While the Bitcoin price rally has grabbed investors’ attention, another digital coin has also been making waves in the cryptocurrency space. Over the past week or so, the IOTA price has seen an impressive increase of over 100 percent, which has allowed it to leapfrog more established digital currencies such as Litecoin and Dash in terms of market capitalisation. It is currently the fifth-largest cryptocoin on the market, with a total market value of just over $3 billion.
So what is the reason for this remarkable rally? One driver may be IOTA’s technology, which relies on a unique protocol dubbed the Tangle. IOTA describes it as a “next generation blockchain”, which aims to solve some of the problems associated with traditional cryptocurrency networks, such as Bitcoin and Ethereum. It is designed to be scalable, lightweight and with the ambitious goal to become the backbone of the Internet-of-Things.
Recently the IOTA Foundation announced an upgrade to Tangle, as well as a number of partnership with organisations such as Refunite, Imperial College London & F6S, UCL & UC Berkeley, and several healthcare providers in Norway.
According to online publication Wealth Daily, another factor driving the increase may be Bitfinex’s recently-announced decision to discontinue service to US customers. In June the Hong Kong-based digital currency exchange became the first trading platform to allow IOTA trading and its example was only recently followed by another Asian exchange – Bit520. Wealth Daily suggests that Bitfinex’s announcement may have prompted some of its US clients to buy IOTA while they still have the chance.
The last few days have indicated that IOTA investors might be starting to pay a closer attention to the new coin. And the IOTA price has continued to impress in today’s trading. As of 14:46, the digial coin was changing hands at $1.09, up 15 percent from the same time yesterday.