IOTA (MIOTA) is a unique platform and cryptocurrency network launched in 2016. It is open-source and uses distributed ledger technology (DLT) via its directed acyclic graph (DAG) technology called the "Tangle."
In the years after Ethereum and other smart contract platforms launched, IOTA's developers saw an opportunity to build a project that would revolutionise the Internet of Things (IoT) with fast and feeless transactions.
Today, the IOTA Foundation is on track to achieve that goal with an enterprise-ready network. In the market, MIOTA is gaining traction after surviving the brutal 2018 bear market.
Since the IOTA token sale, there have been major developments on the network, with market performance often fluctuating to reflect the prevailing sentiment. While fundamental growth has played a key role in the price action of MIOTA, key global news and events have also had a fair share of impact on overall price movements. In the sections below, we look at some key news and the timeline of events for IOTA.
In 2020, as the effect of the coronavirus pandemic hit the global community, economies began to shrink amid a worsening health crisis. As several countries reported a spike in the disease, governments were forced to outline international travel bans and lockdowns by March.
Officially, the world was headed for another recession that looked set to be worse than the economic crisis of 2008/2009. As world leaders scrambled to contain the spread of the virus, markets began to tumble and businesses closed down as consumer spending tanked to lows not seen in a long time.
Cryptocurrencies were not spared, and on 13 March 2020, the IOTA price fell from $0.20 to $0.08. It remains the lowest price level for MIOTA to date. But as you will see in subsequent sections, the coin's price has since soared to highs of $2.63 recorded on 17 April 2021.
The reversal is in line with most other cryptocurrencies and means that the IOTA price is likely to go even higher as the cryptocurrency network matures. But it also remains vulnerable to such global events and news.
13 June 2017
Bitfinex is the first major crypto exchange to list MIOTA, the native token on the IOTA network. (IOTA price traded around $0.53).
8 September 2017
Researchers from Boston University and MIT released a report on a potential security flaw in IOTA's hash function. Controversy erupts regarding the response from the IOTA Foundation, which appeared to downplay the threat and also blames the researchers. (Price ranged around $0.54-$0.57).
The IOTA Foundation is registered as a not-for-profit. The charter allows IOTA to work with researchers and institutions. The move is aimed at ensuring the platform's development is standardised. (IOTA price more than triples; from $0.41 to over $1.44 before rising to its all-time high in December).
Hackers steal over $10 million worth of MIOTA after a breach in the IOTA seed-creator. The attack remains the worst in IOTA's history. A 36-year old UK citizen was later arrested as the mastermind behind the attack. (Price has dropped and reached lows of $2.20).
12 February 2020
IOTA experiences a downtime after the IOTA Foundation shut down a coordinator compromised in a November 2019 attack. The affected coordinator restarted in March 2020. (Price drops nearly 30% over the month reaching $0.21 on 29 February).
10 December 2020
IOTA co-founder David Sønstebø exits. (Market reacts lower, with price dropping from $0.31 to $0.28).
28 April 2021
IOTA's Chrysalis update activates as the network implements IOTA 1.5 in the race to make the DLT platform enterprise-ready. (Price has been in a downtrend and it continues through May, breaking below $1.00 decisively in June).
Is IOTA a good investment? To find out, let's see how the cryptocurrency compares to fiat currencies, commodities and other cryptocurrencies.
Compare IOTA with Silver
Silver is one of the rare and highly valuable metals openly traded across spot and futures exchanges. The precious, mineable element is often considered a store of value. The asset has been around for much longer and therefore a big part of investment portfolios.
IOTA, on the other hand, is a cryptocurrency that is relatively new in the market. However, like Silver, MIOTA is tradable 24/7 across several platforms. Scarcity and volatility affect both in the market, but the upside potential for IOTA is more as compared to Silver given its price history.
In comparing the price of silver to that of IOTA, we see that XAG price of $23.90 is -10% year-to-date while MIOTA is trading at $0.88 for a 195% increase YTD. For 2021, projections had put the Silver price at $24.91, suggesting a -6% change for the year. For IOTA, the projected price was that it will reach $1.26 to give it a +324% change in 2021.
Compare IOTA with Cardano
IOTA and Cardano are both altcoins that were created in response to limitations and problems facing Bitcoin. Both are also unique in their approach to problems facing pioneer platforms. Cardano is set to establish itself as a major crypto network in the smart contracts and dApps space, while IOTA is only starting to realise its IoT goal.
Both coins boast broad utility, better scalability, and efficiency. However, IOTA is not as popular as Cardano. In the market, ADA has performed better than MIOTA, with the former now a top 10 coin while the latter has dropped to the top 50.
In terms of the market, the IOTA price of $0.85 today is 195% higher since the start of 2021. The coin’s value is projected to increase to $1.26 by the end of 2022 to represent a 324% price change over the past 12 months.
Cardano price has performed better. The ADA coin is trading at $1.46 as of 9 August to represent a 708% increase since the start of the year. For 2021, Cardano was predicted to grow to $1.75, representing an 869% gain in the past year.
Compare IOTA with the Euro
The Euro was introduced in 1999 as a monetary unit in the EU and currently ranks as the second most important currency in global trade. It is tangible as opposed to the intangible digital asset MIOTA.
While you can trade the currency just as you would the cryptocurrency, there are differences in how market factors affect price movements. The Euro is more stable in terms of price movements but still fluctuates as demand and supply shift. IOTA is more volatile as an asset, meaning greater risk. Yet that's where the potential for higher gains comes into play.
The price of IOTA remained relatively stable between 2018 and the first six months of 2020, with upward moves often succeeded by downturns of similar trajectories. 2021 how saw an injection of volatility and a run to multi-year highs that caught the eye of investors.
For future IOTA price predictions, it appears the general price direction will track that of major cryptocurrencies like Bitcoin and Ethereum. Other price drivers will be IOTA news on adoption and network growth. Let's look at IOTA's price outlook for 2022 and the next few years.
MIOTA has seen massive gains since its debut in 2017. The coin's value jumping from $0.4 to highs of $5.25 during the 2017 bull market shows how the future price movements are likely to pick up from current levels.
After a bearish market for much of 2018 and 2019, late 2020 saw prices move higher as adoption news in the crypto market triggered fresh buying. As of writing, IOTA's price is 983% up from its 13 March 2020 lows of $0.081637 that was occasioned by the global market crash as economies fell due to covid-19.
IOTA price is 189% in the green year to date, although a recent downswing means it fell below the one dollar mark. CoinGecko data gives MIOTA/USD an aggregate exchange price of $0.85, with the daily chart showing the recent downward trajectory after a death cross occurred.
MIOTA chart. Source: TradingView
IOTA price recently broke up after the formation of a falling wedge pattern, the bounceback taking MIOTA/USD from lows of $0.58 to $0.99. While price remains in an overall downturn, the bullish pennant pattern formation with prices above the 50 MA ($0.80) suggests a potential continuation towards the 200 MA ($1.23). The breakout could include a 54% surge that might see bulls target resistance around early June peak of $1.40.
The 50-200 MA gap is however widening as the short-term moving average curve looks to slope even further. This is indicative of the presence of bears, shown on the chart by the Doji candlestick. Pullbacks are therefore more likely and IOTA may dip to support at $0.60.
MIOTA price chart. Source: TradingView
The weekly chart is also showing mixed signals for IOTA's price, suggesting plenty of room for both bulls and bears to make a decisive move before the end of 2021.
The current price is above both the 50 and 200 MAs and has registered three consecutive higher weekly closes. The dipping curve of the 20 MA is a bearish factor that could see prices dip in the short term. Key prices to watch are thus at $0.84 and $0.74 on the downside, and $1.08 on the upside.
So where do various platforms tracking the price of IOTA predict it to be by the end of 2022 based on the current market as well as potential future drivers?
One analyst predicts IOTA will increase by 34% over the next four months to end the year around $1.17, while Coin Price Forecast analysis forecasts MIOTA's value against the US dollar will increase to $1.25 to register a year on year price change of +320%. From current levels, the site predicts MIOTA will gain by about 45%.
IOTA price forecast chart. Source: Walletinvestor
As you can see, predictions for IOTA in 2021 range from a modest high of $1.17 to a more bullish target of $2.42. We also highlighted the possible support levels around $0.74 if bulls fail to sustain the current uptrend.
Overall, in the next few months, factors such as crypto regulation, adoption, and the direction of the global fight against Covid-19 will likely influence where IOTA trades next. The overall performance of the IOTA network as it moves through its updates will be key.
As with the rest of the year, the outlook for IOTA over next year will most probably revolve around the same fundamental factors. Technical predictions suggest that IOTA's price will keep the upward trajectory, but that might change if there are adverse government regulations in the future.
A normal bear market cycle could also play its role, but if positive sentiment runs hard, we could see IOTA reach the more bullish forecast prices below.
This is what one analyst says about IOTA as of 6 August 2021:
"In the first half of 2022, the IOTA price will climb to $1.44; in the second half, the price would add $0.43 and close the year at $1.87, which is +117% to the current price."
The price of IOTA beyond 2022 is projected to largely increase, though the predictions remain speculative and changes to market sentiment or a network effect could flip price direction. The price volatility driven by news events makes it difficult to provide a precise forecast for any asset, let alone IOTA. The whole of crypto is wildly volatile and news or related events can trigger massive fluctuations in either direction.
It's also worth noting that the market moves in cycles and fundamental developments or slightly positive news might not impact prices during a bear market.
The likely price drivers for IOTA in 2023 and over the next several years will include major developments on the IOTA network. If we see some of the proof of concept projects come to fruition in the IoT world, it could be big for MIOTA. We should also be keen to see what happens with other 'directed acyclic graph' projects like DAG, whose development is also key to the wider appreciation of the sector.
Here are some of the projections for IOTA, most of which are bullish about the cryptocurrency to various degrees. One is at least clearly bearish, likely because of the above-mentioned factors or the expected regulatory crackdown that has seen increased pressure on crypto from China, the US and India.
One site, which relies on an AI-powered algorithm to forecast price movements, suggests that IOTA is bullish long term and that its value will rise significantly. IOTA will jump to highs of $4.20 in 2023 and add close to 50% the next year to reach $6.22 by the end of 2025.
Another prediction platform also gives IOTA a slightly bullish outlook for the next three to five years. According to the platform's algorithm, MIOTA will increase gradually through 2025, topping out around $1.95 in 2023, $2.21 in 2024, and $2.72 in 2025.
One analyst projects IOTA beyond 2022 suggest further growth above the previous year's highs of $1.74. The prediction sees a significant increase in the IOTA price, rising to $1.87 in early 2023 before soaring to $2.29 in the first six months. The upside will continue alongside normal market pullbacks and see 2023 end with IOTA price around $2.69. According to this prediction, IOTA's value by the end of 2023 will be up 212% from today's value of around $0.86.
Some analysts are bearish about IOTA price in 2023 and 2024, suggesting that the price of the crypto will shrink from $2.61 at the start of January 2023 and reach lows of $1.38 at the end of the year. The bear market would then continue and push MIOTA price to lows of $0.66 by the end of 2024.
For more detailed predictions, read our IOTA price prediction guide here.
IOTA's focus on IoT and its move towards full decentralisation combined with the advantages of being enterprise-ready, highly scalable, and fee-less transactions provide an enabling environment for IOTA to grow and achieve its goal.
Another aspect of IOTA that makes it an attractive investment is the continued trust companies and projects have in the network's future potential. The IOTA Foundation has struck deals across several sectors.
In 2021, the IOTA Foundation has signed numerous partnerships that continue to grow the project's enterprise-ready status ahead of the full implementation of IOTA 2.0. Some of these collaborations include Trademark East Africa, ClimateCHECK, ORCHESTRA Consortium, Fetch and Horizen.
Crypto is an emerging asset class and thus still faces a lot of bumps as it seeks to cultivate space in a world slow to appreciate this revolutionary technology. But after 2017 and 2021, it appears crypto is just starting and IOTA could be one of those projects that could skyrocket.
A lot could change, but it certainly feels like IOTA's price today is a bargain buy. Make your own informed decision and if you wish to buy IOTA, find a platform that allows you to do so easily and securely.