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IOTA has had a tough few years. Back in 2017, on the heels of a roaring stock market and the ICO bubble, the prospect of open applications for the Internet of Things piqued many people’s interest. In reality, the altcoin was once placed as high as fourth on CoinMarketCap’s lists.
However, at the time of publication, IOTA had fallen out of the top ten, and it was now the 24th-largest cryptocurrency with a market value of $6.02 billion. In reality, according to CoinGecko, the altcoin was still more than 55% away from its all-time high of $5.25 on December 19, 2017.
Is it all doom and gloom? No, not yet.
Consider this: on the eve of the 1st of January this year, the cryptocurrency was priced at slightly more than $0.28. On April 17th, just before market-wide corrections began, IOTA was traded at a price of $2.18. Simply put, the cryptocurrency has increased by over 775 percent in less than four months. That is a remarkable statistic, particularly for an altcoin with a market cap in the billions.
The explanations for IOTA’s price increase are very evident, with both correlation statistics and ecosystem-centric changes coming to the fore in recent months. Let us concentrate on the above for the purposes of this paper.
IOTA will launch the token transfer to its new network, Chrysalis, on April 21, with the network set to go live next week on the 28th. As a result, the new mainnet will be renamed the IOTA legacy mainnet. The IOTA Foundation claims that
“Chrysalis marks a true rebirth for the IOTA protocol, as it is the launch of an entirely new network. This relaunch will bring IOTA up to the level of an enterprise-ready product that is fully equipped for use in outside organizations and businesses that wish to leverage the power of the Tangle.”
The project has also claimed that Chrysalis “improves the efficiency, security, scalability, and stability of the IOTA protocol,” while making the latter “enterprise-ready.”
The aforementioned development has been preceded by other announcements over the past few months. A few weeks ago, for instance, IOTA co-founder Dominik Schiener issued the tentative roll-out date for IOTA Coordicide during an AMA session. Before that, the Foundation announced the release of a newer version of the Pollen testnet with Coordicide modules. What’s more, IOTA has also partnered with Cartesi to strengthen the use cases of DeFi.
With the release of Chrysalis, according to Schiener, IOTA has also sought to correct a few concerns associated with previous versions of the network. The removal of the Coordinator node that helps in the validations of transactions on the network is one such step.
Thanks to updates like these, there is a lot of optimism around IOTA at this moment, with the same underlined by the sporadic hikes in social sentiment and social volume since the start of the year.
What does this say for the price of the altcoin? In line with the bullish crypto-market and its ecosystem-centric growth, the alt recently reached a three-year high on the charts. Although it was still a long way from its ATH at the time of publication, it was moving in the right direction.
As a result, IOTA can emerge as an altcoin worth considering, especially if you are a short-term trader. Indeed, Messari claims that the alt’s 30-day and 90-day RoIs were as strong as 49.42 percent and 427.41 percent, respectively.
On the opposite, even though you’re in it for the long haul, the absence of dynamic transaction activity on markets over the last few months suggests that most people are HODLing IOTA rather than exchanging it. In either case, these observations indicate that traders are considering the altcoin’s bullish prospects, especially in light of the aforementioned developments.