IOTA price had a strong performance this week as it regained momentum. The token went vertical and surged to a high of $0.2900, the highest point since November last year. It has soared by over 83% from the lowest level in 2023.
There are three main reasons why IOTA was one of the best-performing cryptocurrencies this week. First, the rally was in line with the performance of the crypto industry. Bitcoin surged to $38,900 on Friday, the highest point in over 18 months.
IOTA price chart
Bitcoin has been in a strong uptrend in the past few months as optimism of a spot Bitcoin ETF jumped. Several companies like Blackrock, Invesco, and Franklin Templeton have all applied for such an ETF.
Further, there are rising hopes that the Federal Reserve will start cutting interest rates in the first half of 2024. In one of the most notable statements of the week, Bill Ackman predicted that the bank will cut rates in the first quarter. Ackman has been quite right about the Fed and bonds several times this year.
The other big catalyst for IOTA news came from Abu Dhabi, where the IOTA Foundation received registration from ADGM. The organisation became the first distributed ledger technology (DLT) to be registered in the country.
As part of this registration, the foundation will seed it with $100 million in IOTA tokens, which will be vested in the next four years. This is a substantial sum considering that IOTA is valued at over $830 million. It has a maximum supply of 4.6 million, with over $3 billion being in circulation.
Further, IOTA’s open interest in the futures market has surged to a record high. Data compiled by CoinGlass shows that the open interest rose to an all-time high of over $43 million. Its previous record high happened in October 2021.
Open interest is an important measure in the crypto industry that looks at the amount of unfilled orders in the futures market. A higher number is a sign that the asset has higher demand.
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