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Today, IOTA price has surged by over 60% to tap $0.5756, marking the first time it has crossed the $0.50 threshold since May 2022.
The price surge has captured the attention of most traders and investors, with many projecting that more is yet to come after the $0.5 breakout.
Why is the IOTA price rising?
Today’s IOTA price surge can be attributed to several factors, with the most significant being the vote to upgrade the IOTA Mainnet to the Rebased protocol going live.
[Governance] 🚨#IOTA Rebased vote is now open! 🚨 Vote until Dec 16th to shape the future of the network. Should we adopt the new L1 protocol with Move-based smart contracts, full decentralization, staking & enhanced tokenomics? Let your voice be heard! 🗳️ blog.iota.org/iota-rebased-g…
The Rebased upgrade is packed with several important features aimed at improving IOTA’s scalability, decentralization, and overall functionality.
It includes the introduction of staking rewards, which will allow users to earn IOTA tokens, alongside a target inflation rate between 6% and 7%.
Another major change that would come with the Rebased upgrade is the full decentralization of the IOTA ledger, as well as the implementation of Move-based smart contracts, which would enable developers to build decentralized applications (dApps) on the IOTA network.
Furthermore, the upgrade will introduce a delegated proof-of-stake (DPoS) consensus mechanism and a mechanism for adaptive fee burning, which will lower transaction costs and make the network more efficient.
These improvements are designed to attract more developers to the IOTA ecosystem, as the network moves towards decentralization and aims to bypass Shimmer, IOTA’s canary network.
Bulls targeting $0.70 after IOTA broke past $0.5
IOTA’s price surge pushed its market capitalization to over $1.7 billion with its trading volume exceeding $700 million.
The surge coincides with the broader momentum seen across the cryptocurrency market.
According to the Altcoin Season Index, many altcoins have been outperforming Bitcoin (BTC), signalling that investor interest is shifting away from the leading cryptocurrency toward altcoins like IOTA.
Additionally, the Crypto Fear and Greed Index has soared to 76, indicating strong bullish sentiment within the market.
Many experts predict that IOTA could continue its upward trajectory, with some forecasting that the altcoin could reach $0.70 in the short term and even as high as $2.60 to $3.50 in the mid-term.
However, it’s important to note that technical indicators such as the Relative Strength Index (RSI) and the Stochastic Oscillator are showing overbought levels, suggesting that a pullback may be imminent before IOTA can continue its rally toward these higher targets.
Source: TradingViewAs the vote for the Rebased upgrade continues, IOTA’s future looks promising, with the potential for further growth if the proposal is accepted and the network transitions successfully.
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