IOTA’s rally has slowed down a bit recently, with the price of this coin remaining at the same level week-over-week. Investors are focused on the ongoing developments at Shimmer and whether the ecosystem can continue to grow.
IOTA is currently trading at around $0.22. The market capitalization of this cryptocurrency is $611 million.
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Recent developments with Shimmer
IOTA launched the Shimmer network in 2022, which is the largest development in the history of this ecosystem to date. Shimmer describes itself as a scalable network that enables interactions between users in a decentralized way and without any intermediaries at all. It also acts as a playground for decentralized applications in the IOTA ecosystem.
As I wrote last week, Shimmer most recently launched its EVM test network. An EVM (Ethereum Virtual Machine) is software that allows developers of various blockchains to scale their applications.
The first stage of the Shimmer EVM is known as the Magic Smart Contract – it enables seamless native asset transfer between Shimmer and EVM chains without the use of bridges. Eventually, it will be easy for users of smart contracts on IOTA to transact with Ether and other tokens that exist in the Ethereum ecosystem.
Partnership with Multichain
The latest news from this ecosystem concerns the partnership with Multichain. It is a DeFi protocol formerly known as AnySwap that facilitates interoperability between different blockchains. This partnership aims to enable seamless interoperability between IOTA, Shimmer, and ShimmerEVM.
While IOTA developers and some investors believe it will lead to ecosystem growth, I am skeptical on this front. There is simply too much competition among platforms offering smart contracts.
In recent years, the number of such platforms has grown rapidly. In addition to the leading Layer 1 networks such as Ethereum, Avalanche, BNB Chain, and Tron, there are such fast-growing Layer 2 networks as Arbitrum, Polygon, and Optimism.
There are also concerns about IOTA’s tangle technology. This is because, unlike Ethereum and other crypto projects, IOTA is not strictly speaking a blockchain. Here, data is grouped and intertwined as so-called tangles. A blockchain, on the other hand, is a series of linear, cryptographically linked data blocks. Tangle is criticized for, among other things, the high costs required to maintain decentralization and security.
IOTA Price Forecast
The price chart shows that IOTA has been in a slow uptrend over the past few days. During this period, the coin managed to move above the key resistance at $0.2325, which was the highest point on March 18. The current price is well above the lines of the moving averages of the last 25 and 50 days, as well as the Fibonacci retracement level of 50%.
So, based on technical data, there is a likelihood that the coin will continue to rise as buyers target resistance at $0.25. However, in the long run, I have doubts about the success of IOTA and Shimmer.
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