Why did the price of XTZ fall?

Tezos (XTZ) dropped 5.64% in the last 24 hours, underperforming the overall crypto market, which fell by 1.72%. This decline was driven by technical setbacks, mixed reactions to recent upgrades, and weakness across the altcoin sector.

1. Technical Breakdown – Price fell below important support levels.
2. Seoul Upgrade Speculation – The testnet launch didn’t generate positive momentum.
3. Market Sentiment – Investors moved money out of altcoins as Bitcoin gained dominance.

Deep Dive

1. Technical Breakdown (Negative Impact)

Overview: The price of XTZ dropped below its 7-day and 30-day simple moving averages (around $0.74), with indicators showing growing selling pressure. The Relative Strength Index (RSI) is at 38.54, signaling bearish momentum, and the MACD indicator confirms this trend.

What this means: Falling below these key averages triggered automatic sell orders and algorithm-driven selling. Now, the price is testing a support level at $0.677, based on past price movements. If this level breaks, the next support to watch is around $0.668.

What to watch: If the price closes below $0.677 for the day, it could fall further to about $0.63.

2. Seoul Protocol Upgrade Reaction (Mixed Impact)

Overview: The Seoul upgrade was launched on test networks this week, aiming to improve Tezos’ scalability. However, developers described the rollout as mainly procedural, without immediate benefits for token holders.

What this means: While upgrades are generally positive for the long term, the lack of short-term rewards or changes to staking incentives led many investors to sell after the announcement. Social media mentions of Tezos being bullish dropped by 12% following the news (Tezos Commons).

3. Altcoin Sector Weakness (Negative Impact)

Overview: The overall altcoin market weakened, with the Altcoin Season Index dropping 11.69% this week. Meanwhile, Bitcoin’s market dominance increased by 0.48% to 58.2%. Trading volume for XTZ also declined by 4.12% to $21.6 million, indicating less market activity.

What this means: Tezos’ price movement reflects a broader trend where investors are pulling back from mid-sized altcoins amid growing uncertainty in the market.

Conclusion

The recent drop in XTZ price is mainly due to technical factors and a cautious market mood, despite progress on the Seoul upgrade. The $0.67–$0.68 range is a key support zone, but regaining $0.70 is important to improve investor confidence.

Key watch: Will Etherlink’s Total Value Locked (TVL), currently at $45 million, bounce back after the Seoul testnet? A fall below $40 million could indicate deeper doubts from institutional investors.

What could affect the price of XTZ?

Tezos is currently balancing between promising technical improvements and challenges in the market.

1. Etherlink Layer 2 Growth – Total Value Locked (TVL) jumped 6,200% in Q1 2025; if this continues, it could increase the usefulness of Tezos (XTZ) and be positive for its price.
2. Seoul Upgrade – Scheduled for testing in September 2025, this update might bring more developers back to the platform, but results are uncertain.
3. Competition from Python-Based Blockchains – Google’s GCUL blockchain is targeting the same institutional decentralized finance (DeFi) space as Tezos, which could be a challenge.

Deep Dive

1. Etherlink’s DeFi Momentum (Positive Outlook)

What’s happening: Etherlink, a Layer 2 solution compatible with Ethereum’s technology, has seen its TVL soar to $47.7 million by August 2025. This growth followed partnerships with Curve Finance and Oku, plus a $3 million rewards program called Apple Farm that boosted transactions by 189% monthly.
Why it matters: More activity on Etherlink means higher demand for XTZ tokens because users need to stake XTZ to secure the network and share in transaction fees. Etherlink now accounts for about 25% of all activity on the Tezos network, which could help support XTZ’s price despite recent dips (Messari).

2. Seoul Upgrade & Developer Interest (Mixed Outlook)

What’s happening: The upcoming Seoul upgrade, currently on testnet, introduces faster staking cycles and better Layer 2 scalability through Data Availability Layers. Despite efforts to support popular programming languages like JavaScript and Python, developer activity hasn’t yet returned to 2024 levels.
Why it matters: If the upgrade works well, it could attract more developers building decentralized apps (dApps) on Tezos. However, Google’s GCUL blockchain, which focuses on Python and targets banks, may pull some projects away. Tezos will need strong success stories in areas like gaming (e.g., Sugar Match) or real-world asset tokenization to stay competitive.

3. Market Risks & Large Investor Behavior (Negative Outlook)

What’s happening: XTZ’s price rose 26% over 90 days, outperforming Bitcoin’s 5% drop, but large investors (whales) sold $4.5 million worth of XTZ in July 2025 near the $1.15 resistance level. At the same time, delays in crypto regulation due to leadership gaps at the Commodity Futures Trading Commission (CFTC) are creating uncertainty.
Why it matters: High trading volume relative to market size means XTZ’s price is sensitive to changes in investor sentiment. If the price falls below key support at $0.68, it could trigger a chain reaction of sell-offs (CoinMarketCap).

Conclusion

Tezos’ future price depends largely on whether Etherlink can continue to grow and fend off competition from Python-focused blockchains like GCUL. While technical upgrades like Seoul set the stage for long-term success, ongoing weakness in Bitcoin’s market dominance and unclear regulations suggest investors should proceed carefully. The big question is whether the Seoul upgrade can deliver improvements that match or exceed Etherlink’s impressive 189% transaction growth in Q1 2025 to spark renewed optimism.

What are people saying about XTZ?

Tezos (XTZ) is gaining attention thanks to new developments in decentralized finance (DeFi) and some viral meme buzz. Here’s what’s trending right now:

1. Etherlink’s $11 million boost from institutional investors
2. Traders targeting $1.40 price after key moving average breakout
3. “Jeff Tezos” memes sparking excitement among everyday investors

Deep Dive

1. Layer 2 Adoption on the Rise

The Tezos team recently highlighted strong growth in Etherlink, a Layer 2 solution that helps scale the network. According to their update, the total value locked (TVL) in Etherlink jumped an impressive 6,200% quarter-over-quarter. This growth is important because it attracts larger, institutional investors to Tezos’ DeFi ecosystem, which can lead to more stability and long-term growth.
See the original post by @tezos

2. $11 Million Institutional Deal Changes the Game

An anonymous analyst shared that Midas, a platform offering tokenized yield products, saw $417,000 in net inflows within 24 hours. This $11 million deal signals growing interest from institutional investors in Tezos’ DeFi space. However, for this momentum to last, Midas needs to reach $100 million in total value locked by the third quarter.
Read the original post by @MacroInsights

3. Meme Culture Meets Market Moves

A popular crypto commentator noted that the recent 76% price jump over 2.5 days, pushing Tezos to $1.13, is more than just hype—it’s a real breakout past the $0.90 resistance level. However, the Relative Strength Index (RSI) hitting 91 suggests the coin might be overbought, meaning a price correction could be coming soon.
Check out the original post by @BRONDOR

Conclusion

Overall, the outlook for Tezos (XTZ) is positive, driven by Etherlink’s rapid growth and strong technical signals. That said, the coin’s 112% price surge in July has some investors cautious about a possible pullback. Keep an eye on the $1.04 Fibonacci level—if Tezos holds above this, it could confirm the ongoing Layer 2 growth story. If it falls below, some profit-taking might be ahead.
For more details, see the analysis on AMBCrypto.

What is the latest news about XTZ?

Tezos is making important technology improvements and facing some market doubts, while its gaming scene is starting to grow.

1. Seoul Upgrade Testing (September 9, 2025) – A major update is being tested to make the network faster and more scalable.
2. Sugar Match Game Launch (August 26, 2025) – A new Web3 puzzle game inspired by Candy Crush launches on Tezos’ Layer 2 network.
3. Co-Founder’s Bitcoin Criticism (August 26, 2025) – Arthur Breitman shares concerns about Bitcoin’s weaknesses during crises.

In-Depth Look

1. Seoul Upgrade Testing (September 9, 2025)

What’s happening:
Tezos is testing the Seoul upgrade on its test networks, Shadownet and Ghostnet. This update focuses on improving Layer 2 scalability by optimizing something called the Data Availability Layer (DAL). The goal is to speed up transaction times and make the network more reliable for decentralized apps.

Why it matters:
If successful, this upgrade could attract developers who want faster and cheaper solutions, which is good news for Tezos (XTZ). But if it doesn’t meet expectations, it could raise concerns about Tezos falling behind competitors like Ethereum or Solana. (Indodax)

2. Sugar Match Game Launch (August 26, 2025)

What’s happening:
Sugar Match is a new Web3 puzzle game available on iOS and Android, running on Tezos’ Etherlink Layer 2 network. Players can earn CNDY tokens by competing in player-vs-player battles and tournaments. The game aims to reach over 1 million downloads within 6 to 12 months.

Why it matters:
This play-to-earn model could attract everyday users and highlight Etherlink’s very low transaction fees (just $0.001 per transaction). However, keeping players engaged after the initial excitement will be a key challenge, as many blockchain games struggle with this. (Yahoo Finance)

3. Co-Founder’s Bitcoin Criticism (August 26, 2025)

What’s happening:
Arthur Breitman, co-founder of Tezos, criticized Bitcoin by calling it “funny internet money” during times of crisis. He pointed to Bitcoin’s price drops during the 2020 COVID crash and a recent 15% decline linked to U.S. tariff policies. He also noted that Tezos (XTZ) has dropped from a top 10 cryptocurrency to #88 by market value.

Why it matters:
Breitman’s comments highlight risks in the crypto market but could also distract from Tezos’ own progress. His remarks about XTZ’s dependence on market sentiment show the importance of real-world use and adoption to improve its standing. (Cointelegraph)

Conclusion

Tezos is making technical progress with the Seoul upgrade and new gaming projects like Sugar Match, but it still faces skepticism from the market. Despite ecosystem growth, XTZ’s price has dropped 25% this year, showing challenges in gaining strong user adoption and positive sentiment. The big question is whether the Seoul upgrade’s improvements will lead to lasting activity and growth on the network.

What is expected in the development of XTZ?

Tezos is making important updates with these key milestones:

1. Seoul Protocol Upgrade (September 2025) – Final testing of new staking and governance features.
2. Tezos X: Tezlink Integration (Q4 2025) – Connecting Tezos Layer 1 with Etherlink’s decentralized finance (DeFi) platform.
3. Mainstream Language Support (2026) – Adding compatibility with popular programming languages like JavaScript and Python.

Deep Dive

1. Seoul Protocol Upgrade (September 2025)

Overview:
The Seoul upgrade is currently being tested on Tezos’ test networks Ghostnet and Shadownet. It introduces more flexible staking cycles—allowing participants to stake for just one day instead of fixed longer periods—and enforces stricter penalties for validators who don’t stay active. These changes aim to make the network more secure and reliable.

What this means:
This is positive for Tezos (XTZ) because shorter staking periods could encourage more people to participate, boosting network security. However, tougher penalties might discourage smaller validators, potentially giving more control to larger players.

2. Tezos X: Tezlink Integration (Q4 2025)

Overview:
Tezlink is part of the Tezos X initiative, allowing developers to build directly on Tezos Layer 1 using its native programming languages (Michelson, SmartPy). It also connects Tezos with Etherlink’s Layer 2 platform, which is compatible with Ethereum’s technology. This integration combines Tezos’ strong security with Ethereum’s large liquidity pool (Tezos X keynote).

What this means:
This is positive for XTZ because it could attract Ethereum developers and investors to the Tezos ecosystem. However, there are risks from competing Layer 2 solutions and how widely Etherlink is adopted.

3. Mainstream Language Support (2026)

Overview:
By 2026, Tezos plans to support popular programming languages like JavaScript, TypeScript, and Python for smart contract development. This builds on the Rio upgrade’s focus on making the platform more modular and easier to work with (Tezos 2.0 docs).

What this means:
This is positive for XTZ because making development easier could lead to more decentralized apps (dApps) being built on Tezos. The success depends on how many developers adopt these new tools and how fast other blockchains innovate.

Conclusion

Tezos is focusing on improving scalability (through Etherlink), making development more accessible (with new language support), and refining governance (via the Seoul upgrade). These efforts aim to strengthen Tezos’ role in decentralized finance (DeFi) and real-world asset tokenization. While there are technical challenges ahead, these updates align with the broader crypto trend toward modular, developer-friendly blockchains. The key question is: how quickly can Tezos attract Ethereum-based projects to its Layer 2?

What updates are there in the XTZ code base?

Tezos (XTZ) is making important updates to improve how its blockchain scales, how easy it is for developers to build on it, and how strong and reliable the network is.

1. Rio Upgrade (May 1, 2025) – Added more flexible staking options and improvements to Layer 2 scaling.
2. Tezos X Roadmap (August 1, 2025) – Introduced a new modular blockchain design to combine Layer 1 and Layer 2 features.
3. Etherlink Integration (June 16, 2025) – Expanded Layer 2 with Ethereum-compatible tools, including Uniswap v3 features.

Deep Dive

1. Rio Protocol Upgrade (May 1, 2025)

What happened: At block #8,767,488, Tezos launched the Rio upgrade, which brought dynamic staking cycles and rewards for nodes helping with data availability. This helps speed up Layer 2 transactions.

Key improvements:

• 1-day staking cycles: Users can now change their staking choices daily instead of waiting for longer fixed periods.
• Stricter penalties for downtime: Validators (called bakers) face tougher consequences if they go offline, helping keep the network running smoothly.
• Rewards for Data Availability Layer (DAL): Nodes that help confirm data on Layer 2 get incentives, supporting Etherlink’s growth.

Why it matters: These changes make the network more reliable and faster, benefiting users and validators alike. Layer 2 transactions become quicker without compromising the security of the main Tezos blockchain. (Source)

2. Tezos X Roadmap Update (August 1, 2025)

What happened: Arthur Breitman, Tezos’ co-founder, shared updates on Tezos X, a major upgrade aiming to combine Layer 1 and Layer 2 into a single, easy-to-use platform for developers.

Key features:

• Interoperable rollups: Different Layer 2 solutions can work together securely using Tezos Layer 1’s protection.
• JavaScript and Python SDKs: Tools designed to attract developers familiar with popular programming languages.
• “Tezlink” bridge: Allows sharing liquidity across different rollups, making it easier to move assets.

Why it matters: This upgrade makes it simpler to build apps that work across multiple blockchains, which is promising for the future. However, its success depends on how many developers and users adopt these new tools. (Source)

3. Etherlink’s Uniswap v3 Integration (June 16, 2025)

What happened: The Oku platform launched on Etherlink, bringing Uniswap v3’s decentralized trading features to Tezos’ Ethereum-compatible Layer 2.

Key features:

• Limit orders and analytics: Users can trade with advanced tools without giving up control of their funds.
• Very low fees ($0.001) and fast transaction finality: Trades settle in less than a second.
• Cross-chain bridging: Supports transfers between Tezos and over 34 other blockchain networks.

Why it matters: This integration boosts decentralized finance (DeFi) activity on Tezos by providing deep liquidity and efficient trading. Still, Etherlink’s total value locked ($47.7 million as of August 2025) is smaller compared to bigger Layer 2 networks. (Source)

Conclusion

Tezos is focusing on making its blockchain faster and more scalable (Rio), easier for developers to use (Tezos X), and richer in DeFi options (Etherlink). These upgrades tackle key technical challenges, but their real impact depends on how widely they are adopted in areas like gaming, real-world assets, and NFTs. Tezos’ modular approach could help it stand out and compete with Ethereum’s dominance in the blockchain space.