Why did the price of XTZ fall?
Tezos (XTZ) dropped 0.9% in the last 24 hours, underperforming the overall crypto market, which fell 0.24%. The main reasons are:
- Technical Correction – The price hit resistance levels and pulled back after recent gains.
- Shift to Bitcoin – Investors moved money into Bitcoin as its market share increased.
- Lower Trading Volume – XTZ’s trading volume fell by 21%, reducing buying momentum.
Detailed Analysis
1. Technical Resistance (Negative Impact)
Summary:
XTZ struggled to break through the $0.76 to $0.78 price range, which matches its 7-day moving average around $0.77. Indicators like the RSI (Relative Strength Index) near 48–49 and MACD (Moving Average Convergence Divergence) slightly negative suggest weak momentum, preventing a strong price breakout.
What this means:
After a strong 47% gain over the past 90 days, traders likely took profits, especially since trading activity is relatively low (turnover ratio of 1.8%). The price is now testing support near $0.75. If it falls below this, it could retest $0.72.
What to watch:
If XTZ closes above the 30-day moving average at about $0.76, it may indicate the price is stabilizing.
2. Shift of Funds from Altcoins to Bitcoin (Mixed Impact)
Summary:
Bitcoin’s dominance in the crypto market rose to 57.08%, up 0.34% in 24 hours, while the Altcoin Season Index dropped 5% to 74. XTZ’s trading volume also fell to $14.4 million, down 20.7%.
What this means:
Investors are favoring Bitcoin amid a neutral market mood (Fear & Greed Index at 48/100). XTZ’s price movement is slightly negatively correlated with Ethereum (-0.9% over the week), and slower growth in decentralized finance (DeFi) on Etherlink’s Layer 2 ($47.7 million total value locked) has reduced buying interest.
Conclusion
The recent dip in Tezos (XTZ) reflects short-term profit-taking and cautious sentiment across the crypto sector, despite solid fundamentals like Etherlink’s DeFi features. The key question is whether XTZ can hold the $0.75 support level as Bitcoin’s market dominance continues to fluctuate.
What could affect the price of XTZ?
Tezos balances protocol upgrades with the ups and downs of altcoin markets—here are the main factors to watch.
- Etherlink Layer 2 Growth – $47.7 million in total value locked (TVL) and integration with Curve Finance boost decentralized finance (DeFi) use cases.
- Real-World Asset (RWA) Tokenization – Partnerships with Uranium.io and Midas aim to attract institutional investors.
- Technical Trends – The MACD indicator shows bullish signs, but the RSI is neutral at 49, suggesting price consolidation.
Deep Dive
1. Etherlink Ecosystem Growth (Positive Outlook)
Overview: Tezos’ Etherlink, a Layer 2 solution compatible with Ethereum’s virtual machine (EVM), reached $47.7 million in TVL as of August 2025. This growth was supported by a $3 million incentive program and new integrations with Curve Finance and Uniswap v3 through the Oku platform. Etherlink now handles about 25% of all activity on the Tezos network.
What this means: The growing DeFi activity on Etherlink could attract Ethereum developers looking for lower transaction fees—around $0.001 per transaction—and opportunities for cross-chain liquidity. If TVL continues to grow beyond $50 million, Etherlink could establish itself as a strong Layer 2 competitor.
2. Real-World Asset Strategy (Mixed Outlook)
Overview: Arthur Breitman, co-founder of Tezos, is leading efforts to tokenize uranium through uranium.io. Meanwhile, Midas has launched regulated yield products like mTBILL and mBASIS, which currently hold $11 million in TVL on Etherlink.
What this means: If tokenization of real-world assets gains traction, Tezos could become a preferred blockchain for compliance-focused institutional investors. However, competition from other blockchains like Polygon and Chainlink is strong, and regulatory approval for tokenized uranium remains uncertain.
3. Technical Positioning (Neutral)
Overview: Tezos (XTZ) is trading at $0.754, down nearly 16% from the previous quarter, and just below its 200-day exponential moving average (EMA) of $0.755. The MACD indicator turned positive in August, signaling potential upward momentum, but the Relative Strength Index (RSI) at 49 indicates weak momentum and possible price consolidation.
What this means: If XTZ can break and hold above the 200-day EMA, it could aim for a price target of $0.833, based on Fibonacci retracement levels. On the other hand, dropping below support at $0.693 could lead to retesting lows from June. Trading volume is down over 28% year-over-year, suggesting investors are waiting for clearer market signals.
Conclusion
Tezos’ price outlook depends heavily on Etherlink’s ability to turn incentives into sustained DeFi activity and on progress in real-world asset tokenization. While the uranium tokenization initiative is ambitious, regulatory challenges could offset some of the positive momentum from Layer 2 developments. Watch for Etherlink’s TVL to surpass $100 million before the incentive program ends in October, and keep an eye on weekly active addresses and adoption of stXTZ liquid staking as indicators of growing confidence.
What are people saying about XTZ?
The buzz around Tezos (XTZ) is a mix of excitement and careful optimism. Here’s what’s making waves:
- Etherlink’s DeFi growth is attracting big investors 🏦
- Technical indicators show a strong "bullish" signal after a 7-month decline 📈
- Some enthusiasts are confident Tezos will hit "$1.40 or bust" 🚀
Deep Dive
1. @tezos: Etherlink Layer 2 adoption speeds up
"Our partnership with Midas brought in $11 million in total value locked (TVL) for tokenized yield products – this is how institutional DeFi should work."
– @tezos (1.2M followers · 2.8M impressions · 2025-07-20 03:07 UTC)
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What this means: This is good news for XTZ. Etherlink’s TVL grew 8% last week to $45.4 million, showing that Tezos’ focus on compliant real-world asset (RWA) strategies is paying off.
2. @BRONDOR: "Altseason printing machine"
"+42% in 24 hours, clear path to $1.40 if $1.10 holds. Tezos broke resistance like it was nothing."
– @BRONDOR (32K followers · 189K impressions · 2025-07-20 09:34 UTC)
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What this means: Traders are optimistic because XTZ broke through key price levels. However, the Relative Strength Index (RSI) hit 91 on July 19, which suggests the price might be overextended and due for a pullback.
3. @johnmorganFL: Warnings of a pullback
"XTZ bulls reclaimed $0.70, but RSI at 84 indicates overbought conditions. Spot CVD divergence points to speculative excess."
– @johnmorganFL (86K followers · 412K impressions · 2025-07-20 06:07 UTC)
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What this means: Some experts caution that the recent rally, driven by derivatives trading, might not last. The $0.717 price level is a key support to watch.
Conclusion
The overall outlook for Tezos (XTZ) is positive but cautious. Etherlink’s growing adoption and the alignment of key moving averages (20, 50, 100, and 200-day EMAs) suggest the market structure is improving. However, overbought signals and a 343% jump in open interest mean investors should be careful. Keep an eye on the $1.04 Fibonacci extension level—closing above this on a weekly basis could confirm a mid-term uptrend, while failing to hold it might lead to a drop back to $0.85. The real test will be whether Etherlink’s TVL can reach $100 million by the third quarter to keep institutional interest strong.
What is the latest news about XTZ?
Tezos is gaining momentum in decentralized finance (DeFi) with new liquid staking options and connections to Ethereum, while experts see the potential for its value to grow fivefold. Here are the latest highlights:
- Etherlink Launches Liquid Staking (August 13, 2025) – stXTZ lets users earn rewards while keeping their Tezos tokens flexible for DeFi use.
- Curve Finance Launches on Etherlink (August 7, 2025) – Offers low-cost stablecoin trading on Tezos’ Layer 2 network.
- Analysts Predict 5x Growth (August 21, 2025) – XTZ is named a top altcoin pick for 2025/26.
Deep Dive
1. Etherlink Launches Liquid Staking (August 13, 2025)
What happened:
Etherlink, a Layer 2 blockchain built on Tezos, introduced stXTZ through Stacy.fi. This lets users stake their Tezos tokens (XTZ) to help secure the network while still being able to use those tokens in DeFi activities. The Youves DAO manages the protocol and gives 90% of staking rewards back to users.
Why it matters:
This is a positive development for Tezos because it solves a common problem with staking—users usually have to lock up their tokens and can’t use them elsewhere. Now, with stXTZ, they can earn rewards and still participate in DeFi. Plus, integration with Chainlink oracles ensures accurate pricing for stXTZ applications.
(Source: Cryptopotato)
2. Curve Finance Deploys on Etherlink (August 7, 2025)
What happened:
Curve Finance, a popular platform for trading stablecoins with very low fees, launched on Etherlink as part of a $3 million incentive program called “Apple Farm Season 2.” This gives Tezos users access to Curve’s large pools of liquidity and fees under 0.1%.
Why it matters:
This move improves Tezos’ connection to Ethereum’s DeFi ecosystem, which is a good sign for its growth. While the incentives helped Etherlink’s total locked value (TVL) reach $47.7 million, it remains to be seen if this level can be maintained once rewards end.
(Source: Crypto.news)
3. Analysts Flag 5x Growth Potential (August 21, 2025)
What happened:
Several reports have identified XTZ as a strong candidate for a fivefold increase in value during the 2025/26 cycle. Reasons include its compatibility with Ethereum’s virtual machine (EVM), institutional projects like uranium.io, and its current undervalued status.
Why it matters:
While this outlook is speculative, it shows growing confidence in Tezos’ fundamentals. The token has seen a 52% rally over the past 90 days, compared to a 16% decline over the previous 60 days, indicating volatile but positive momentum. Continued growth in the ecosystem will be key to reaching these targets.
(Source: XT.com)
Conclusion
Tezos is strengthening its position in DeFi through Etherlink’s liquid staking and Ethereum-compatible tools, while analysts are optimistic about its upside potential. Since XTZ is still 84% below its 2021 peak, its focus on real-world assets and Layer 2 growth could turn technical promise into lasting demand. Keep an eye on Etherlink’s TVL and stXTZ adoption for signs of progress.
What is expected in the development of XTZ?
Tezos is moving forward with several key updates:
- Tezlink Integration (Q4 2025) – Connects Tezos Layer 1 tools with Etherlink’s DeFi platform to support scalable decentralized apps (dApps).
- Quebec Protocol Upgrade (Expected Q1 2026) – Speeds up transaction finality and adjusts security rules for validators.
- Tokenized Uranium Initiative (Late 2025) – Introduces fractional ownership of uranium through the uranium.io platform.
- XTZ → TEZ Rebrand Discussion (No set date) – Community talks about changing the coin’s ticker symbol to simplify branding.
In-Depth Look
1. Tezlink Integration (Q4 2025)
What it is: Tezlink is part of Tezos’ plan to let developers build dApps using Tezos’ native programming languages (Michelson, SmartPy) while tapping into Etherlink’s liquidity and Ethereum Virtual Machine (EVM) compatibility. This aims to combine Tezos’ strong Layer 1 features with the scalability benefits of Layer 2 solutions.
Why it matters: This could be a big win for Tezos (XTZ) by attracting Ethereum developers who want lower transaction fees (around $0.001 per transaction) and the ability to work across different blockchains. However, success depends on Etherlink’s total value locked (TVL), which grew dramatically by 6,200% in early 2025 (source).
2. Quebec Protocol Upgrade (Expected Q1 2026)
What it is: Building on the Rio upgrade from May 2025, Quebec will reduce the time it takes for transactions to be finalized from 15-30 seconds down to just 1 second. It will also introduce stricter penalties for validators who don’t participate properly.
Why it matters: This upgrade should improve the user experience for applications like DeFi and gaming by making transactions faster. However, tougher penalties might temporarily discourage some validators. The upgrade needs approval from at least 75% of stakeholders through voting.
3. Tokenized Uranium Initiative (Late 2025)
What it is: uranium.io, created with institutional partners, will allow people to own fractions of physical uranium reserves. Tezos’ on-chain governance will oversee compliance and audits to ensure everything is above board.
Why it matters: This is a speculative but potentially exciting development. Uranium is a commodity market worth over $50 billion, and tokenizing it could make Tezos a leader in real-world asset (RWA) blockchain projects. However, there are risks like regulatory challenges and uranium price swings (source).
4. XTZ → TEZ Rebrand Discussion (No set date)
What it is: Some community members want to change the coin’s ticker from XTZ to TEZ to avoid confusion with other coins like XRP and XMR, and to match dApps like Quipuswap that already use “TEZ.”
Why it matters: This change could help with search engine visibility and make it easier for new users to recognize the coin. However, it requires updates from exchanges and wallets, which is a complex process with no guaranteed benefits.
Conclusion
Tezos is focusing on improving scalability (with Etherlink), speeding up transaction finality (Quebec upgrade), and expanding into real-world assets (uranium.io). The Ethereum-compatible Tezlink integration could drive growth in decentralized finance, while the tokenized uranium project will test Tezos’ ability to handle regulated assets. Whether uranium tokenization becomes a major success or stays a niche experiment remains to be seen.
What updates are there in the XTZ code base?
Tezos is making important updates to improve how its network scales, how easy it is for developers to build on it, and how it supports real-world assets (RWA).
- Rio Protocol Upgrade (May 1, 2025) – Introduced faster staking cycles and improvements to Layer 2 scalability.
- Tezlink Integration (July 29, 2025) – Added a bridge compatible with Ethereum’s technology to connect DeFi liquidity across blockchains.
- Jstz JavaScript Support (August 6, 2025) – Enabled developers to write smart contracts using JavaScript and TypeScript, making development simpler.
Deep Dive
1. Rio Protocol Upgrade (May 1, 2025)
Overview: Activated at block #8,767,488, this upgrade shortened staking cycles from about two weeks to just one day, allowing validators to join or leave more quickly. It also improved Layer 2 scalability through a new Data Availability Layer (DAL).
- Key changes:
- Faster, 1-day staking cycles for quicker validator adjustments.
- Updated rewards system that gives extra incentives to validators participating in the DAL, helping increase transaction capacity.
- Stricter penalties for inactive validators to keep the network reliable.
Why it matters: These changes make the Tezos network more efficient and attractive to both app developers and institutional validators, which could lead to more people staking Tezos (XTZ). (Source)
2. Tezlink Integration (July 29, 2025)
Overview: As part of Tezos’ expansion plan, Tezlink connects the Tezos main network (Layer 1) with Etherlink’s Ethereum-compatible Layer 2 network.
- Technical details:
- Developers can write smart contracts in Tezos’ native languages (Michelson, SmartPy, jsLIGO) on Layer 1 and access Ethereum-based DeFi applications through Etherlink.
- Uses Tezos Smart Rollups technology to enable fast, cross-chain transactions with near-instant finality.
Why it matters: This integration helps bring liquidity from Ethereum-related projects to Tezos, improving scalability for applications like high-frequency trading and NFTs. Its success depends on how widely it’s adopted. (Source)
3. Jstz JavaScript Support (August 6, 2025)
Overview: Jstz allows developers to write smart contracts using JavaScript or TypeScript, popular programming languages outside the blockchain space.
- Implementation:
- Native support for JavaScript/TypeScript smart contracts, removing the need to learn Tezos’ specialized language, Michelson.
- Integrated with Tezos’ security tools to ensure contracts remain safe and reliable.
Why it matters: This lowers the barrier for traditional web developers to build on Tezos, potentially speeding up the growth of decentralized applications (dApps). (Source)
Conclusion
Tezos is focusing on making its network more scalable and easier to develop on, targeting institutional decentralized finance (DeFi) and real-world asset applications. With Etherlink’s total value locked (TVL) growing over 6,000% this year and JavaScript now supported natively, these upgrades could spark renewed interest and activity among developers building on Tezos.