The IOTA price held steady on Tuesday even as other cryptocurrencies dived after the token holders voted in favor of Rebased. The token, formerly known as MIOTA, rose to $0.31, 26% above its lowest level last week.
Rebased and the new era
IOTA’s price jumped after the developers noted that 98% of all token holders voted in favor of the Rebased proposal.
Rebased will be a major upgrade in the IOTA network because of the major features it will introduce. For example, it will bring on Move-based smart contracts, allowing developers to build quality decentralized applications (dApps) in areas like DeFi and Non-Fungible Tokens.
Rebased will also improve the network with faster transaction speeds and lower costs. The average cost of transactions in the network will be about $0.005, much lower than other popular blockchains like Solana and Ethereum.
Further, it will have a small 6% annual inflation, which will continue falling over time, making the token potentially more valuable. Most importantly, IOTA will introduce staking to the network, allowing holders to earn rewards over time.
Rebased will be the biggest upgrade in IOTA’s network as it will now make it possible for developers to build on top of its technology. While IOTA has been around for many years, these features are unavailable.
As a result, IOTA has been left behind by other popular blockchains like Solana and Base. For example, Solana has become the second-biggest chain in the blockchain industry by attracting meme coin and DePIN creators.
The challenge for IOTA is that Rebased comes at a time when the industry has become saturated with layer-1 networks that offer similar features. Some of the top competitors are blockchains like Solana, Base, and Arbitrum.
IOTA price analysis
The daily chart shows that the IOTA price has found strong support at the 50-day moving average, which is a positive sign. It has also formed a popular bullish sign, a cup and handle chart pattern.
IOTA price has also formed a falling wedge pattern, as shown in red. The two lines of this wedge are about to converge, which is when an asset forms a bullish breakout.
Therefore, the IOTA token will likely have a bullish breakout, with the next point to watch being at $0.4207, the highest part of the cup. Such a move would imply a 35% upside from the current level. More gains past that resistance will lead to more gains to $0.6353, the year-to-date high.
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