IOTA Charts Post-Speculation Path as Schiener Calls 2025 a Year of Crypto Fatigue

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• IOTA’s founder says 2025 was defined by leverage, speculation, and crypto fatigue.
• The network is focusing on trade, supply chains, and institutional use cases.
• Kenya is set to run cross-border trade on IOTA’s mainnet in early 2026.

IOTA is entering 2026 with a clear message: the era of hype-driven crypto cycles is fading, and real-world utility must take center stage. In a year-end address, IOTA co-founder Dominik Schiener described 2025 as a period of “crypto exhaustion,” shaped by excessive leverage, short-term speculation, and eroding investor trust.

Schiener compared the past year to the 2018 downturn, arguing that memecoins, rapid token launches, and leverage-heavy trading left the industry questioning its purpose. Yet despite the fatigue, he sees signs of quiet progress—especially among institutions building on-chain infrastructure with practical use cases.

Why 2025 Tested Crypto’s Credibility

According to Schiener, speculative excess weighed heavily on market confidence throughout 2025. Easy leverage and fast-moving narratives created cycles of value extraction rather than long-term growth. This environment, he said, pushed many projects to chase trends instead of building durable products.

At the same time, institutional adoption continued to advance beneath the surface. Increased stablecoin usage in cross-border payments and growing tokenization efforts by traditional finance firms point to a maturing blockchain backbone, even as retail sentiment cooled.

IOTA’s Bet on Real-World Infrastructure

Rather than follow speculative waves, IOTA chose a slower, infrastructure-first path. A major milestone came with the rollout of IOTA Rebased, a Layer 1 upgrade that introduced Move-based smart contracts, native staking, and a decentralized validator network.

Schiener said these changes make IOTA ready for production-scale use by governments and enterprises. The network is now designed to handle high transaction volumes tied to real economic activity, not short-term trading incentives.

Trade, Supply Chains, and Global Adoption

IOTA has found its strongest traction in trade and supply-chain digitization—sectors that account for a significant share of global commerce. Through its Twin platform, the network is digitizing trade documents, tokenizing physical goods, enabling trade finance, and supporting stablecoin payments across borders.

Live deployments are already underway in Europe, alongside pilot programs in Africa. Partnerships with organizations such as TradeMark Africa, the Tony Blair Institute, and the World Economic Forum have helped validate IOTA’s approach.

A notable development is IOTA’s collaboration with the African Continental Free Trade Area. Starting in early 2026, Kenya is expected to process cross-border trade transactions on the IOTA mainnet, with more countries set to follow.

Also Read: 500+ Assets, $120B Flow: IOTA’s New Cross-Chain Era Begins

2026 Outlook: Institutions and Token Utility

Looking ahead, Schiener said 2026 will focus on institutional adoption and real yield. IOTA’s token will be directly tied to network security, transaction validation, and value creation from trade activity.

After a year defined by crypto fatigue, IOTA is positioning itself as digital public infrastructure for global trade—betting that utility, not speculation, will define the next cycle.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.