IOST price prediction: Will volatility continue?
IOST surged in price last year, but has yet to witness anything like its 2017 highs
Developed in January 2018, IOST is an “ultra-fast, scalable and secure blockchain network” with a mission, according to its website, to be “the underlying architecture for online services that meets the security and scalability needs of a decentralised economy”.
IOST is the native token of the ecosystem. Users can stake and trade IOST, and it serves as the medium of exchange for all transactions and commission fees. IOST is based on the ‘proof-of-believability’ (PoB) consensus algorithm.
IOST says it is able to handle 100,000 transactions per second, and that the system is capable of handling the high traffic volume necessary for widespread blockchain adoption. According to its website, the IOST blockchain has the capacity to process at 0.5 seconds per block, compared with 15 to 17 seconds on Ethereum.
While the promises of Web3 and total decentralisation have yet to materialise in any significant way, IOST is attempting to position itself as the backbone of this new future system by offering much greater efficiency. The ecosystem has managed to secure some top partnerships and establish itself as an important crypto to watch.
The IOST ecosystem has produced plenty of project developments, including in the NFT space, in an attempt to stay ahead in the rapidly maturing crypto asset industry.
But how does this affect the IOST price prediction? Before trying to work out the future of the coin, let’s take a quick look at who founded it.
Founders of Iost
The co-founders and key executives of IOST include Jimmy Zhong, Terrence Wang, TianCheng Li and Ray Xiao. Most were successful entrepreneurs before setting up IOST, with degrees in computing science or engineering.
Zhong successfully launched several other tech start-ups in China and the US before founding IOST, including Dora.
Wang, a computer scientist, previously worked as a software engineer for Uber. He has degrees from the University of Minnesota and Princeton.
Li studied maths and computer science. Before setting up IOST, he worked as an investment banking associate at Goldman Sachs, and as a data scientist at Mobike.
Xiao, a co-founder of Dora, studied computer science and economics.
From the IOST whitepaper
The IOST whitepaper proposes “the Internet of Services, an innovative and secure blockchain paradigm designed to provide horizontal scalability and high transaction throughput”.
The document states: “Despite the recent hype in the cryptocurrency market, the underlying blockchain technology is still at an early stage and is far from mass adoption. One of the well-recognised issues with current blockchain technologies is scalability. Without the capability of processing large volumes of transactions swiftly, heavy usage services like Facebook, Amazon and digital asset exchanges are nearly impossible to deploy onto the blockchain.”
IOST aims to implement a “novel sharding architecture and consensus mechanism, which is capable of processing up to 100,000 secure transactions per second”.
IOST: Past performance
Looking backwards gives few clues for an IOST crypto price prediction, but the IOST coin price surged immediately after its launch in January 2018. From $0.03748 on 18 January 2018, the price rose to a record-high close of $0.1268. The coin then slipped to $0.02922 in early February.
The market remained bearish about IOST for the remainder of 2018, 2019 and 2020. IOST began to surge again in 2021, reaching $0.08002 on 15 April 2021. Despite dropping to $0.0161 on 22 June 2021, the price jumped substantially three months later, hitting $0.0798 on 9 September 2021.
The IOST cryptocurrency fell further towards the end of the year and opened on 1 January 2022 at $0.0313. From the end of January, the coin traded sideways between $0.02 and $0.03 until mid-March. The token met a four-month high of $0.05401 on 31 March.
On 12 April, the IOST Foundation announced a $100m incentive fund, looking to entice EVM (Ethereum Virtual Machine) developers to its ecosystem. More recently, the team announced that they were ready to launch their algorithmic stablecoin on Twitter:
However there were numerous challenges discovered, including: “Confirming the veracity of oracle price feeds”, “controlling scarcity to provide price stability and cope with deflationary costs”, and “building a short-term price arbitrage model to reduce short-term price volatility”.
Recent broader market activity, including the failure of Terra Luna and the depegging of the UST stablecoin, as well as the financial validity of overcollateralisation, have posed a legitimate threat to the launch of any stablecoin.
IOST experienced significant volatility over the course of 2021, seeing highs around the $0.078 mark in April and September, but the token has yet to trade near its all-time high of $0.1365, achieved in January 2017. The significant downtrends and multiple network crises have resulted in many cryptos underperforming so far in 2022.
On 24 August 2022, at the time of writing, the token was trading at $0.01343. With a circulating supply of 18.59 billion tokens and a maximum supply of 90 billion tokens, the current market cap sits at around $250m, making it the 125th-largest crypto by that metric.
So, how do these figures affect the IOST coin price prediction for 2022 and beyond?
It is important when looking at predictions to remember that, while they can be helpful as an indicator of which direction the price may move in, they should be viewed as possibilities rather than absolutes. This is especially the case when looking at long-term forecasts, as these can sometimes be completely off the mark. This is due to the inherent volatility of the crypto market, as well as the many unknowns that could affect future prices.
DigitalCoinPrice makes an IOST price prediction for 2022 suggesting that IOST could be worth $0.0194 in September and $0.0180 in December. The site suggests a year-on-year general uptrend, and the token should be worth an average of $0.0192 in 2023 and $0.0201 in 2024.
The website’s IOST price prediction for 2025 stands at an average of $0.0256 for the year. In 2026, it thinks the coin could be worth the lower value of $0.0251, and in 2027 the site suggests an average value of $0.0307. The site’s IOST price prediction for 2030 is $0.0617.
WalletInvestor thinks IOST is a “bad long-term (one-year) investment,” and suggests it will be worth less than $0.002 in a year’s time.
Gov Capital, in a significantly more optimistic IOST crypto price prediction, estimates the IOST price could be $0.0374 in a year and $0.173 in five years’ time.
The Iost network is clearly impressive in its unique offering, its experienced team and its ambitious mission. If the transition towards Web3 materialises, IOST could perhaps become the backbone of the new decentralised system.
At the moment, however, this is all speculation.
Is IOST a good investment?
It may well be. It is led by a great team, has developed impressive partnerships and if its claims of being far superior to other blockchains prove accurate, it could become an important ecoystem in the future.
Saying this, remember that the crypto market is highly volatile and the price of all tokens and coins can go down as well as up. IOST has experienced a lot of volatility this year, which is important to keep in mind.
Will IOST go up?
A majority of the algorithmic forecasts predict a price increase, but these predictions do not take into account all market conditions. The current bear market has led to most cryptocurrencies underperforming in 2022.
Remember that forecasts, especially longer-term ones, are better viewed as indicators rather than absolutes.
Should I invest in IOST?
Investing is a highly personal endeavour. Do your own research and try to stay up-to-date with any developments within the IOST ecosystem that could boost or hinder its future prospects.
Remember, investing can be risky, and it is important never to invest more money than you can afford to lose.