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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.