From smartwatches and home appliances to self-driving cars, the ecosystem IoT (Internet of Things) has grown to cover all kinds of devices. That said, we expect the urban IoT infrastructure to expand even further. The latest findings indicate that implementing regular blockchain is complicated for the IoT, and it requires a dedicated "blockchain". IOTA, a ledger-based technology designed specifically for the IoT, is being proposed as a solution.
An innovative technology called Tangle has put IOTA on the map as one of the most promising projects for the upcoming years. This made us particularly interested in IOTA price predictions. How will this next-generation tech influence different industries, and how will it be reflected in the corresponding coin’s value?
As mentioned, IOTA (MIOTA) is a different kind of cryptocurrency. What is quite unusual is that it doesn’t utilize blockchain technology. Instead, IOTA is a block-less platform known as Tangle, which we’ll talk about shortly. It relies on an open-source ledger protocol and various IoT applications.
The platform was launched in 2015. Behind it, there was a team of David Sønstebø, Sergey Ivancheglo, the project lead, and Dominik Schiener and Dr. Serguei Popov, responsible for the mathematics and programming.
From the start and up to this day, the project focuses on the following objectives:
- Research and implementation of their protocol
- Collaboration with partners for sustainable impact
- Open-source software with no unnecessary friction in transactions
- Educating the community and promoting use cases
What Makes the Project Different
The first thing that sets IOTA apart is the unique blockless technology - Tangle. Whereas blockchain data structure is an ordered list of blocks of transactions, Tangle’s branched system can evolve in different directions. Tangle is a Directed Acyclic Graph (DAG) that doesn’t require mining or energy-consuming equipment. Hence, there is no reward system for miners, eliminating most of the costs. This makes Tangle more feasible for situations like micro or nano-transactions between devices and sensors.
Also, as the blockchain grows, it requires more assets. With Tangle, it’s the opposite. The wider the network grows, the more quickly and safely new transactions are validated.
The project itself exists through contributions from individuals and organizations as well as research and development grants from public bodies.
Potential Issues
IOTA has promised to solve the scalability issues inherent that blockchain is facing. However, the underlying data structures for DAG - hashgraphs - may not be the perfect solution. Vitalik Buterin, the co-founder of Ethereum, shared that currently, hashgraphs are still similar to blockchain. They maintained the dependency on the capacity and speed of devices within the network.
In 2020, IOTA also introduced a Coordinator. This goes against the claim of a decentralized system. The existence of a Coordinator creates a single point of failure, potentially slowing down the entire network. IOTA aims to replace the Coordinator with a plan called Coordicide to eliminate the problem.
What Will Have an Effect on IOTA Price?
Before we go into IOTA predictions, we need to define what factors can affect its price and how. Some are associated with the crypto market in general, but others are specifically about IOTA. Bear in mind that all the points mentioned below can drive the price both ways.
- Increased Adoption of IoT. There are more than 30 billion IoT devices connected around the world. This figure is projected to grow to over 75 billion by 2025. IOTA, being one of the first to marry IoT and cryptographic payment processing, has a lot of potential here. If the growing number of IoT devices is going to be complemented with the increased adoption of IOTA, it’s bound to drive the price up. It’s clear that more and more machines are going to have the processing power. With the IOTA’s focus on the machine-to-machine economy, it can become a potential enabler for an M2M economy.
- Technical Maturity. IOTA’s development Tangle can signify a game-changer in the cryptocurrency world. But it’s not working at its full capacity and has yet to replace blockchain, even in terms of microtransactions. If the team manages to unleash the full potential of Tangle, the coin will take off. In the meantime, IOTA introduced the three phases of IOTA 2.0 leading up to Coordicide. A new version of our Pollen Testnet v0.3.5 has just been released to the public. Additionally, the development team is working on several improvements, including Tangle refactoring, congestion control, and timestamp validation.
- Availability on Exchanges. IOTA is yet to be represented on all major exchanges. For example, it’s missing from top exchanges like Poloniex and Kraken. The expectation is that as IOTA gets listed more, it will start expanding its reach of investors. Plus, the interest from short-term traders is also going to grow.
- Strategic Alignment. Any cryptocurrency benefits from strategic partnerships and real-world applications that come from it. IOTA is taking the necessary steps. For example, Jaguar Land Rover has collaborated with the IOTA Foundation to allow drivers to earn crypto and make payments on the move. Another interesting case is the City of Taipei that is about to offer Tangle-based ID cards to its citizens. The list also includes Dell Technologies, the Linux Foundation, EDAG Group, and over 100 more.
- General Market Sentiment. Any IOTA price prediction relies on investor sentiment and the value of other currencies. A favorable environment has a positive effect on all cryptocurrencies. A very good example is the crypto boom of 2017. Most cryptocurrencies reached their all-time highs back then, IOTA included. If the situation repeats itself, it’s likely that IOTA will go up. If the opposite happens, we’ll be seeing downfalls of more than one coin.
Analysis of IOTA’s Performance in the Past
At the end of 2015, IOTA’s ICO was a huge success, with over $400,000 raised. All of one billion IOTA tokens were sold for less than $0.001 - $0.000434512, to be particular. By December 2017, IOTA went up more than 1 million percent from its Initial Coin Offering price. On December 19, the coin traded at $5.69, which is still the all-time high for the coin. The rally followed the IOTA Foundation’s announcement of their partnership with Microsoft, Samsung, and Fujitsu.
Unlike many projects in this space, IOTA doesn’t put up any paid promo, so it solely relies on its technological advantages and a steady stream of these large news stories. Unfortunately, IOTA is far from catching up to its previous highs.
Another spike was in May 2018. This was when the IOTA Foundation signed a cooperation agreement with DNB ASA, Norway's largest financial services group. The Head of DLT at DNB said at the time that they thought engaging technology like IOTA could give them valuable experience and know-how on future revenue streams. The price was $2.41 around that time. IOTA’s price has been hovering around the $0.3-$0.5 mark since mid-2018. At the time of writing, the price is $0.4577.
What Was IOTA’s Performance in 2020-early 2021?
2020 was seemingly off to a good start. The coin was showing quite substantial growth, launching from $0.16 on January 1 and climbing to $0.35 on February 3. However, there was a big bump ahead for the project. In February 2020, IOTA shut down its entire network after hackers had exploited a vulnerability in the official IOTA wallet. The hack resulted in millions stolen and long-lasting reputational damage. The incident had a significant effect on the coin’s value - it lost all the previous growth and even more, dropping to $0.12.
As expected, the incident temporarily affected many of the development projects. Still, the team managed to make some progress and make Chrysalis a reality. In addition to that, the Coordinator was restarted on 10 March. From that point on, the coin experienced stable positive movement up until the end of August. On August 21, the coin reached the highest point in 2020 - $0.42.
After that, there were price fluctuations with dips to $0.23 on September 23 and heights like $0.40 on November 24. But what is remarkable is how the coin behaved at the start of 2021. It can only be described as a sudden take-off. During this particular period, the project didn’t make any huge announcements. On the contrary, the team was taking its time to reflect on the past. IOTA continues to move in an upward trend with noticeable fluctuations. Having looked at IOTA’s performance over the years, you know the context. Now, let’s proceed to IOTA price predictions.
Short-Term IOTA (MIOTA) Price Prediction for 2021
The first IOTA price prediction on our agenda is Wallet Investor. According to this source, the short-term forecast is bullish. The image below depicts a chart that was built based on the IOTA historical data. One of the most detailed forecasts we could get our hands on is from Trading Beasts. Here is how IOTA will behave in 2021, as predicted by this particular platform.
Any positive IOTA MIOTA price prediction relies on the project successfully handling their current problems. We pinpointed the following issues that need to be solved in 2021 for the coin to increase:
- Security of the Tangle is dependent on the transactions going through the network. The Imperial College of London has already partnered with the IOTA foundation to solve this and other urgent issues.
- The speed of the network also relies on the number of transactions that are processed by IOTA. Once the network receives 10,000 per second already, they will all be instant. But in the meantime, it takes minutes.
- The project’s PR hasn’t been great, especially the team’s response to criticism. Hopefully, now that David Sønstebø isn’t a threat to IOTA’s online image, the team will handle it differently.
- The IOTA developers had written their own hash function, Curl, and it produced collisions (when different inputs hash to the same output). The current version of IOTA does not have the same vulnerabilities it had a few years ago, but other vulnerabilities can’t be ruled out.
For the 2022 IOTA (MIOTA) price prediction, we’re using the source called Long Forecast. Below is a month-by-month overview of its possible movements.
Forecasts for IOTA in 2023-2025
Next up, Digital Coin Price rolled out their opinion on the coin’s price movement. As you go further, the figures aren’t as descriptive compared to shorter-term predictions.
Here are a few IoT-related educated guesses for the years 2023-2025:
- Technologies such as smart devices, 5G, and machine learning algorithms will greatly influence the industry.
- 5G alone is going to contribute to the IoT network to a significant degree. Faster networks allow devices to gather, analyze and manage data more efficiently. In turn, that will fuel innovation and boost consumer demand for new products.
- With the increased use of IoT devices, cybercriminals will escalate in using them to facilitate Distributed Denial of Service (DDoS) attacks. Although it’s not IOTA’s responsibility to handle them, the network will inevitably feel the effects of large-scale attacks (if they happen).
Overall, anything that happens in the IoT industry has an indirect effect on IOTA. But this doesn’t negate the fact that IOTA needs to make improvements within its system.
Long-Term Prediction: IOTA in 2030
Finally, there is a long-term IOTA price prediction by Coin Price Forecast. It’s the least descriptive but what it does show is the overly positive sentiment toward IOTA in the future. IOTA remains one of the only platforms that can offer:
- The possibility of instant transactions;
- Zero fees;
- Near infinite scalability and decentralization through side-chain/off-chain/horizontal scaling.
These advantages can be the driving force behind IOTA’s growth in the next decade. The nominal costs of transactions make IOTA a perfect candidate for micropayments, which are only destined to grow in scale. Not to mention, it uses one-millionth of the energy usage of Bitcoin.
IOTA Price Analysis
The first stage of carrying out technical analysis is to switch to higher timeframes on the chart to determine the current trend and see the full picture. Then, you need to place support and resistance levels. For IOTA, we have the following key levels:
- Resistance levels: $0.4530, $0.4000, $0.3500
- Support levels: $0.3000, $0.2700, $0.2380
The next step is to use indicators to define high probability setups in the market and figure out a set of actions. A few oscillators that are used quite often are:
- Awesome Oscillator - 0.08180869 - Neutral
- Relative Strength Index (14) - 61.62071554 - Neutral
- Average Directional Index (14) - 32.12785861 - Neutral
- MACD Level (12, 26) - 0.03222683 - Sell
And below are moving averages that are quite informative for IOTA:
- Exponential Moving Average (10) - 0.44666726 - Buy
- Simple Moving Average (10) - 0.45269485 - Buy
- Exponential Moving Average (200) - 0.30935484 - Buy
- Simple Moving Average (200) - 0.30975541 - Buy
- Ichimoku Cloud Base Line (9, 26, 52, 26) - 0.39075976 - Neutral
- Volume Weighted Moving Average (20) - 0.42349001 - Buy
Use chart analysis in combination with indicators for additional confirmations and signals.
Another piece of advice is to differentiate between timeframes depending on your goals. If you want to gauge movement in the near future, go for short periods. But you can also look at daily, weekly, and monthly charts for a longer-term perspective.
What the Community and Experts Think
A trustworthy source and an online publication we’ve yet to mention is FX Leaders. They have conducted a thorough analysis of the coin both from technical and fundamental perspectives. In the end, they rolled their forecasts:
- This year: $0.50 affected by the crypto market sentiment, IOTA sentiment, and global politics.
- Next year: $0.55-$0.60 driven by post-COVID-19 improvements and the recovery of the global economy.
- Three years: $4.50-$5.00 affected by technical aspects of the protocol and surrounding solutions, IoT adoption, and global politics.
One of the most popular content creators that are putting out crypto analyses, including IOTA price predictions, is SkinnyMoonHunter. In his video, he shared a price goal for IOTA at $1.1231.In his opinion, IOTA can potentially break this level and gain a steady bullish direction. This would be a 134% increase, and the coin is already on its way.
The analyst and his team simply say that “IOTA is really out.” He also doesn’t rule out the possibility of the coin reaching $3, but the 591% increase is unlikely to happen soon. It’s best to take things one step at a time because there is no guarantee against a sudden reverse.
Martin Palamarz, the co-founder of TheyDo, a customer-centric collaboration platform, shared his take on IOTA. In his recent tweet, he expressed a positive outlook on the IOTA’s upcoming developments. This slightly echoes what we’ve said in this article - as soon as IOTA figures out the solution to DLT shortcomings, it’s going to be on everyone’s radar.
There was another interesting tweet by a Ranorex engineer. Although he might be biased (as a founder of the IOTA community), we can still take away useful information. He expects a rosy future for many altcoins, and IOTA is one of them. This outlook aligns well with everything we found in other sources so far and proves once again that this cryptocurrency has potential.
Invest or Trade: What’s Better for IOTA?
Based on the IOTA price predictions we currently have, there are many reasons to enter the market. But the big question is whether you should play the long-term game or the short one. As IoT devices get commonly adopted, the true potential of IOTA tokens starts to take shape. Some think that IOTA is a long-term hold because it will take a few years for the development team to fully address all the issues. But when it finally does, the project is going to provide some truly transformative features.
Make sure to find a reliable crypto storage method. Serious IOTA investors should consider splurging for a hardware wallet. If you’re planning to store crypto for years, it’s advisable to do everything in the safest way possible. So, minimize the possibility of online threats to make your investment work in your favor.
Trading IOTA
Alternatively, you can take the best of both worlds - keep a good amount of tokens stored and trade a smaller amount for short-term capital gains. There is always a risk of the coin not appreciating over time, so short-term trading can help you offset that.
There are a few benefits of trading, specifically IOTA CFDs. For example, the ability to succeed in both rising and falling markets and trading on leverage. So, even if IOTA sees a price decrease, there is a chance to take advantage of the unfortunate change. And when you add a small capital and leverage, you could gain a large exposure to the cryptocurrency market, but please note that trading CFDs with leverage can be risky and can lead to lose all the invested capital.
IOTA proves to be resilient in terms of tradability. Even though the coin doesn’t show drastic price changes, there is still quite a lot of volatility. If you’re considering whether you should enter this market or not, try a Libertex demo account. It’s a risk-free way to implement different strategies and get familiar with a new trading asset. When you’re ready to enter the real market with your strategy, you can graduate to a live trading account and get to work!
Conclusion
IOTA needs to achieve quite a lot to gain widespread credibility. But if the technology succeeds, it might lead to a revolutionary change - a peer-to-peer internet for IoT instead of service providers. But as you’ve seen in each IOTA price prediction featured in this article, the overall consensus is positive. Despite the obvious drawbacks, IOTA’s Tangle could be the next big advance in cryptography. In the end, try to remain at least somewhat skeptical without jumping right it. After all, the uncertainty of the crypto market can’t be overlooked.
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FAQ
Is IOTA Worth Investing in 2021?
The past yeast has shown that IOTA is capable of growth, indicating that it can be a worthwhile investment. It started 2020 with a market capitalization of under $450 million. By the end of the year, it reached more than $900 million. While it’s still a rocky road for the project, a gain of over 100% is a good sign.
What Makes IOTA Different?
IOTA is behind the next generation of protocols for the connected world. There are no transaction fees, the transaction speed is through the roof (250 TPS while Bitcoin is at 7), and low computing power requirements. Thus, it has the ability to empower the Internet of Things under more advanced conditions.
What Are IOTA’s Future Plans?
In December 2020, co-founder David Sønstebø was voted out of the project. This decision is likely to reflect positively on the interest of Iota and its ecosystem since Sønstebø wasn’t particularly loved by the community and media. Currently, the network is expecting the fully decentralized Iota mainnet, Iota 2.0, to be completed in Q1 2021. Other than that, IOTA plans to continue partnerships with large corporations and focus on the Internet of Things.
Will IOTA’s Price Go Up?
With IOTA being one of the most ground-breaking projects in the crypto sphere, the prospects are great. At the very least, the idea is impressive. The question is its realization. If it manages to overcome its problems, the value is going to rise.
Will IOTA’s Value Be in 2021?
Some available forecasts put IOTA into the $0.20-$0.77 range for 2021. Considering it’s currently at $0.49 at the start of the year, the anticipation is both positive and negative. It’s worth mentioning that the price has been going up in January.
What Will IOTA Be Worth in 2030?
By 2030, the bulls are expected to push the price higher to new levels. The most optimistic IOTA price prediction puts it at $4.21.
