to adapt its strategy. The big question for 2026 is whether IOTA’s real-world adoption can keep pace with the rise of centralized digital currencies.

What is expected in the development of IOTA?

IOTA’s development is moving forward with three key milestones planned for 2026:

1. Global TWIN Expansion – Growing its digital trade network across Africa and Europe.
2. IOTA 2.0 Mainnet Launch (Q1 2026) – Major protocol upgrade to boost security and speed.
3. Real-World Asset (RWA) Tokenization Pilots – Partnering with U.S. institutions to digitize assets like commodities and carbon credits.

Deep Dive

1. Global TWIN Expansion (2026)

Overview:
The TWIN Foundation, started in 2025, plans to expand its digital trade infrastructure into new regions in Africa and Europe during 2026. Current pilot projects in Kenya and Ghana focus on digitizing customs and supply chain information to make trade faster and more transparent.

What this means:
This is a positive sign for IOTA because real-world use in trade could increase demand for its network, which offers feeless transactions and high speed. However, there could be delays due to regulatory challenges, especially in East Africa.

2. IOTA 2.0 Mainnet (Q1 2026)

Overview:
IOTA 2.0 (details here) will bring a redesigned system for reaching consensus and processing transactions in parallel, aiming to handle over 100,000 transactions per second. This upgrade also plans to increase the number of validator nodes beyond the current 150 to improve decentralization.

What this means:
This upgrade is generally positive but could cause some short-term uncertainty as the network transitions. Its success depends on how well developers adopt new tools like the Move VM, which will enable more complex applications.

3. RWA Tokenization Pilots (2026)

Overview:
IOTA is preparing to launch pilot programs to tokenize real-world assets (RWA) in partnership with U.S. institutions, using BitGo’s secure custody services (source). The initial focus will be on tokenized commodity funds and carbon credits, making these assets easier to trade digitally.

What this means:
This is a promising development because it could bring significant institutional investment into IOTA. However, progress depends on clear regulatory guidance from the U.S. Securities and Exchange Commission (SEC) regarding crypto-backed financial products.

Conclusion

IOTA’s 2026 roadmap focuses on expanding trade infrastructure (TWIN), upgrading its technology (IOTA 2.0), and integrating with traditional financial markets (RWA tokenization). Partnerships with organizations like AfCFTA and BitGo add credibility, but regulatory and execution risks remain. The big question is whether IOTA’s feeless, high-speed network can gain widespread adoption in enterprise settings.

What updates are there in the IOTA code base?

IOTA's software is actively being improved with updates to its network protocol and tools.

1. Starfish Consensus (Sept 10, 2025) – An experimental upgrade aimed at making the network more resilient.
2. CLI & Indexer Updates (Sept 3, 2025) – Added options for customizing data processing and expanded command-line tools.
3. Wallet v1.3.0 Fixes (Sept 3, 2025) – Fixed issues with NFTs and improved software development kit (SDK) consistency.

In-Depth Look

1. Starfish Consensus (Sept 10, 2025)

What it is: This update, included in Mainnet version 1.6.1, changes how data is shared across the network. Instead of sending full blocks all at once, the system first sends block headers (summary information), allowing nodes to quickly identify important data before downloading everything else.

This approach can reduce delays, especially when the network is busy or under attack, potentially increasing data flow by 15-30% based on internal testing.

Why it matters: This upgrade could help IOTA better handle large amounts of data from Internet of Things (IoT) devices and machine-to-machine communication by making the network faster and more reliable. However, it’s still being tested and isn’t live on the main network yet.
(Source)

2. CLI & Indexer Updates (Sept 3, 2025)

What it is: The Indexer system, which helps organize and retrieve blockchain data, now lets operators customize how data is processed. Additionally, new command-line interface (CLI) tools for managing IOTA-Names—a system for decentralized digital identities—have been added.

Why it matters: These updates give technical users more control over data handling, which can improve efficiency for nodes managing large datasets. The improvements to IOTA-Names could make it easier to use decentralized IDs in applications like supply chain tracking.

Note: These changes are mostly behind-the-scenes and require technical knowledge to use effectively.
(Source)

3. Wallet v1.3.0 Fixes (Sept 3, 2025)

What it is: The wallet software received fixes to prevent crashes when handling NFTs (unique digital assets) with long names and improved how amounts are processed in the SDK.

Why it matters: These fixes improve the user experience by reducing errors and making the software more reliable, which is important for businesses using IOTA for asset management. The changes also make it easier for developers to work with the SDK.

(Source)

Summary

IOTA’s updates in late 2025 focus on making the network more robust and refining tools for developers and users. While no major new features were introduced, these improvements help prepare the platform for future growth, especially as it plans to expand its validator network in 2026. These changes could enhance IOTA’s ability to efficiently process large volumes of IoT data, supporting its goal of becoming a reliable backbone for connected devices.