IOTA token price has collapsed to its lowest level since March 2020, underperforming most cryptocurrencies like Tron, Bitcoin, and Solana. It retreated to a low of $0.1150, 95% below its highest level on record and 75% lower than the year-to-date high.
IOTA token has crashed because of two main reasons. First, the much-hyped Shimmer network has failed to deliver by not attracting developers and traders on its ecosystem.
Data compiled by DeFi Llama shows that Shimmer has attracted only seven projects in its ecosystem and a total value locked (TVL) of just $965,000.
The biggest networks in the ecosystem are Magic Sea AMM, Deepr Finance, and Iotabee, which have only $681k, $291k, and $42k in assets. Also, its token, SMR, has a market cap of just $3 million.
Shimmer was launched as part of IOTA’s network to attract developers into its ecosystem. This, however, has not happened even as some newer tokens have continued to do well. For example, layer 1 and layer 2 networks like Sui and Base have continued to do well, with their total value locked being $1 billion and $2.45 billion, respectively.
Second, IOTA has slumped to 2020 lows because of a general lack of demand from investors in the spot and futures market.
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Data by CoinGecko shows that the average daily traded volume for IOTA is less than $20 million, which is a tiny amount for one of the oldest cryptocurrencies and whose market cap stands at $401 million.
In contrast, newly launched meme coins like Popcat, Brett, and SPX6900 are averaging substantially over $50 million in daily volume. IOTA’s futures open interest has also dropped to just $12 million, meaning that demand has dropped.
IOTA token prediction
IOTA chart by TradingView
The weekly chart shows that the IOTA token has been in a downward trend in the past few months. It has dropped below the important support at $0.1370, its lowest point in October and June last year.
It has dropped below all moving averages, while oscillators like the Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have pointed downwards.
Therefore, the path of the least resistance for the token is bearish, with the next point to watch being at $0.055, its lowest level on March 09, 2020.
Read more: IOTA Price Prediction: Outlook as Shimmer TVL Slips
