Islamic Coin Surges 470% on Ethiq Launch as Market Sees Price Volatility

Islamic Coin (ISLM) saw a dramatic price surge on Jan. 9, 2026, rising 470% from under $0.01 to nearly $0.06 within 24 hours. The asset stabilized around $0.045–$0.05 afterward but retained much of its momentum. The move marked the largest gain for ISLM in recent memory and pushed its market capitalization from $23 million to over $120 million.

The price movement coincided with the official launch of Ethiq, HAQQ’s Ethereum Layer 2 (L2) solution. Ethiq is positioned as a modular and secure blockchain solution built on the Optimism OP Stack. It is fully Ethereum Virtual Machine (EVM) compatible and designed to support Shariah-compliant decentralized applications (dApps).

ISLM’s rapid price increase reflects growing interest in blockchain technology within Islamic finance. The token now ranks among the top performers for the week, despite its controversial history of fundraising transparency and past regulatory issues.

Why Did This Happen?

The Ethiq Layer 2 mainnet launch is the primary driver of ISLM’s recent price explosion. The platform’s technical architecture inherits Ethereum’s security while offering modularity and interoperability. This combination makes it attractive for developers seeking to build Shariah-compliant blockchain solutions.

HAQQ’s strategic rollout is part of a broader trend in blockchain adoption across Islamic financial systems. Ethiq’s integration with Ethereum’s infrastructure is expected to expand the token’s utility and user base.

How Did Markets React?

The market reaction has been significant. ISLM’s market capitalization jumped from around $23 million to over $120 million, pushing it into mid-cap status. This valuation shift has made ISLM one of the most talked-about tokens in the current crypto landscape.

Traders and investors are closely watching the token’s price movement. The surge has drawn attention from both retail and institutional participants, many of whom view ISLM as a speculative bet on blockchain innovation within Islamic finance.

Despite the positive momentum, the token’s historical volatility and regulatory controversies remain a concern. Critics argue that ISLM’s marketing as an “ethics-first” asset may clash with the speculative nature of digital assets.

What Are Analysts Watching Next?

Technical indicators suggest the token is in overbought territory. The relative strength index (RSI-14) reached levels above 90, signaling extreme overextension. Even after a minor pullback, the asset remains in overbought conditions, raising the possibility of a correction.

Analysts are also watching the moving average convergence divergence (MACD) histogram, which confirms a strong bullish crossover. However, the widening gap between the MACD and Signal lines indicates a parabolic blow-off structure. This pattern typically precedes a period of consolidation or a sharp reversal.

Short-term traders are focusing on key price levels. A break above $0.055 could test the $0.086 resistance. However, the extreme verticality of the move raises the risk of a liquidity grab by early buyers, potentially triggering a sharp correction.

The broader market is also tracking the performance of other Islamic finance-related tokens. Recent developments in DeFi lending platforms and gold-backed stablecoins suggest growing interest in blockchain applications within the Islamic finance sector.

For now, the momentum remains strong. However, investors should remain cautious given ISLM’s controversial narrative and the potential for a market-wide correction. The coming days will be crucial in determining whether the surge is sustainable or a short-lived speculative frenzy.