3 reasons why IOST price has risen 650% in 2021

Keeping up with the latest trends in cryptocurrency is essential for projects that want to remain relevant and continue to gain market share. The hype is currently revolving around decentralized finance (DeFi) and NFTs (non-exchangeable tokens) – and IOST is one protocol that has taken advantage of these growing movements to help expand its community.

Data from Cointelegraph Markets and Tradingview shows that the price of IOST, the digital asset ranked 78 by market value, rose 650% since Jan.8, from $ 0.0058 to $ 0.045 on February 17, its highest since June 2018.

IOST / USDT 4-hour chart. Source: TradingView

Three reasons for the strong price performance so far in 2021 include its entry into the DeFi arena, the addition of an NFT function along with a new marketplace where users can buy and sell items, and increased support for bets from the top exchanges, which resulted in a significant increase in the token’s trading volume.

IOST enters the field of DeFi

The central role of DeFi in expanding the cryptocurrency ecosystem cannot now be denied, and the developers at IOST have recently taken steps to capitalize on this growing trend.

Network congestion and high gas fees on Ethereum (ETH) have led cryptocurrency traders to search for alternatives outside the Ethereum network, and IOST is now emerging as one of those options as a result of its partnership with the new DeFi platform Donnie Finance.

The partnership was in the beginning Advertise On December 4, 2020, and is now preparing for its official launch on February 18th, which will enable IOST holders to share their tokens in the protocol to participate in the governance of the platform as well as earn native DON tokens.

The IOST token price also received a boost after it was announced that 10% of the total DON supply will be air-dropped to IOST token holders as a way to help them participate in the newly launched DeFi platform.

The introduction to NFT helps promote community participation

Similar to the CryptoKitty craze in the 2018 bull market, NFT has once again emerged as a hot topic in the cryptocurrency space.

After releasing its IRC-722 NFT standard in April 2020, IOST has jumped into the NFT arena by partnering with Japanese blockchain game developer Platinum Egg and creating the TokenLink NFT market.

TokenLink is designed to allow IOST players to trade NFTs and game items in a safe manner.

The beta version was launched from the market in January of 2021 and is available for community members to try it through CrossLink Object Trading, a strategy game linked to GPS developed by Platinum Egg and released in September of 2020.

IOST was also chosen by Japanese regulators to demonstrate how NFT can be applied to peer-to-peer electricity circulation and medical data sharing by using NFTs to serve as liquid intellectual property (IP) in secondary markets.

Support exchange and increase in volume

The third driving force behind IOST’s recent price growth is the addition of betting on several cryptocurrency exchanges including Binance and Huobi.

With DeFi growing and offering token owners to earn a return on their property in a decentralized manner, centralized exchanges have increasingly been forced to offer higher-return investment products in order to attract liquidity and users.

During January, several major exchanges announced that they would add support for IOST Staking, with the APY ranging from 20% on Huobi to 54.49% on some Binance contracts.

The partnership with Huobi also included the addition of stable HUSD to the IOST ecosystem, an important development as it is the first stable coin on the IOST blockchain, which should bring new liquidity to the DeFi ecosystem.

Rising fundamentals and market sentiment bolster IOST

According to Cointelegraph Markets Pro data, market conditions for IOST have been favorable for some time.

For example, the VORTECS ™ score, exclusive to Cointelegraph, is a mathematical comparison of historical and current market conditions drawn from a set of data points including market sentiment, trading volume, recent price movements, and Twitter activity.

Cointelegraph Pro Markets VORTECS ™ result (green) vs. IOST price

As shown in the chart above, the IOST VORTECS ™ result began to rise on February 15th, about 48 hours before the price rose 80%.

Since January 8th, IOST turnover has also seen new record daily volumes, which have crossed $ 1 billion as interest in the protocol continues to grow.