Current Token Price
Professional price predictions
Here you can find analyses regarding the potential future value of the IOTA token. Please always keep in mind that these analyses are hypothetical and use a lot of assumptions. IOTA still is a high risk investment and the value of the token could also drop to a value of 0.
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Why should the token price increase?
IOTA is creating a completely new ecosystem in which various services can be offered or purchased autonomously. Therefore, the following points, among others, will cause an increase in the price of the tokens:
1) The price of all cryptocurrencies (except stablecoins) is not determined by states as with fiat-money, but only by supply and demand. The number of IOTA tokens is limited and all of them are in circulation so every use case will reduce the supply of tokens and thus increase the price. The increasing adoption in the industry and IoT will generate an ever increasing demand and the capital needed to keep future applications running will be huge. Below are a few examples that could cause a shortage in IOTA tokens:
- No inflation: The number of tokens is limited and all IOTA tokens are already in circulation.
- Mana: Every node that wants to participate in the network needs the IOTA token. This is because only the token generates Mana and without Mana only very limited participation in the network is possible. Should the network be close to its processing capabilities, someone who wants to make many transactions in a short time will need Mana for the executing node to be favored over other transactions (possibly spam). This can best be compared to buying a higher bandwidth from an Internet provider.
- International exchange medium: If you want to implement cross-country and cross-company processes, trade or logistics between machines these transactions can take place without much delay and without having to agree on a trading currency etc. The only requirement is that machines have direct access to a stock exchange either directly or via a financial service provider to make conversions. This could be, for example, the house bank of a company, which keeps the fiat accounts anyway.
- Anyone who supplies data (sensors, etc.) and offers them on marketplaces can be paid with IOTA tokens.
- The targeted protocol standard for M2M payments in industry 4.0 is adopted.
- Machines or devices pay each other autonomously for services (machine economy).
- Smart Mobility: Sharing concepts, compound tickets.
- Car wallets enable a variety of autonomous services, such as Jaguar Land Rover.
- Data marketplaces: Purchase or sale of data using IOTA tokens, for example Industry Marketplace 4.0 with ECLASS, Telco Asset Marketplace, Maschinendatenmarktplatz.NRW or the Senseering – MyDataEconomy platform.
- Feeless micropayments are only possible with the IOTA token. There is currently no comparable technology (sharing, streaming, payment by data points).
- IOTA token as currency in games: See Gaming.
- Smart Cities: Here, all services could be paid for with IOTA tokens.
- Firefly Wallet gets the function of a “messenger with payment function”. The user should be able to handle cryptocurrencies as easily as when sending text messages or scanning a QR code.
- Firefly Wallet will allow third party apps in addition to the easier and faster buying/selling of MIOTA. It will also allow exchange transactions of EUR / MIOTA in real time (module with bank license and direct bank account). A bank that would offer this real-time service would always have to keep a large stock of IOTA tokens.
- Native tokens (digital assets) are injected into the IOTA ledger by users. Therefore, they are also called user-defined tokens. They consume valuable resources of the nodes that maintain the network, mainly storage space. As a result, each account holding native tokens must post a deposit in IOTA coins to compensate for the excessive resource consumption.
- IOTA Smart Contracts: For the original transaction and the initialization request to create an SC at least 2 IOTA tokens are needed to create a SC. SCs will greatly expand the use of the IOTA token because IOTA tokens are held and moved by the SC. IOTA tokens are also used when a particular SC requests them to pay SC processing fees (rewards).
- Staking in IOTA Smart Contract Protocol: The validator uses his own tokens as proof of trust and risks losing the stake if he provides a demonstrably invalid result. However, staking does not become mandatory. The ISCP is flexible, so that everyone can secure their created SCs as they wish.
- A lot of new ideas and business areas will emerge in the new IOTA ecosystem and use the IOTA token for value transfers.
2) Speculation: When the first real applications are running, IOTA will be in the public’s and investors’ focus. IOTA does not yet have any metrics for the current price. With IOTA it is only about metrics as soon as the real economy uses the protocol and also transfers monetary values via it. Then serious investors or speculators can think about how the ecosystem will grow or shrink and estimate the likely price based on these calculations. Ultimately, pure fantasy and the greed of new investors will drive the price (see Tesla).
3) Value transfer (value storage): Why should the IOTA token not be able to establish itself as an alternative pure currency? With increasing use cases and growing acceptance from industry or implementation as a payment function in smart cities, stores, games, etc. this is more likely than many think.
4) The DeFi Snowball Effect (by User TangleAccountant – Discord)
Once with smart contracts the IOTA DeFi ecosystem starts to grow, the value of IOTA will increase due to the snowball effect, in the course of which the token price will also adjust to the increasing value.
It will start with basic tokenomics first, as more and more people realize that the token has value in its growing ecosystem. For example, the security of the token will be used to create stablecoins because you need the option of stability when working with large sums of money. Similar projects to MakerDAO will be created in the Tangle.
No one wants to watch their FIAT money in the bank account get devalued due to inflation as time goes on. This means that wealthy people will be looking for a way to lend their money to earn a safe return, and of course there will be speculators waiting to borrow that wealth to speculate.
This is when protocols with the characteristics of, for example, Aave or Compound will appear in the tangle. The advantage with this type of protocols is that if you use this protocol, you will also be rewarded with the protocol tokens. These tokens usually give you governance rights and often the ability to stake the tokens to get a portion of any fees from the protocol as a reward.
With these types of protocols, tokens other than just IOTA tokens are now floating around in the Tangle and also represent real economic value.
What happens next? The ability to trade all of these new tokens will begin with a decentralized exchange like TangleSea or TangleSwap. This is also when the DeFi ecosystem will explode. Various applications will pop up in the Tangle in the future offering their services.
Similar to ETH, the common denominator for all these new applications will be the native IOTA token. All successful ETH applications use the ETH token as money. This allows users to use their existing ETH balance in the different applications. Thus owning more ETH also became more useful, so people bought more ETH.
This means that all new applications in the Tangle need to find a way to incorporate the IOTA token, because this is what gives them the highest probability of success in the IOTA ecosystem. This in turn increases the value of the IOTA token (snowball effect).
The IOTA token will enable all DeFi applications in the future with feeless transactions. The service of the respective application will of course have to cost something.
Options and futures can be traded.
Insurance can be taken out, for example to reduce the risk for the smart contracts.
Predictions can be made to profit if you are right.
Synthetic assets can be created so that Apple stock, for example, can be purchased without ever leaving the IOTA ecosystem.
Everything you can do today in the current financial system will be replicated on IOTA.
Suppose you can convert a portion of your portfolio into a stablecoin and send it to, say, Coinbase to pay your bills each month with one of their debit cards (until regulators allow the widespread use of stablecoins). Would you ever actually need to leave the IOTA ecosystem from an investment perspective? Thinking about it, there is actually no reason why you should go back to the FIAT financial system.
Last Updated on 4. December 2021