The IOTA token has gained momentum in recent days, reflecting a broader improvement in crypto market sentiment. At the time of writing, IOTA is trading at $0.1942, recovering from its year-to-date low of $0.1600. Investors are closely watching the upcoming Rebased upgrade, which is expected to enhance the network’s functionality and decentralization.
IOTA Rebased: A Game-Changer for the Network?
Unveiled in late 2024, the Rebased upgrade aims to make IOTA a more developer-friendly and decentralized blockchain. The key transformation involves shifting from the current centralized structure to a Delegated Proof of Stake (DPoS) model, integrating at least 150 validators.
This shift will introduce staking rewards, offering IOTA holders an annual percentage yield (APY) of 6% to 7%. Currently, IOTA holders do not receive any staking incentives, making this upgrade particularly attractive. Furthermore, the introduction of smart contracts will position IOTA as a viable competitor to Ethereum and Solana, potentially increasing adoption.
IOTA’s Path to Adoption and Market Impact
While the implementation of smart contracts is a significant step, success is not guaranteed. Many blockchain projects with similar aspirations have struggled to gain traction. For example, IOTA’s Shimmer network, despite its technological advancements, has less than $1 million in total value locked (TVL). To ensure widespread adoption, IOTA may need to follow strategies similar to Fantom’s Sonic rebrand, which helped the network gain significant traction.
The exact launch date for the Rebased upgrade remains uncertain. Initially expected in Q1 2025, the upgrade may now be postponed to Q2 or Q3 as developers complete the testing phase.
IOTA Price Outlook and Technical Analysis
IOTA’s recent price action suggests a potential bullish breakout. The token previously peaked at $0.6385 in December before dropping to its low of $0.1590. However, technical indicators signal a recovery.
Also Read: IOTA Rebased Testnet Welcomes New Validators, Strengthening Network Security Ahead of Mainnet Launch
A falling wedge pattern—a bullish reversal sign—has formed on the daily chart. Additionally, oscillators like the Awesome Oscillator and Percentage Price Oscillator indicate a possible upward move. Analysts predict that if the bullish momentum continues, IOTA could target the $0.3705 resistance level, representing an 82% increase from its current price.
As investors anticipate the Rebased upgrade, IOTA’s price trajectory will likely hinge on successful implementation and market adoption.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
