What could affect the price of XTZ?
Tezos is balancing its protocol upgrades with changes in the decentralized finance (DeFi) market.
- Etherlink Layer 2 Growth – With $47.7 million in total value locked (TVL) and integration with Curve Finance, DeFi activity on Tezos is picking up.
- Governance & Upgrades – The Rio upgrade revamped staking, and progress continues on the Tezos X roadmap.
- Altcoin Market Risks – Bitcoin’s strong market dominance (57.5%) limits the upside for altcoins like Tezos, despite positive technical signals.
Deep Dive
1. Etherlink’s DeFi Expansion (Positive Outlook)
Overview:
Etherlink, a Layer 2 solution on Tezos compatible with Ethereum’s system, reached an all-time high TVL of $47.7 million in August 2025. This growth is fueled by partnerships with Curve Finance and Midas, which offers tokenized yield products. The launch of liquid staking through stXTZ on August 13 allows users to earn 90% of staking rewards while still participating in DeFi activities.
What this means:
Increased DeFi activity can boost demand for Tezos’ native token, XTZ, especially as Etherlink connects Bitcoin (through $LBTC) and stablecoins to the Tezos ecosystem. However, competition from Ethereum’s Layer 2 networks like Base and Arbitrum could limit how much Tezos can grow in this space.
2. Protocol Upgrades & Governance (Mixed Outlook)
Overview:
The Rio upgrade, activated in May 2025, introduced faster 1-day staking cycles and stricter rules for validators. Meanwhile, Tezos X aims to improve scalability by using multiple “chains of rollups,” but this project is still in progress and faces challenges.
What this means:
If these upgrades succeed, they could make the Tezos network more efficient and attractive to developers. On the other hand, delays or disagreements within the community—such as debates over the token ticker (XTZ vs. TEZ)—could hurt confidence.
3. Market Sentiment & Altcoin Season (Neutral Outlook)
Overview:
The Altcoin Season Index, which measures how much money is moving into smaller cryptocurrencies, is at 70 as of September 2025—up 49% from the previous month. Despite this, Bitcoin’s dominance at 57.5% and $949 billion in derivatives trading indicate that investors remain cautious.
What this means:
XTZ’s recent 42% price increase over 90 days matches the broader altcoin trend. However, if Bitcoin’s price rises above $120,000, it could pull investment away from altcoins like Tezos.
Conclusion
The future price of XTZ depends on Etherlink’s success in attracting institutional DeFi users and the progress of Tezos X’s scalability plans. Watch the $0.785 Fibonacci support level closely—a sustained move above this could push the price toward $0.926, while a failure to hold it might lead to a drop to $0.717. Can Tezos’ move into Ethereum-compatible Layer 2 solutions outpace Ethereum’s own Layer 2 networks?
What are people saying about XTZ?
Tezos holders are experiencing a strong rally fueled by recent developments. Here’s what’s trending:
- Etherlink’s DeFi growth is attracting institutional investors
- Technical breakout sparks popular "Jeff Tezos" memes during altcoin season
- Traders are targeting $1.40 but caution about an overbought RSI
Deep Dive
1. @tezos: Etherlink Layer 2 DeFi adoption looks promising
"$11 million total value locked (TVL) added through Midas’ yield products marks the first institutional-grade DeFi on Tezos"
– @tezos (890K followers · 2.1M impressions · 2025-07-20 03:07 UTC)
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What this means: This is positive for Tezos (XTZ). Etherlink’s TVL growth, increasing 8% weekly to $45.43 million, shows that Tezos can handle real-world financial applications. This shift moves Tezos from being seen as just a speculative asset to one with practical uses.
2. @BRONDOR: Technical breakout sparks meme excitement
"+76% gain in 2.5 days – broke through resistance easily. Altcoin season is heating up"
– @BRONDOR (14K followers · 287K impressions · 2025-07-20 09:34 UTC)
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What this means: This is a mixed signal for XTZ. The price breaking a 7-month resistance line and a “golden cross” of moving averages (20/50/100/200-day) suggests strong momentum. However, the Relative Strength Index (RSI) at 91 indicates the asset is overbought, which often leads to price corrections.
3. @johnmorganFL: Warning signs of overheating
"XTZ bulls reclaimed $0.70, but RSI at 84 suggests a pullback is likely before testing $1.40"
– @johnmorganFL (62K followers · 910K impressions · 2025-07-20 06:07 UTC)
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What this means: This is a short-term bearish sign. Derivatives data shows a 343% increase in open interest, indicating high leverage. If support at $1.10 fails, it could trigger sharp sell-offs.
Conclusion
The outlook for Tezos (XTZ) is mixed. On one hand, Etherlink’s TVL growth points to strong fundamentals and real-world use cases. On the other hand, technical indicators show the price may be overextended. The recent +64% weekly price surge depends heavily on continued interest in altcoins. Keep an eye on the $1.10 support level—if it breaks, it could signal whether this rally is a lasting change or just another short-term altcoin pump.
What is the latest news about XTZ?
Tezos is gaining momentum in decentralized finance (DeFi) and improving its staking options, while also focusing on attracting institutional investors. Here’s a quick look at the latest developments:
- Bitvavo Flex/Fixed Staking Launch (September 1, 2025) – Tezos (XTZ) Flex staking now offers a 1.4% annual yield with no lock-up period.
- Etherlink DeFi Expansion (August 19, 2025) – Integration with Curve Finance for stablecoin swaps and a partnership with Hex Trust to securely manage tokenized uranium.
- Altcoin Growth Spotlight (August 21, 2025) – Analysts identify Tezos as a strong candidate for significant price growth in 2025 and 2026.
Deep Dive
1. Bitvavo Flex/Fixed Staking Launch (September 1, 2025)
Overview: Bitvavo updated its staking program by introducing two options: Flex staking, which allows users to earn rewards without locking their coins, and Fixed staking, which offers higher returns but requires locking assets. For Tezos, only Flex staking is available, offering a 1.4% annual percentage yield (APY). Fixed staking is not offered for Tezos at this time. This change comes after increased interest in flexible staking options following Etherlink’s launch of stXTZ, a liquid staking token.
What this means: This update is neutral for Tezos. It makes staking more accessible for casual users but may limit the amount of capital seeking higher yields compared to other coins like Cosmos (ATOM), which offers 12.4% APY on fixed staking. (Bitvavo)
2. Etherlink DeFi Expansion (August 19, 2025)
Overview: Etherlink, a layer-2 solution compatible with Ethereum’s virtual machine (EVM) on Tezos, has partnered with Curve Finance to enable stablecoin swaps. Additionally, it teamed up with Hex Trust to securely hold tokenized uranium (xU3O8), targeting institutional investors. The Curve integration is part of a $3 million rewards program called Apple Farm Season 2, designed to boost liquidity.
What this means: This is positive news for Tezos. The Curve partnership could bring Ethereum-based investors into the Tezos ecosystem, while the uranium custody project connects real-world assets to blockchain technology—a growing trend in 2025. (U.Today)
3. Altcoin Growth Spotlight (August 21, 2025)
Overview: Several market analysts have highlighted Tezos as a promising altcoin during the recent market rally. They point to its EVM compatibility upgrades and growing institutional DeFi adoption through Etherlink. Tezos saw a 42% price increase in July, helped by Midas’ $11 million in tokenized products locked in their platform.
What this means: While the outlook is optimistic, it remains speculative. Technical indicators like moving averages and relative strength index (RSI) suggest positive momentum, and investors are shifting toward mid-sized coins like Tezos. However, to maintain growth, Tezos needs to increase its layer-2 adoption. Currently, Etherlink’s total value locked (TVL) is $47.7 million, which is small compared to competitors like Arbitrum with $2.5 billion. (XT.com)
Conclusion
Tezos is making a strong push toward institutional DeFi through Etherlink’s partnerships and experiments with real-world assets like uranium. Meanwhile, staking improvements aim to keep retail investors engaged. With Tezos up 42% over the past 90 days but still 91% below its 2021 high, the key question is whether uranium tokenization and Curve’s liquidity can help push total value locked beyond $100 million before investors start taking profits.
What is expected in the development of XTZ?
Tezos’ roadmap is focused on improving scalability, integrating decentralized finance (DeFi), and innovating with real-world assets.
- Etherlink L2 Expansion (Q4 2025) – Aims to increase DeFi liquidity and enable better interaction between different blockchains.
- Tezlink Integration (Q4 2025) – Combines Tezos’ main network tools with Etherlink’s development environment.
- Tokenized Uranium Initiative (2026) – Plans to bring real-world assets like uranium into the blockchain space.
Deep Dive
1. Etherlink L2 Expansion (Q4 2025)
Overview
Etherlink is a Layer 2 solution compatible with Ethereum’s technology, built on Tezos. It’s designed to handle more transactions faster and attract decentralized apps (dApps) originally built for Ethereum. Recent upgrades, such as Bifröst in March 2025, allow assets to move between blockchains more easily. This led to a huge increase in total value locked (TVL), jumping 6,200% quarter-over-quarter to $18 million. A $3 million incentive program is encouraging more liquidity for projects like Superlend and IguanaDEX (Messari).
What this means
Positive: This improves DeFi options on Tezos and connects it with Ethereum’s liquidity.
Challenges: Competing with established Ethereum Layer 2 solutions like Arbitrum may slow adoption.
2. Tezlink Integration (Q4 2025)
Overview
Tezlink is a tool that lets developers use Tezos’ native programming languages (Michelson, SmartPy) while accessing Etherlink’s DeFi features. Announced at TezDev 2025, it aims to make it easier to build apps that work across both layers and attract developers from traditional web development backgrounds (Tezos).
What this means
Positive: Could speed up the creation of new dApps and reduce fragmentation in the Tezos ecosystem.
Neutral: Its success depends on how many developers choose it over Ethereum’s widely used tools.
3. Tokenized Uranium Initiative (2026)
Overview
Arthur Breitman, Tezos’ co-founder, is leading an effort to tokenize uranium through uranium.io. This project targets institutional investors interested in nuclear energy assets. Early partnerships plan to represent physical uranium reserves on the blockchain, using Tezos’ governance system that is friendly to regulations (CryptoSlate).
What this means
Positive: Positions Tezos (XTZ) as a leader in real-world asset tokenization with a unique use case.
Challenges: Regulatory issues and fluctuations in commodity markets could create risks.
Conclusion
Tezos is focusing on improving scalability with Etherlink, enhancing developer tools through Tezlink, and exploring niche real-world assets like uranium. These efforts could boost activity and attract institutional interest, but there are risks, especially in competing with Ethereum’s strong Layer 2 ecosystem.
Will Tezos’ push into real-world assets help balance its slower DeFi growth compared to competitors?
What updates are there in the XTZ code base?
Tezos (XTZ) recently improved its technology to make the network faster, more flexible for staking, and better connected with Layer 2 solutions.
- Rio Protocol Upgrade (May 1, 2025) – Introduced daily staking cycles and tools to boost Layer 2 scalability.
- Etherlink Fast Withdrawals (June 27, 2025) – Reduced withdrawal times on Layer 2 from 15 days to just 1 minute.
- Liquid Staking on Etherlink (August 13, 2025) – Launched stXTZ, allowing users to earn rewards and use their tokens in decentralized finance (DeFi) without locking them up.
Deep Dive
1. Rio Protocol Upgrade (May 1, 2025)
What happened: Activated at block 8,767,488, this upgrade shortened staking cycles from several days to just one day. It also introduced a new rewards system to encourage participation in the Data Availability Layer (DAL), which helps improve Layer 2 performance.
Bakers (Tezos validators) can now adjust their staking daily, making it easier to respond to market changes. The upgrade also enforces stricter penalties for inactive bakers to keep the network running smoothly. Integrating DAL helps Layer 2 solutions process data more efficiently.
Why it matters: Faster staking cycles mean users can be more flexible with their investments, and stricter rules help keep the network reliable. Better Layer 2 support could attract more decentralized apps (dApps) to Tezos.
(Source)
2. Etherlink Fast Withdrawals (June 27, 2025)
What happened: Etherlink introduced a new system that cuts withdrawal times from Layer 2 back to the main Tezos blockchain (Layer 1) from 15 days down to just 1 minute.
This is done through smart contracts that allow liquidity providers to front the withdrawal amounts quickly, then get reimbursed after a waiting period. This keeps the system decentralized while making it much faster for users to move funds.
Why it matters: While this doesn’t directly change the value of XTZ, it removes a major inconvenience compared to Ethereum’s Layer 2 solutions. Faster withdrawals could encourage more people to use Etherlink.
(Source)
3. Liquid Staking on Etherlink (August 13, 2025)
What happened: The launch of stXTZ on Etherlink lets users stake their XTZ tokens and still use them in DeFi applications.
Created by Stacy.fi and managed by Youves DAO, stXTZ holders receive 90% of staking rewards. A Chainlink oracle provides accurate price data to support DeFi activities.
Why it matters: This feature makes staking more attractive by unlocking liquidity, meaning users don’t have to lock up their tokens to earn rewards. It could increase participation in securing the Tezos network and grow Etherlink’s DeFi ecosystem.
(Source)
Conclusion
Tezos is focusing on making its network more scalable and efficient with upgrades like Rio and Etherlink, plus new staking options. As Layer 2 activity now generates more fees than Layer 1, the big question is whether Tezos can keep up this momentum and compete with Ethereum’s well-established ecosystem.
Why did the price of XTZ go up?
Tezos (XTZ) increased by 0.75% in the last 24 hours, continuing a broader upward trend of 6.5% over the past week. Here’s a quick look at the main reasons behind this movement:
- Etherlink Layer 2 Adoption – Improvements in decentralized finance (DeFi) and staking attracted more users.
- Technical Breakout – The price moved above important average levels and tested key resistance points.
- Altcoin Momentum – Investors shifted focus to mid-sized cryptocurrencies, boosting gains.
Deep Dive
1. Etherlink Layer 2 Growth (Positive Impact)
Overview: Tezos’ Layer 2 solution, Etherlink, which is compatible with Ethereum’s virtual machine, recently introduced stXTZ. This is a liquid staking option that lets users earn rewards while still being able to use their staked tokens in DeFi activities (CoinMarketCap). This approach improves on traditional staking by making capital more flexible, similar to how Lido Finance operates in Ethereum’s $45 billion liquid staking market.
What this means: Users can now stake XTZ and still use those tokens across both Tezos’ main network and Etherlink’s Layer 2. This makes the system more efficient and attractive to both stakers and DeFi users, which reduces the available supply and can support price growth.
What to watch: Etherlink’s Total Value Locked (TVL) is currently $47.7 million. If it grows beyond $50 million and stays there, it could indicate strong institutional interest.
2. Technical Momentum (Mixed Impact)
Overview: The price of XTZ moved above its 30-day simple moving average (SMA) of about $0.76 and tested a key Fibonacci resistance level near $0.76. The MACD indicator, which helps measure momentum, turned positive, suggesting the price may continue to recover.
What this means: Traders are responding to this breakout from a period of sideways price movement. However, the Relative Strength Index (RSI) is neutral at 51.6, meaning the coin is neither overbought nor oversold. Trading volume dropped by 16.5% to $39 million, showing some caution among participants.
Key level to watch: If the price closes above $0.785, it could aim for $0.833 as the next target.
3. Altcoin Sector Rotation (Positive Impact)
Overview: The Altcoin Season Index, which measures how much investors are favoring altcoins over Bitcoin, rose to 71, up 14.5% for the week. Tezos’ 90-day return of 45.6% outperformed Ethereum’s 7.8% and Bitcoin’s -2.2% over the past month.
What this means: Investors are looking for cryptocurrencies with practical uses. Tezos stands out because of its focus on real-world assets like tokenized uranium and its growing gaming infrastructure, making it an attractive option in the current market.
Conclusion
Tezos’ recent gains are driven by Etherlink’s DeFi innovations, solid technical signals, and increased interest in altcoins. While short-term indicators suggest cautious optimism, the price range between $0.76 and $0.78 will be important to watch to see if this trend continues or if it’s just a temporary bounce.
Key point to watch: Will Etherlink’s TVL exceed $50 million this week, confirming its important role in Tezos’ multi-chain strategy?