IOTA Launches Rebased Upgrade, Introduces 10%-15% Staking Yield

IOTA, a distributed ledger technology network, is set to undergo its most significant upgrade to date with the launch of the Rebased upgrade. This upgrade, which has been in testing for months, is expected to introduce substantial changes that could position IOTA as a viable alternative to popular blockchain networks such as Ethereum, Solana, and Sui.

The Rebased upgrade will introduce smart contracts to the IOTA network, enabling developers to build applications in various sectors, including gaming, decentralized finance (DeFi), and stablecoins. This marks a significant shift from the current version of IOTA, which uses a technology known as tangle. Tangle employs a directed acyclic graph (DAG) approach, where each transaction confirms the two previous ones, eliminating the need for miners as users validate their transactions themselves.

With the Rebased upgrade, the network will transition from tangle to a smart contract chain powered by over 150 validators, including Nansen and Blockspace. These validators will confirm transactions within the network. Additionally, the upgrade will introduce staking, allowing investors to earn an annual yield of between 10% and 15% over time, a notable change from the current scenario where investors do not earn anything.

The Rebased network will also feature the Move Virtual Machine, which will power its smart contracts. The developers aim for the network to handle over 50,000 transactions per second, significantly higher than most current blockchains. The network will also offer low transaction fees, sponsored transaction fees, and storage deposits. Furthermore, the upgrade will include an integration with the Ethereum Virtual Machine (EVM), enabling apps created on the IOTA network to communicate with those built on the Ethereum network.

The Rebased upgrade presents both opportunities and risks for IOTA. On the positive side, the upgrade could enhance IOTA's capabilities, potentially boosting its price in the long term. A similar transition, such as Sonic's move from Fantom earlier this year, has seen significant traction and pushed its total value locked to over $1 billion. However, the risk lies in the highly saturated crypto industry, where hundreds of chains offer unique solutions. IOTA has previously attempted to improve its network with the launch of Shimmer, but it has struggled to gain traction among developers.

Ask Aime: What's the impact of the Rebased upgrade on IOTA's growth potential?

Technical analysis of IOTA's price shows that it has been trading in a tight range in recent days, peaking at $0.2415 on April 27 before pulling back to the current level of $0.2055. This rebound followed the formation of a giant falling wedge pattern, a popular bullish reversal sign. However, there is a risk that the IOTA coin could drop after the Rebased upgrade due to a phenomenon known as "buying the rumor and selling the news." Conversely, a jump above the key resistance level at $0.2415 could validate the bullish outlook and lead to further gains.