IOTA (MIOTA) has been at the forefront of the cryptocurrency market's notable upswing in the last 24 hours. For the first time since May 2022, the digital asset has surpassed the $0.50 mark after soaring by more than 50% in the last day.
According to CoinGecko, this rally increased IOTA's market capitalization to $1.84 billion and its trading volume to $1.26 billion, a 230% increase. A governance vote to upgrade the IOTA L1 Mainnet to the Rebased protocol is being held concurrently with the surge.
Token holders agree to update the IOTA Mainnet to the Rebased protocol that is presently operating on the IOTA Rebased Testnet by voting in favor of this proposal.
Move-based smart contracts, a delegated proof-of-stake consensus mechanism, and the Mysticeti protocol—which promises high scalability with over 50,000 transactions per second and sub-second finality—are among the important features included in the proposed upgrade.
Low transaction fees, adaptive fee burn mechanisms, sponsored transactions, staking rewards, and inflationary tokenomics that aim for 6-7% annual inflation are some additional improvements.
Whether the network switches to the Rebased protocol will be decided during the seven-day voting period, which started on December 2. The IOTA Foundation will look into other network development avenues if the community rejects the proposal.
Investors and analysts have taken notice of IOTA's noteworthy performance, which has led to conjecture regarding the company's and the cryptocurrency market's future directions.
IOTA is currently trading at $0.51. Analysts point to $0.50 as a crucial resistance level, even though IOTA touched $0.52 during its rally. If this level is consistently traded above, it may become support and pave the way for IOTA to reach $1.
It's crucial to remember that the cryptocurrency market is extremely erratic and that prices can change drastically. Even though IOTA's recent spike is positive, investors should proceed with caution and do extensive research before making any decisions.