MIOTA, the token of the decentralised ledger for the Internet of Things, IOTA, has had a crisp couple of days rising 13% after a dramatic fall from an end of year high.
Over the Christmas period it shot up 48% only to plunge 31% into the New Year. Today (12 January) it is showing some signs of recovery with a rise of 7% perhaps being dragged up by a general bullish sentiment in the crypto space.
On 31 December in a blog the organisation said its top priority for 2022 is to “increase the utility of the IOTA token, network and ecosystem”. It added its “early focus will be on bringing developments to the mainnet as fast as possible and ramping up education, training, development and empowerment.”
Here we take a closer look at the coin’s technical setup and potential catalysts.
What is IOTA?
The IOTA token is the cryptocurrency that powers the project’s decentralised ledger. This network is primarily designed to support the Internet of Things (IoT) by providing a feeless ecosystem through which micro-data can be exchanged and recorded easily and fast.
Launched in 2016, the IOTA mainnet was started with $500,000 in funding obtained from seed investors who donated 5% of the IOTA Foundation’s tokens.
The IOTA Foundation is a non-profit organisation. It aims to provide an ecosystem that supports further advancements in the IoT field, given that transaction costs, scalability, and other similar issues have been an obstacle to the progress of this technology over the past few years.
A total of 2.779 billion tokens is the maximum supply for IOTA. They have been fully distributed. IOTA does not require the intervention of miners to validate transactions. Transactions are self-validated through IOTA’s underlying technology known as Tangle.
In theory, IOTA solves most of the issues of the “traditional” blockchain when it comes to processing large transaction volumes required to power the entire IoT ecosystem.
However, there are still security issues associated with Tangle. Some of these concerns are reportedly being addressed by the upcoming upgrade of the Chrysalis project.
Based on IOTA’s current price (as of 12 January) and its total maximum supply, the entire network is valued at $3.29bn and 48th in the ranking of cryptos. That is just a third of the project’s maximum historical market cap of nearly $15bn, which it reached in late 2017.
The IOTA project was co-founded by current chairman David Sønstebø, Dominik Schiener, Serguei Popov, and Serge Ivancheglo. Schiener and Popov have since left the board.
IOTA news: Chrysalis network upgrade
The 5 February announcement marked a possible turning point for the price of the IOTA token. The network’s upgrade began addressing the issues of scalability and security.
The developing team has been updating the community via its website on any progress made on the Chrysalis project, reporting monthly status updates, and details on migrations and developer documentation.
On 21 April, senior management announced that its ecosystem is ready for real-world uses as a result of the Chrysalis upgrade. This enterprise-ready ecosystem was launched on 28 April. Along with other improvements, the management team claims that power consumption has been reduced by 60%.
“We now have an enterprise-ready platform that will please both industry and consumer users with its enhanced functionally, industry-standard upgrades, and energy efficiencies. Our engineers have worked diligently to build the foundation for Coordicide and beyond”, said the Co-Founder and Chairman of the IOTA Foundation, Dominik Schiener.
On 2 December IOTA announced it was planning to launch in 2022 a permissionless multi-chain network to build, connect and deploy smart contracts, and call it Assembly. It will have its own token, the $ASMB, of which around 70% will be distributed to the community. The announcement on Twitter was so popular claimed the company that the Assembly account got “restricted”.
On 10 December Assembly tweeted that it had received $100m in funding from early backers including Huobi Ventures, LD Capital, HashKey Capital, Signum Capital, and HyperChain Capital. This comes on top of earlier commitments of $18m funding from “several private investors”.
There is a full round up of the organisation’s activities in 2021 on its website.
IOTA price prediction
The likelihood that IOTA could become the go-to network to power IoT devices and platforms is particularly high at this point. The completion of the landmark Chrysalis upgrade could be the reason why the token has been behaving so bullishly of late.
With a total market capitalisation of $3.6bn, which ranks it as the 46th biggest crypto, the project does not appear to be overvalued. It may be a promising project to watch in the crypto space due to its real-life applications and upside potential.
A plausible MIOTA coin price prediction could see the price surge to $4.2 a coin in the following months as long as that $2.7 resistance is broken at some point based on Fibonacci projections.
MACD readings are almost the same as those seen in 2018, which highlights the significant positive momentum that the token is seeing.
IOTA future price: analyst views
Referred to as one of the most promising crypto projects for IoT, IOTA enjoys bullish market sentiment supported by numerous analytical resources.
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Wallet Investor views IOTA as an “outstanding” long-term investment. It estimates MIOTA may hit $1.83 within 12 months and climb up to $4.81 in five years.
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Digital Coin believes MIOTA could average $1.64 in 2022, move up to $1.87 in 2023, $2.5 in 2025 and eventually hit $5 in 2029.
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Read more: Newest cryptocurrencies to watch: Internet Computer and Enjin
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