This is an original market analysis from the SSB team over at SSBserious — home to serious SSB market discussion of bigger projects!
In an immensely short period of 7 days, MIOTA surged an unexpected ~95% since early September briefly touching above $2.00 in a definite first since April of 2021. As many are familiar, IOTA is facing a brief resurgence in popularity due to resurfacing proprietary developments that incited speculation over the resulting effect it could potentially cause within the cryptocurrency space, especially within the market niche of increased integration into IoT (Internet of Things) ecosystems. Even with this prospect in mind, this sudden jump unsettled many considering the market as a whole is still creeping up bit by bit, without a similar “majors” volume increase to possibly justify it. For this reason, we’ve evaluated factors related to both development and community that have led to this sudden price movement:
🔶 Possibility of a Short Squeeze
In relation to various small investors on existing crypto subforums, there exists the narrative of a possible coordinated short squeeze in progress. Short sellers, eager for the price of MIOTA to fall, seeked to hold short positions in various derivative markets. Due to the significant degree of short-sellers, a subsequent unexpected fluctuation in price that is greater than usual will cause these sellers to cut their losses and hedge therefore “buying back” the cryptocurrency at a much higher price. In the case of MIOTA, this coincidental cutting of positions caused the sudden spike in price observed on Thursday and Saturday respectively, hinting at a first phase of a short squeeze.
🔶 Release of the Hornet Update
Released on September 2, MIOTA’s rally points toward the great amount of anticipation surrounding the Hornet Update, reintroducing Autopeering, allowing nodes to “choose” their neighbors without intervention from the node operator, as well as the integration of a Faucet plugin. This would overall enable node operators to create a “private” Tangle, therefore enhancing security and usability. Understandably, this news would resound throughout the IOTA community, reinvigorating the hype extending beyond the community itself.
🔶 Interest and Speculation on New IOTA Features
Aside from the Hornet Update, there are several other features in progress as revealed in IOTA’s roadmap. As time progresses, each goal is marked by a new achievement or milestone crucial to attaining a defined central objective, including those related to major upgrades to the IOTA protocol, application software such as Firefly and Bee, and tools and libraries essential to the IOTA platform. So far, IOTA’s relative transparency as well as keeping pace with the current roadmap has clearly convinced various investors as to its reliability as a vessel of progress for future IoT projects.
A Brief IOTA Analysis (Why should I consider IOTA?):
Founded in 2015, IOTA’s central purpose is to add additional functionality and use of crypto through integration into the Internet of Things ecosystem, an increasingly important economy in a current environment favoring cloud-based solutions. The heart of IOTA’s network is known as the Tangle, a variant of a directed acyclic graph in order to solve the familiar issues of scaling and energy invested into mining. Due to this organization of the Tangle, transactions on IOTA involve virtually no fees and near-infinite scaling as the Tangle treats each transaction individually unlike existing blockchains, therefore allowing for near-instant confirmation times. The roadmap reveals several interesting developments in progress assisting with functions designed for IoT. Holding a substantially unique usecase, many are insistent that IOTA is largely promising and laden with potential, asserting the project will complete its initially envisioned plans within the near future.
Coinciding with this 95% rise, it is confirming, with no doubt, that IOTA is attempting to re-establish itself with highly anticipated plans involving Coordicide, Smart Contracts, IOTA Streams, etc. For this reason alone, IOTA appeals to a multitude of investors with a flexible, long-term mindset, willing to consider IOTA’s potential rather than be trapped in the project’s past difficulties. This recent price rally is highly indicative of a gradual willingness to acknowledge IOTA’s recent developments as more attention is drawn to the project, and as a result, help become the driving force behind IOTA’s redirection and inevitable new future.
Thanks for reading gang and remember, this is not financial advice!