Why did the price of XTZ fall?
Tezos (XTZ) dropped 1.09% in the last 24 hours, falling to $0.664. This performance was weaker compared to the overall crypto market, which rose by 0.6% during the same time. Here are the main reasons behind this movement:
- Technical correction – Selling pressure increased after XTZ failed to stay above the $0.72 support level.
- Altcoin rotation – Investors moved money into Bitcoin, with Bitcoin’s market share rising slightly to 57.84%.
- Profit-taking after upgrade – Some investors sold off after the Seoul protocol upgrade, which had previously boosted network efficiency by 63 times.
Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview: XTZ’s price fell below its 7-day and 30-day moving averages ($0.694 and $0.732 respectively), signaling weakening momentum. The Relative Strength Index (RSI) is at 36.99, indicating more selling than buying. The MACD indicator also shows declining buying pressure.
What this means: Traders sold their holdings after the price couldn’t climb back above the important $0.72 level, which is a key point based on past price movements. Since September 22, the price has been making lower highs, showing less confidence among investors.
Key watch: If XTZ closes below $0.65 (its 200-day moving average), it could fall further to around $0.62.
2. Altcoin Sector Outflows (Mixed Impact)
Overview: Bitcoin’s dominance in the market increased to 57.84% as investors sought safer options during a period of market uncertainty (Fear & Greed Index at 34, indicating fear). Trading volume for XTZ dropped 21.2% to $15.3 million, showing less interest from traders.
What this means: Although Tezos’ Etherlink Layer 2 solution reached $60 million in total value locked (TVL) on September 11, recent shifts in decentralized finance (DeFi) favored Ethereum-based assets. The correlation between XTZ and Ethereum over the past 30 days decreased to 0.72, making XTZ less attractive as a high-risk, high-reward investment.
3. Post-Upgrade Profit-Taking (Neutral Impact)
Overview: The Seoul protocol upgrade on September 4 brought significant improvements, including a 63x increase in network efficiency and easier unstaking with one click. Despite this, XTZ’s price has dropped 11.5% since the upgrade.
What this means: Investors likely anticipated these improvements before the upgrade launched, so the market had already priced in the benefits. The lack of a big increase in TVL after the upgrade led some to sell their holdings, a common reaction known as “sell the news.”
Conclusion
The recent drop in XTZ’s price is mainly due to technical challenges and a cautious market environment, which overshadow the positive effects of the Seoul upgrade. While the network improvements make Tezos more appealing to institutional investors, short-term traders are focusing more on liquidity and quick gains.
Key watch: Will Etherlink’s TVL rise back above $60 million this week? This could confirm the upgrade’s positive impact on the network.
What could affect the price of XTZ?
Tezos is at a critical point with important technology updates and changing market conditions.
- Protocol Upgrades & DeFi Growth – The Seoul upgrade improves efficiency and makes Tezos more attractive to big investors.
- Etherlink Layer 2 Momentum – Growing total value locked (TVL) and the use of stXTZ tokens could increase demand.
- Market Sentiment Swings – Crypto markets driven by fear and shifting interest away from altcoins pose risks.
Deep Dive
1. Protocol Upgrades & Institutional Adoption (Positive Outlook)
Overview:
The Seoul upgrade, launched on September 19, 2025, introduced new features like multisignature wallets built into the protocol and cut network validation costs by 63 times. These changes address security needs important to large investors. Alongside this, Etherlink, Tezos’ Layer 2 solution, reached $60 million in total value locked (TVL), and liquid staking through stXTZ tokens is gaining traction (Tezos Agora). These developments position Tezos for real-world asset applications, such as managing tokenized uranium custody (Cryptobriefing).
What this means:
Better scalability and tools designed for institutions could attract more investment. In the past, major upgrades like the Rio update in May 2025 led to strong price gains, with weekly rallies of about 21% (CoinMarketCap).
2. Etherlink’s DeFi Expansion (Mixed Outlook)
Overview:
Etherlink is Tezos’ Ethereum-compatible Layer 2 network. It reached $60 million in TVL in September 2025, helped by integration with KuCoin exchange and incentives like the Apple Farm rewards program. However, it faces stiff competition from Ethereum’s own Layer 2 solutions and Solana, which benefits from ETF-driven interest.
What this means:
Etherlink’s growth, including a 272% increase in activity in the third quarter of 2024 (Messari), supports the use of Tezos tokens (XTZ). But since some growth depends on short-term farming rewards (like the $3 million Apple Farm program), there could be volatility if those incentives end.
3. Market Sentiment & Altcoin Pressures (Potential Risks)
Overview:
Crypto markets are currently in a “Fear” state, with a market sentiment index at 34 and Bitcoin dominating 57.8% of the market. Tezos’ price moves closely with Bitcoin (correlation of 0.82 over 30 days), making it vulnerable to Bitcoin’s ups and downs. Recent price spikes driven by large investors (whales), such as a 112% surge in July 2025, quickly lost momentum due to profit-taking (AMBCrypto).
What this means:
Tezos has dropped nearly 20% over the past 60 days, showing how sensitive altcoins can be. If the price falls below $0.65 (a key support level), it could trigger panic selling. Meanwhile, investment flowing into Ethereum and Solana ETFs might draw attention away from Tezos.
Conclusion
Tezos’ price outlook depends on how well Etherlink adoption grows amid broader market challenges. The Seoul upgrade and partnerships involving real-world assets provide a positive foundation, but failing to hold the $0.65 support level could lead to further losses. Keep an eye on the Altcoin Season Index (watching for a move from 66 to 87) and Etherlink’s TVL after September. The big question: Can Tezos use its upgrades to shake off its “ghost chain” reputation?
What are people saying about XTZ?
Tezos is showing strong growth in decentralized finance (DeFi), while traders are navigating some price ups and downs. Here’s the latest:
- Etherlink’s $11 million TVL increase is attracting institutional interest
- 64% price jump is sparking optimistic technical analysis
- Big investors (whales) are buying more, but some are also taking profits
Deep Dive
1. Etherlink’s DeFi growth is a positive sign for Tezos
Etherlink, a DeFi platform on Tezos, saw a 39% increase in activity, adding $11 million in total value locked (TVL) thanks to Midas’ tokenized yield products.
– Source: CoinMarketCap Community (July 20, 2025)
Why it matters: This shows that Tezos is gaining traction with institutional investors, which supports the platform’s technology and real-world use cases, especially in regulated asset tokenization.
2. Tezos price surged 76% in just 2.5 days
The price bounced from $0.90 to $1.13, with potential to reach $1.40 if it stays above $1.10. This signals a strong upward trend.
– Source: CoinMarketCap Community (July 20, 2025)
Why it matters: Technical traders see this as a sign that the long-term downtrend is reversing, supported by moving averages lining up for continued growth.
3. Big investors are buying but some are cashing out
On July 19, spot buying volume reached $72.2 million, showing strong demand. However, some investors sold off, pushing exchange net flows to an 8-month high.
– Source: AMBCrypto (July 21, 2025)
Why it matters: This mixed activity suggests the market is a bit stretched, with the Relative Strength Index (RSI) at 93 indicating potential overbuying. Watch if the $1.04 price level holds during any pullbacks.
Conclusion
The outlook for Tezos (XTZ) is cautiously optimistic. Etherlink’s growing DeFi presence and strong price momentum are positive signs, but overbought conditions mean some caution is needed. The recent break of a 7-month downtrend and aligned moving averages point to underlying strength. Keep an eye on Etherlink’s goal to reach $100 million TVL in Q3—continued institutional investment could confirm this breakout.
What is the latest news about XTZ?
Tezos is making progress on both technology and community fronts. Here are the key updates:
- Seoul Protocol Upgrade (September 19, 2025) – Enhanced security for institutions and a 63x boost in network efficiency are now live.
- Etherlink Reaches $60M TVL (September 11, 2025) – Integration with KuCoin and growth in decentralized finance (DeFi) are expanding the ecosystem.
- Berlin Digital Art Showcase (November 6–9, 2025) – More than 200 artists will present digital art minted on Tezos.
In-Depth Look
1. Seoul Protocol Upgrade (September 19, 2025)
What happened:
Tezos launched its 19th protocol upgrade, adding native multisignature wallets that improve security for institutional users. It also reduced the daily data needed for transaction validation from 900MB to just 14MB using a technology called BLS signatures. Plus, unstaking XTZ is now easier with a one-click withdrawal process, though there’s still a 4-day waiting period for security reasons.
Why it matters:
This upgrade is a big step for Tezos. Institutions need strong security features to participate, and the efficiency improvements lower costs for those running network nodes. Making unstaking simpler improves the user experience without risking the network’s safety.
(Cryptobriefing)
2. Etherlink Hits $60M TVL (September 11, 2025)
What happened:
Etherlink, a layer-2 solution compatible with Ethereum’s technology, reached $60 million in total value locked (TVL) after adding support for direct XTZ deposits and withdrawals on KuCoin exchange. This growth was helped by a $3 million rewards program called Apple Farm Season 2 and partnerships with DeFi projects like Curve Finance and Gearbox Protocol.
Why it matters:
Etherlink is helping connect Tezos’ main network liquidity with Ethereum’s large developer community, which could drive more activity and innovation. However, it’s important to watch if this growth continues once the rewards program ends in November.
(Finbold)
3. Berlin Digital Art Showcase (November 6–9, 2025)
What happened:
The "Art on Tezos 2025" event in Berlin will feature over 200 artists showcasing NFTs (digital art tokens) minted on Tezos. The exhibit includes AI-generated art and collaborations with creators linked to the Museum of Modern Art (MoMA).
Why it matters:
While the overall NFT market has cooled down, Tezos remains attractive to digital artists because of its low minting fees and energy-efficient blockchain. Events like this help strengthen Tezos’ position in the sustainable digital art space.
(Crypto.News)
Conclusion
Tezos is advancing on two fronts: improving institutional features with the Seoul upgrade and growing its community through DeFi and digital art initiatives like Etherlink and the Berlin showcase. Although XTZ has dropped nearly 12% this week amid a tough market for altcoins, its real-world uses in finance, art, and layer-2 solutions could help it weather broader market challenges. Keep an eye on whether Etherlink maintains its growth after the Apple Farm rewards end.
What is expected in the development of XTZ?
Tezos is making important progress with these key updates:
- Etherlink Upgrades (Q4 2025) – Better Layer 2 scaling and improved compatibility with Ethereum.
- Tezos X Launch (2026) – Easier developer tools with support for JavaScript and Python.
- Art on Tezos Berlin (Nov 6–9, 2025) – A big digital art event featuring over 200 artists.
- Liquid Staking Growth (2026) – Expanding DeFi options for stXTZ tokens.
In-Depth Look
1. Etherlink Upgrades (Q4 2025)
What’s happening:
Etherlink is Tezos’ Layer 2 solution that works with Ethereum. The upcoming upgrades will make it faster and better at connecting with Ethereum’s network. Thanks to incentives like the $3 million Apple Farm Season 2, the total value locked (TVL) on Etherlink jumped from $1.4 million to $47.7 million in 2025 (CoinMarketCap).
Why it matters:
This is good news for Tezos (XTZ) because it could attract developers and funds from Ethereum, which often faces congestion. However, it’s unclear if this growth will last once the incentives end.
2. Tezos X Launch (2026)
What’s happening:
Tezos X, announced at TezDev 2025, will connect Tezos’ main network (Layer 1) with Layer 2 solutions like Tezlink. Developers will be able to use Michelson (Tezos’ programming language) and also benefit from Etherlink’s DeFi liquidity. It will support popular languages like JavaScript and Python, making it easier to build apps (Arthur Breitman’s keynote).
Why it matters:
This could help Tezos grow by making it easier for developers to build and scale apps. But it faces competition from other Layer 2 platforms like Arbitrum, so success isn’t guaranteed.
3. Art on Tezos Berlin (Nov 6–9, 2025)
What’s happening:
More than 200 artists will display digital art on the blockchain in Berlin, highlighting Tezos’ focus on eco-friendly NFTs. Collaborations with major institutions like MoMA show growing cultural interest (Crypto.News).
Why it matters:
This event strengthens Tezos’ reputation in the digital art world but is unlikely to cause big price changes. It helps position Tezos as a leader in sustainable art NFTs.
4. Liquid Staking Growth (2026)
What’s happening:
After launching stXTZ tokens on Etherlink in August 2025, Tezos plans to expand liquid staking across its DeFi ecosystem. Liquid staking lets users earn rewards while still using their tokens in other DeFi activities (Cryptopotato).
Why it matters:
This is promising for Tezos if more people use it, but its DeFi market is still small (TVL around $50 million) compared to bigger platforms like Ethereum.
Conclusion
Tezos is focusing on improving Ethereum compatibility, scaling solutions, and niche areas like digital art and real-world assets. These moves could bring more developers and users, but Tezos will need to prove it can compete with larger platforms and maintain long-term growth. Will Tezos’ unique approach to modularity and culture help it outpace slower DeFi growth?
What updates are there in the XTZ code base?
Tezos (XTZ) made significant improvements in the third quarter of 2025, focusing on making the network faster, more secure, and easier to use for developers and institutions.
- Seoul Upgrade (September 19, 2025) – Introduced advanced multisignature wallets for institutions and cut network validation costs by 98%.
- Jstz JavaScript Integration (August 6, 2025) – Allowed smart contracts to be written in JavaScript and TypeScript, popular programming languages.
- Liquid Staking on Etherlink (August 13, 2025) – Launched stXTZ tokens that let users earn rewards and use their XTZ tokens in decentralized finance (DeFi) without unstaking.
Deep Dive
1. Seoul Upgrade (September 19, 2025)
Overview: This update added native multisignature (multisig) wallets, which let multiple people or organizations securely manage shared accounts. It also made the network much more efficient by reducing the amount of data needed to validate transactions by 63 times.
The upgrade uses a technology called BLS signatures to combine multiple approvals into one proof, making it easier and safer for institutions to manage XTZ. It also lowered the daily data needed for network validation from 900 MB to just 14 MB, meaning running a node requires less powerful hardware.
Why it matters: This is a big win for Tezos because it makes the network more attractive to institutions that need strong security, while also lowering costs for smaller participants. (Source)
2. Jstz JavaScript Integration (August 6, 2025)
Overview: Jstz lets developers write smart contracts on Tezos using JavaScript or TypeScript, instead of the more complex native language called Michelson.
This means developers familiar with web programming can now build on Tezos without learning a new language. The integration supports TypeScript out of the box and works with popular JavaScript tools.
Why it matters: This lowers the barrier for web developers to create applications on Tezos, which could lead to more projects and growth in the ecosystem. However, how much it boosts adoption depends on how many developers take advantage of it. (Source)
3. Liquid Staking on Etherlink (August 13, 2025)
Overview: Tezos introduced stXTZ, a liquid staking token on its Layer 2 network called Etherlink. This lets users lock up their XTZ tokens to earn staking rewards while still using stXTZ tokens in DeFi applications.
The system locks XTZ on the main Tezos blockchain and creates ERC-20 stXTZ tokens on Etherlink. A Chainlink oracle provides real-time price data to DeFi platforms like IguanaDEX and Superlend.
Why it matters: This feature improves capital efficiency for XTZ holders by allowing them to participate in DeFi without giving up staking rewards. It could also increase the total value locked (TVL) in DeFi on Etherlink. (Source)
Conclusion
Tezos’ recent updates focus on making the platform ready for enterprise use (Seoul upgrade), easier for developers to build on (Jstz integration), and more useful in DeFi (liquid staking with stXTZ). With institutional multisignature wallets now available and growing DeFi activity on Etherlink, these changes could strengthen XTZ’s position in the growing market for tokenized real-world assets.