CandleFocus

Why IOTA’s Supply Increase Isn’t a Threat: Inflation and Ecosystem Growth Key

Author: Content Editor
In September last year, IOTA announced that it would increase the supply of its tokens from 2.79 billion to 4.6 billion. Some analysts have suggested that the influx of new tokens has affected the price of IOTA negatively. However, a community member argues that what the ecosystem builds on the network is more important than token inflation. Since the announcement, IOTA's price has dipped but also reached a yearly high in March. The community member points out that the token supply increase of 24.5% has not negatively impacted IOTA's value as much as anticipated. They highlight that token inflation is common in many crypto projects, and the growth of the ecosystem and new technological advancements are more significant factors for long-term value. IOTA is currently trading at $0.1169, with a slight dip in the past day.

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