The development of blockchain technology has propelled forward some other innovations in cryptography-enforced ways of data storage and transfer. One of them is DAG — Directed Acyclic Graph, which is the basis for the IOTA project. What is in this project’s future and is IOTA crypto a good investment? Look at the IOTA price forecast below and decide for yourself.
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IOTA Fundamental Analysis
IOTA is an open-source ledger designed for the Internet of Things. It is the first-ever ledger allowing microtransactions without any fees and with completely secure data transfer. It uses innovative quantum-proof technology known as Tangle or Directed Acyclic Graph instead of blockchain and thus it doesn’t have miners and all transactions are free. IOTA also provides faster transaction speed, endless scalability, and high-level security. Its goal is to become a backbone for the Internet of Things.
To perform a transaction only a small amount of computation power is needed making it a perfect currency to use by the machines and also distributed communication protocol for the IoT. IOTA aims to overcome the main issues of crypto such as the limitation of the big fees, slow approvals, and many restrictions.
As there are no miners to approve the transactions, every new transaction should approve two previous ones. Thus, to perform a transaction, every user needs to randomly (using weighted random walk) pick two transactions for approval.
IOTA foundation operates the coordinator node to achieve the consensus, which means that the coordinator is a single point of failure making the technology centralized.
The project was launched in 2015 in Berlin by four co-founders: Dominik Shiener, David Sonstebo, Sergey Ivancheglo, and Sergey Popov. Ivancheglo left the project in 2019, participating in its technology development independently.
IOTA token is a cryptocurrency that allows value transfers between machines and humans. The reason why only MIOTA is available on the exchanges is because tokens are traded in millions (MillionIOTA). Token has a total supply of 2,779,530,283 tokens and all of them are in circulation.
IOTA Live Price Chart
At the beginning of 2021 IOTA price was bouncing around the same level of $0.4 without big changes, but at the beginning of February, it suddenly surged to $1.25 and stayed on that level till the end of the month experiencing a slight correction.
In March IOTA Foundation announced the release of its Smart Contracts Protocol and its price started to grow continuously reaching $2.56 on April 17. The market stayed bullish for another month but collapsed in mid-May and the token experienced a pull-off, falling as low as $0.7.
The price recovered from the beginning till the end of April and after that went into the resistance period, where it stayed till the beginning of September. At that time IOTA slowly started to gain its value back. At the beginning of September, IOTA price surged again, though it didn’t reach the level of all-time-high seen in 2017, or even its April Price.
At the moment of publishing IOTA is trading for $1.27 and experiencing a current downtrend, but many analysts expect the dynamics to change soon which can make the token break the resistance and skyrocket to new heights.