IOTA (IOTA), a leading distributed ledger network, has experienced a significant drop in price, falling to $0.30, a 53% decrease from its December high of $0.6280. The decline, which also reflects a broader market downturn, comes as IOTA token holders engage in a crucial governance vote that could shape the future of the network.
Over the past two days, IOTA’s price has been under pressure, paralleling declines seen in other major cryptocurrencies like Bitcoin and Solana. This downturn coincides with the ongoing voting process regarding an ambitious growth initiative. The proposal, which includes public awareness campaigns and on-chain network metrics, aims to unlock 44.8 million tokens held by Tangle DAO to promote the IOTA network. Voting is set to conclude on January 20, with early results showing that 97% of voters are in favor of the proposal, though the figures could shift as the vote progresses.
[IOTA Governance] 🗹 Voting is now open for $IOTA token holders on the new proposal IGP – 0007 "#IOTA Growth Initiative" to raise public awareness and on-chain network metrics.🗳️The 7-day commencing phase starts now, Jan 13th at 3PM CET. Full proposal ⤵️https://t.co/CKVhb2hW8J pic.twitter.com/uSSOcwvCD6
— IOTA (@iota) January 13, 2025
This governance vote follows the Rebased proposal, which promises to introduce several key upgrades to the IOTA ecosystem. These include the addition of parallelized MoveVM and EVM, full decentralization, 50,000 transactions per second, and staking yields ranging from 10% to 15%. If successful, these upgrades are expected to position IOTA as a strong contender to blockchain networks like Solana and Ethereum by enhancing its functionality for decentralized application development.
However, despite these ambitious plans, IOTA has faced challenges in implementing an independent chain. Its canary network, Shimmer, has only attracted $728,000 in total value locked, indicating that adoption has been slower than anticipated.
From a technical standpoint, IOTA’s price chart shows a triple-bottom pattern, typically a bullish signal, with a neckline at $0.400. While the token remains above its 50-day and 100-day Exponential Moving Averages, a drop below these levels could see IOTA testing further support at $0.2500.
Also Read: IOTA’s Rebased Protocol Secures Overwhelming Approval: What’s Next for the Ecosystem?
In conclusion, while IOTA is currently in a bearish trend, the ongoing governance vote and network upgrades could trigger a potential rebound if the price maintains support levels.
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.
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