IOTA’s Price Drops 41% Following Rebased Upgrade

The IOTA Rebased upgrade consequences are critical, as investors seem unconvinced. A significant price drop signals broader implications for trust and adoption in the cryptocurrency market.

IOTA’s Rebased Upgrade Highlights

IOTA’s Rebased upgrade, launched on May 5, 2025, aimed to introduce smart contracts and full decentralization. The upgrade replaced the Firefly wallet and altered the staking system, impacting users’ overall interaction and adoption.

Dominik Schiener, Co-Founder & Chairman of the IOTA Foundation, stated, “IOTA’s technical upgrades are designed to enhance user experience and increase developer engagement.”

Despite high expectations, the market’s response was muted, with prices dropping from $0.2746 to $0.15, a 41% decline.

Market Reaction and Consequences

The price drop reflects broader market uncertainties, affecting investor confidence. IOTA saw significant disengagement, with transaction volumes falling 86% and only 8,376 active addresses.

With only $9.76 million in total value locked, IOTA’s ecosystem lags behind. The high-staking rate of 13.47% hasn’t translated into user growth, indicating challenges for long-term success.

Historical analysis suggests that IOTA needs to increase adoption and on-chain activity to recover. Efforts must focus on converting the technical upgrade into tangible growth to stabilize prices and gain user trust.