- IOTA was in the spotlight after the latest Stardust hard fork.
- The new hard fork brought in new tokenomics, including regular token releases.
IOTA price remained in a consolidation phase this week as investors watched the latest network upgrade and hard fork. The coin has held quite steady at $0.1522, where it has been at in the past few days. This price is a few points above last month’s low of $0.1343.
IOTA hard fork
IOTA has made several important milestones in the past few weeks. Last week, the network debuted ShimmerEVM smart contracts and tokens for the ecosystem. Shimmer is a side project that IOTA built to help developers build quality dApps in its ecosystem. It recently added Ethereum Virtual Machine (EVM), making it easy for dApps to interact with Ethereum.
In a statement last week, the developers said that users can now send Shimmer’s token (SMR) to the Shimmer EVM through Firefly. IOTA is working to boost its ecosystem by bringing in more developers into its platform.
The other big news in IOTA’s ecosystem was the Stardust hard fork that happened on Wednesday. This hard fork was part of the transition to IOTA 2.0, which the developers aim will lead to more activity in the platform.
According to the Stardust release, IOTA 2.0 will have smart contracts, making it easy for creators to build dApps. It will also enhance the network’s tokenomics. As part of this process, IOTA will also launch an ecosystem fund, through the release of new IOTA tokens, which will happen bi-weekly over four years, leading to a 12% inflation every year. The statement added:
“With the new token distribution, existing holders will retain more than 60% of the total supply, while the new IOTA ecosystem funds, contributors, and the IOTA token airdrop to those who staked for Assembly will together be less than 40%.”
This token unlock will likely have a negative implication on the IOTA price in the long term since it will lead to more coins in circulation.
IOTA price forecast
The daily chart shows that the IOTA crypto price has been in a tight range in the past few months. It has remained at the current level at $0.1522. The coin has remained between the descending channel shown in black. It is also slightly below the 50-day moving average while the Relative Strength Index (RSI) was at the middle level.
Therefore, the outlook for IOTA price is neutral for now. The key support and resistance levels to watch will bee the lower and upper sides of the channel. If this happens, the key levels to watch will be at $0.1236 and the resistance at $0.1780.
