IOTA has failed to benefit from the bull run of 2021 as it could not break the all-time high established in 2018. Nonetheless, the cryptocurrency was still able to give out a good performance. The cryptocurrency was in a phase of consolidation since October and moved with high volatility but in a contained price range. The consolidation period ended in December with the token falling downwards. However, the market appears to have reversed its trend as the token is now moving upwards. At the time of writing, the cryptocurrency stands at a price level of $1.28. The price has increased by 16% during the past twenty-four hours while the trading volume has surged upwards by more than 300%.
What is IOTA?
Iota is a distributed ledger but it is not an ordinary one. What sets the network apart is that despite being a distributed ledger, it is not a blockhain. Instead, it is a propriety technology known as Tangle. Tangle is essentially a web of nodes that are utilized to validate transactions on the network. Through the Tangle technology, the network eliminates a lot of the inefficiencies that are found in even the most advanced of blockchains. First of all, as it is not a blockchain there is no mining or miners which means costly mining fees are cut down. Secondly, the architecture of the technology enables the network to aim for limitless throughput. It is also poised to facilitate the growing Internet of Things.
Recent development
IOTA staking for the Shimmer Network (SMR tokens) and Assembly Network (ASMB tokens) starts today. The network has officially launched Firefly 1.3.0 which is the secure entry point to the ecosystem. With the launch of Firefly, the staking functionality is fully integrated and token holders can stake MIOTA tokens in order to earn returns in SMR and ASMB tokens. Users can choose between SMR and ASMB for their rewards and no additional costs or penalties will be incurred to them. The pre-staking period will last seven days from today. The rewards will begin to be transferred to token holders on 28th December and for 90 days after that.
Moreover, IOTA has also been selected for the development of the European Blockchain Services. The network was among the top five contractors selected for the second phase of the European Blockchain Pre-Commercial Procurement. Further developments are expected to take place on this front in the coming year.
