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- Nearly 48% of IOTA is staked, liquid staking derivatives allow DeFi participation, and rising demand from IOTA-backed stablecoins and the VUSD DEX reduces circulating supply.
- Backing from the TWIN Foundation and initiatives like the Salus Platform, which aims to tokenize critical minerals.
Amid the key developments within the IOTA ecosystem, crypto market analysts believe that the IOTA price could be preparing for a strong upside, similar to the 2021 bull run. In December 2017, the token surged to $5.69 within weeks, demonstrating how quickly momentum can shift. Analysts believe that with stronger fundamentals in 2025, the network is better positioned for a similar breakout.
IOTA Ecosystem Gets Major Boost in 2025
IOTA’s growth trajectory remains intact amid key upgrades and partnerships in the ecosystem, in 2025. Earlier this year in May 2025, IOTA introduced the Rebased mainnet, which is a modern Layer-1 network with Move smart contracts, staking, and Gas Stations.
The upgrade shifts IOTA from a primarily data-focused ledger to a high-performance smart contract platform. Furthermore, it also enables support for a wide range of decentralized applications.
Moreover, the blockchain network has secured institutional backing as the TWIN Foundation, supported by organizations including the WEF, EU, and Trademark Africa, is pushing IOTA into global trade finance infrastructure.
On the other hand, the blockchain is making inroads in the decentralized finance (DeFi) space. Several IOTA-based protocols such as SwirlStake, Virtue Money, and Pools Finance are driving total value locked (TVL) higher.
Supply Crunch Could Drive Price Higher
IOTA’s circulating supply on centralized exchanges is steadily declining, driven by multiple factors boosting token scarcity and utility. Nearly 48% of all IOTA is staked to secure the network, while liquid staking derivatives from SwirlStake allow staked tokens to remain active in decentralized finance (DeFi) applications.
In addition, growing demand for IOTA-backed stablecoins and the VUSD perpetual decentralized exchange (DEX) is creating consistent token usage, further reducing the available supply on centralized platforms.
IOTA/USDT weekly chart displays a classic symmetrical triangle pattern that has been forming over an extended consolidation period. Market analysts believe that an breakout from this could trigger a rally to $1. and $2, in the upcoming altcoin season.
$IOTA is taking time but eventually it is going to go $1.00 and $2.00.
Altseason is coming and this base is going to expand! pic.twitter.com/Gue2ikofIW
— Jesse Peralta (@TheJessePeralta) September 20, 2025
With tightening supply, expanding DeFi adoption, and major institutional pilots underway, IOTA is positioning itself as a backbone for tokenized trade finance. Market observers warn that once sentiment flips, IOTA could deliver another rapid breakout, echoing its historic run but on a much larger scale.