+200% on the day, +380% over the last 7 days. The recent evolution of IOTX is enough to make the cryptocurrency market go crazy. Here, we will try to understand why the craze is such but also and especially if it can last in the longer term.
IoTex: Project Details
IoTex is a decentralized finance project that tackles the decentralization of the internet. A market that on paper seems colossal. Focusing on the Internet of Things (IoT) to give control back to users, while trying to limit the impact that institutions can have.
Good to know: According to data reported by IoTex, the Internet of Things could encompass over 100 billion devices by 2050. That is 10 times more than the estimated human population at that time.
The protocol promoted by IoTex is based on the principle that the Internet of Things is everywhere. But that it is all too often in the hands of large institutions and governments. Institutions that can then easily access a huge amount of user data. To counter this and this Big Brother scenario, IoTex intends to build an ecosystem in which objects and users can interact in conditions of complete confidentiality. This is an extremely ambitious project in view of the recurring questions about the use of user data. That’s why IoTex talks about the Internet of Trusted Objects.
The IOTX token
The IOTX token is the governance token of the IoTex project. The following graph shows the price of the asset over the last 12 months:
If the first 6 months remained relatively calm, with a fairly low trading volume, it is more the second part that will interest us.
In February, the project took off again. Then stuck under the 0.01 USD mark, the token quintupled its price to find itself at the edge of 0.03 USD in mid-February. A positive trend that will last until April 30. For a peak quite close to 0.08 USD which will allow the token to exceed its 2018 ATH. This point will then mark the beginning of the correction phase that will push IOTX back to the 0.02 USD threshold.
But since the beginning of August, the token seems to be on a roll. With a slightly upward trend on the first days and a real explosion for about 1 week. A rise all the more visible since 2 days. If a token was trading for 0.03 USD yesterday at the end of the day, the market has since exploded. In particular, it exceeded the 0.10 USD mark at mid-day.
The recent rise in the asset’s price remains largely explainable by the token’s listing on the <a href=”https://cryptonaute.fr/coinbase-avis/” target=”_blank” rel=”noopener”>exchange platform Coinbase, one of the heavyweights in the industry. It is not uncommon to see an asset explode after a listing at Kraken, Coinbase or Binance, the visibility of this one then strengthening considerably.
What to expect from the Project on a Longer Horizon?
At first, we will have to wait for the extent of the correction. A correction that already seems to be taking place since a few hours. Indeed, at the peak of the day around 1pm (French time), a token was trading for a little over 0.12 USD. At the time of writing, the token is fluctuating between 0.09 and 0.10 USD. In an extremely volatile market.
Anyway, the prediction algorithms still don’t seem to have taken into consideration the strong movements of the last few days. Thus, WalletInvestor estimates that the trend could be bearish by the end of 2021. A token could then trade for USD 0.05. At DigitalCoinPrice, the lights seem to be more green. With a price estimate of 0.13 USD for the end of the year. The token could even surpass the 0.20 USD mark during 2022. Nevertheless, the very strong price change of the last few days limits the ability of algorithms to predict. They will have to fully integrate this sudden change in the market.
If we detach ourselves from the prices to focus on the project, it seems extremely ambitious. With an almost infinite field of application and a universe of very broad possibilities.