IOTA price remained in a tight range on Sunday as investors waited for the biggest upgrade in the network’s history. The token was trading at $0.20, a few points below the April high of $0.2415. This article explores what to expect ahead of Monday’s Rebased upgrade.
IOTA rebased upgrade is here
IOTA, a distributed ledger technology network, will be in the spotlight this week as the developers launch the Rebased upgrade after months of testing.
Rebased will introduce new changes that will change the network forever and make it a viable alternative to popular chains like Ethereum, Solana, and Sui.
The first major part of the upgrade will be the introduction of smart contracts in the network. This will enable developers to build applications in areas like gaming, decentralized finance (DeFi), and stablecoins.
This will be a big change compared to the current version of IOTA. The current version uses a technology known as tangle, which uses the directed acyclic graph (DAG) approach. Tangle is a network of transactions, where each transaction confirms the two previous ones.
Tangle helps the network to eliminate the need for miners as users validate their transactions themselves.
The most important upgrade in IOTAs history And all the exchanges are supporting it. Thank you Binance 🙏 I can’t wait for Monday 🔥
Therefore, the rebased network will transform it from the tangle into a smart contract chain, which will be powered by the over 150 validators. These validators, including Nansen and Blockspace, are used to confirm transactions in the network.
The other big change is that IOTA will now have staking, where investors are expected to earn an annual yield of between 10% and 15% over time. This is notable since these investors don’t earn anything today.
Further, IOTA’s network will have Move Virtual Machine that will power its smart contracts. Eventually, the developers hope that it will handle over 50,000 transactions per second, much higher than what most blockchains have today. It will also have low transaction fees, sponsored transaction fees, and storage deposits.
Rebased will also have an integration with Ethereum Virtual Machine (EVM), enabling apps created in the network to communicate with those built on the Ethereum network.
Risks and opportunities
The Rebased upgrade could make IOTA a better chain, boosting its price in the long term. A good example of this is Sonic, which transitioned from Fantom earlier this year. It has continued seeing a lot of traction that have pushed its total value locked to over $1 billion.
The risk, however, is that IOTA will become just another chain in the crypto industry. That’s because the industry is highly saturated, with hundreds of chains that all offer unique solutions.
IOTA has tried to become a better chain in the past. The most notable of this was its launch of Shimmer, a network that has struggled to gain traction among developers.
IOTA price technical analysis
The daily chart shows that the IOTA price has been in a tight range in the past few days. It peaked at $0.2415 on April 27 and then pulled back to the current $0.2055.
This rebound happened after the coin formed a giant falling wedge pattern, a popular bullish reversal sign. Therefore, there is a risk that the IOTA coin will drop after the Rebased upgrade because of a situation known as buying the rumor and selling the news.
However, a jump above the key resistance level at $0.2415 will validate the bullish outlook and lead to more gains.
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