The proliferation of Internet of Things (IoT) devices operating in swarm-like formations—from autonomous device fleets to federated service networks—demands a computing continuum that spans edge nodes, fog gateways, and cloud back-ends. Service meshes such as Istio provide transparent traffic management, observability, and policy enforcement for the microservice fabrics that underpin these continuums, yet their scalability behaviour under diverse coordination patterns and increasing load intensity remains poorly characterised. This paper introduces a two-axis taxonomy for benchmarking service-mesh scalability in IoT-to-cloud microservice continuums: Axis A captures four scaling tiers (Baseline, Moderate, High, Extreme) derived from offered load and concurrency, while Axis B is measured by the coordination-amplification factor , the number of service-to-service calls that one request triggers, and groups the scenarios into federated patterns, in which services call only distinct downstream services, and peer-to-peer patterns, in which services also call peer instances of themselves. We instantiate the taxonomy across six representative IoT scenarios, each exercised through multi-phase Fortio load campaigns over an Istio-meshed Kubernetes cluster. Analysing 51 benchmark runs, we report percentile latency distributions (P50, P90, P99), load fidelity, and throughput–tail coupling. Because every scenario is driven with fixed-size payloads, per-request application processing is held constant, which lets us separate the effect of coordination structure from that of application weight. At matched application weight and offered load, peer-to-peer coordination adds only a modest tail premium over federated rollout (a factor of ≈1.2–1.8 at 100–200 RPS); the severe effects—up to an order-of-magnitude P99 growth from a scenario’s own baseline to saturation, and achieved throughput collapsing to roughly half the requested rate—emerge specifically for heavy-compute peer-exchange workloads driven toward saturation. This interaction of load, coordination structure, and application weight is what the two-axis grid is designed to expose, and negligible-compute acknowledgement endpoints additionally provide a direct per-hop mesh-overhead measurement. We deliberately scope the study to the cloud-side segment of the continuum—the layer on which the service mesh runs—and within it to the single-node data plane, where mesh overhead can be measured in isolation from cross-node network variability; device and edge tiers enter only as offered load, and no claim is made about inter-tier transport. The A×B grid exposes otherwise hidden interaction effects between coordination topology and scale, providing actionable design guidance for service-mesh capacity planning and auto-scaling in IoT microservice deployments.