On January 9th, Islamic coins saw a dramatic rally, jumping 470% from less than $0.01 to nearly $0.06 in 24 hours, before stabilizing around $0.045 to $0.05.
Ethiq Layer 2 Mainnet
Islamic Coin (ISLM), the native utility token of the HAQQ network, triggered a massive market rally in early January 2026. The asset soared from a stagnant base of just under $0.01 on January 8 to a peak of nearly $0.06 a day later, an explosive 470% increase in less than 24 hours.
The price subsequently stabilized in the $0.045-$0.05 range, but this move effectively ended the long horizontal accumulation that propelled ISLM to the top of the global performance chart this week. This price movement triggered a shift in valuations as the market capitalization of Shariah-compliant assets ballooned from about $23 million to more than $120 million, reclaiming its status as a mid-cap contender after months of obscurity.
The main fundamental driver of this vertical movement was the official launch of Ethiq, the HAQQ network’s strategic Ethereum Layer 2 (L2) solution. As announced via X, the HAQQ team has positioned Ethiq as an “integrated value layer,” an anchor for liquidity and applications across the ecosystem.
Ethiq’s technical architecture leverages the modularity and interoperability of the Optimism OP stack while delivering institutional-grade security by inheriting the robustness of Ethereum mainnet. Additionally, full compatibility with the Ethereum Virtual Machine (EVM) provides a seamless migration path for Ethereum developers to build Shariah-compliant decentralized applications (dApps), while serving as an economic engine designed to capture value from network activity and distribute it to the HAQQ community.
innovation and controversy
Despite its successful technical deployment, ISLM remains a lightning rod for debate in both the cryptocurrency and Islamic finance fields. Although supporters have defended the fatwa’s endorsement by internationally respected scholars, the project continues to weather a barrage of criticism. Critics have highlighted a history of questions surrounding funding transparency and past regulatory hurdles dating back to its 2023 launch.
read more: Dubai regulator blocks sale and distribution of Islamic coins
The project has also come under intense scrutiny for potential links to illegal actors, a charge the HAQQ association strongly denies. Additionally, many purists decry ISLM’s marketing as an “ethics-first” asset, arguing that the inherent volatility and speculative nature of digital assets are fundamentally at odds with the ethos of Islamic finance.
There is no doubt that momentum is strong, but ISLM’s technical indicators suggest a period of high-stakes price discovery. The $0.06 peak pushed the Relative Strength Index (RSI-14) into the 90+ range, indicating extreme overshoot. Even with a small pullback, the asset is still in overbought territory, suggesting that the initial fear of missing out (FOMO) stage has reached saturation and a deeper mean reversion may be imminent.
Similarly, the Moving Average Convergence Divergence (MACD) histogram confirms strong bullish crossovers on daily and weekly time frames. However, the widening of the gap between the MACD line and the signal line reflects a parabolic “blow-off” structure, which usually precedes a phase of intense consolidation or a period of cooling. Trading volume peaked at $8 million, the highest level in nearly two years, confirming that the rally is being supported by capital inflows rather than thin liquidity.
In the short term, the technical outlook for ISLM remains clearly bullish, with analysts eyeing whether the $0.055 level can be converted into support and a possible test of the $0.086 resistance. However, given the controversial story and the extreme verticality of the move, investors face a high risk of a sharp correction or ‘liquidity grab’ as early buyers seek to realize profits.
Frequently asked questions ❓
- What caused the 470% jump in ISLM? The launch of Ethiq, HQQ’s Ethereum Layer 2, fueled the explosive rise.
- What was the reaction of markets around the world? ISLM’s cap jumped from $23 million to $120 million, regaining mid-cap status across global charts.
- Why is this project controversial? Critics cite past regulatory hurdles and concerns about funding transparency, despite the fatwa’s support.
- What is the short-term outlook for traders? Analysts are warning of overbought signals and the possibility of a sharp correction after the rally.
