What is expected in the development of XTZ?
Tezos is making important progress with these key updates:
- Tezos X Scalability Rollout (2025–2026) – Building a flexible system to handle more transactions quickly using Layer 2 solutions.
- stXTZ Liquid Staking Expansion (Q4 2025) – Improving decentralized finance (DeFi) options by letting users stake Tezos (XTZ) while still using their tokens in other financial activities.
- Tezlink Cross-Chain Integration (2026) – Connecting Tezos with Etherlink to allow developers to build apps that work across both platforms easily.
- Reaper Actual Gaming Ecosystem (Ongoing) – Growing a major gaming project on Etherlink that uses NFTs and player-owned assets.
Deep Dive
1. Tezos X Scalability Rollout (2025–2026)
Overview: Tezos X, announced at TezDev 2025, aims to combine the security of Tezos’ main blockchain (Layer 1) with the speed of Layer 2 solutions. It includes Etherlink, a Layer 2 compatible with Ethereum’s system, and Tezlink, a developer toolkit that supports popular programming languages like JavaScript and Python. The plan focuses on faster cross-chain transactions and better data storage with a new Data Availability Layer (DAL).
What this means: This is positive for Tezos (XTZ) because it could attract Ethereum developers looking for cheaper fees (around $0.001 per transaction) and decentralized control. However, delays could happen if not enough validators support the new system.
2. stXTZ Liquid Staking Expansion (Q4 2025)
Overview: Starting August 2025 on Etherlink, stXTZ lets users stake their XTZ tokens but still use them in DeFi applications. The Youves DAO will add stXTZ to lending platforms like Superlend and use it as collateral for synthetic assets. A Chainlink oracle will provide accurate, real-time price data.
What this means: This is somewhat positive because liquid staking can make capital more efficient, but if too many people stake without enough demand, rewards might decrease. It’s important to watch the stXTZ to XTZ value, which is currently stable at 1:1.
3. Tezlink Cross-Chain Integration (2026)
Overview: Tezlink will allow smart contracts on Tezos’ main chain to work directly with Etherlink’s Ethereum-compatible environment through a secure, trustless bridge powered by Bifröst upgrades. Developers will be able to combine Tezos’ Michelson language with Ethereum’s Solidity.
What this means: This is a strong positive because it merges Tezos’ security with Ethereum’s large user base and liquidity. Success depends on speeding up cross-chain transactions (currently about 1 minute) and keeping fees under one cent.
4. Reaper Actual Gaming Ecosystem (Ongoing)
Overview: The shooter game Reaper Actual, supported by $30.5 million in funding, is expanding its NFT-based in-game economy on Etherlink. Features include player-owned bases, tools for game modifications, and the ability to use assets across different platforms.
What this means: This is a high-risk, high-reward opportunity. Gaming could bring many new users to Tezos, but it faces tough competition from other blockchains. Watching monthly active users after the game’s October 2025 launch will show how well it’s doing.
Conclusion
Tezos is focusing on improving scalability (Tezos X), expanding DeFi options (stXTZ), and growing in areas like gaming. These modular upgrades aim to make Tezos more flexible and competitive over time. However, short-term success depends on how well Etherlink is adopted compared to other Layer 2 solutions. The big question: Can Tezos’ emphasis on decentralized governance and low fees help it stand out in a crowded market?
What updates are there in the XTZ code base?
Tezos’ software has received major updates that improve its speed, security, and ease of use.
- Seoul Protocol Upgrade (September 19, 2025) – Added built-in multisignature (multisig) support and made the network 63 times more efficient.
- Rio Protocol Upgrade (May 1, 2025) – Made staking simpler and improved Layer 2 scalability.
- Tezos X Roadmap Progress (August 1, 2025) – Focused on combining Layer 1 and Layer 2 features for better performance.
Deep Dive
1. Seoul Protocol Upgrade (September 19, 2025)
Overview: The Seoul upgrade introduced native multisignature support, which means accounts can now require multiple approvals for transactions, boosting security—especially for institutions. It also drastically reduced the amount of data needed to validate the blockchain, improving efficiency by 63 times (from 900 MB/day down to 14 MB/day).
Technical Details:
- Multisig Support: Removes the need for third-party tools to manage shared accounts, lowering security risks.
- BLS Signatures: Combines multiple cryptographic signatures into one, saving bandwidth and storage space.
- 1-Click Unstaking: Makes it easier for users to unlock their funds after a 4-day waiting period automatically.
Why it matters: This upgrade is great news for Tezos because it offers stronger security for institutional users and faster, smoother transactions for everyday users. (Source)
2. Rio Protocol Upgrade (May 1, 2025)
Overview: Rio improved staking by introducing shorter staking cycles and better rewards for those helping with Layer 2 scaling, which helps the network grow and stay reliable.
Technical Details:
- 1-Day Staking Cycles: Stakers can now lock their tokens for just one day, making their funds more accessible.
- DAL Integration: Validators earn rewards for supporting the Data Availability Layer (DAL), which boosts Etherlink Layer 2 throughput.
- Baker Penalties: Stricter rules for inactive “bakers” (node operators) help keep the network stable.
Why it matters: This update is somewhat positive for Tezos. Shorter staking cycles encourage more people to participate, but node operators have to be more responsible. (Source)
3. Tezos X Roadmap Progress (August 1, 2025)
Overview: Arthur Breitman, Tezos’ co-founder, shared progress on Tezos X, a plan to combine the security of Layer 1 with the speed and scalability of Layer 2.
Technical Details:
- Tezlink Compatibility: Developers can build on Tezos Layer 1 using Michelson or SmartPy programming languages while accessing Etherlink’s DeFi liquidity.
- EVM Interoperability: Etherlink supports the Ethereum Virtual Machine (EVM), making it easier to run Ethereum-based apps on Tezos.
- Performance Goals: Aiming for transaction finality in under a second and support for tiny payments, which is great for gaming and decentralized finance (DeFi).
Why it matters: This is a strong positive for Tezos because it makes the platform more attractive to developers, especially those familiar with Ethereum, and supports high-speed, high-volume applications. (Source)
Conclusion
Tezos is focusing on improving institutional security (Seoul), making staking more user-friendly (Rio), and building scalable infrastructure (Tezos X). These upgrades position Tezos (XTZ) as a strong candidate for tokenizing real-world assets and supporting fast-paced DeFi applications. With these efficiency improvements and Ethereum compatibility, Tezos could see increased developer activity and growth in 2026.
Why did the price of XTZ fall?
Tezos (XTZ) dropped 2.68% to $0.669 in the past 24 hours, underperforming the overall crypto market, which fell 0.7%. Here are the main reasons:
- Concerns about Etherlink L2 adoption – New gaming features and optional NFTs received mixed reactions.
- Technical resistance – Price hit a key resistance level at $0.784 and stayed below important moving averages.
- Shift in altcoin interest – Investors moved money to stronger performers like BNB, which gained 7% over the week, while the market remained mostly flat.
Deep Dive
1. Slowing Ecosystem Growth (Negative Impact)
Tezos’ Etherlink Layer 2 platform has grown, with $60 million locked in as of September 2025. However, recent gaming projects like Reaper Actual (released October 8) faced criticism because only a small portion of the game’s copies (10,000) include optional NFTs. Developer John Smedley mentioned that just 8% of players might use crypto features at first.
What this means: This lukewarm response contrasts with competitors like Cardano, which gained attention when Google Cloud started staking ADA tokens. As a result, Tezos’ position as a hub for decentralized finance (DeFi) and gaming weakened, leading to selling pressure.
What to watch: Keep an eye on Etherlink’s total value locked (TVL) and the adoption of stXTZ, a liquid staking token launched on August 13.
2. Price Faces Strong Resistance (Negative Impact)
XTZ failed to stay above the 23.6% Fibonacci retracement level at $0.784 and remains below its 30-day simple moving average (SMA) of $0.722. The Relative Strength Index (RSI) is neutral at 44.7, but the Moving Average Convergence Divergence (MACD) indicator shows bearish signs.
What this means: Sellers controlled the price near the $0.72 to $0.78 range, a key resistance zone since rallies in July 2025. Trading volume dropped 34.6% to $22.6 million in 24 hours, indicating weaker buying interest.
Key level: If XTZ closes below $0.65, which is the 200-day SMA, it could test the September low of $0.645.
3. Altcoin Market Sentiment Slows (Mixed Impact)
The CoinMarketCap Altcoin Season Index fell 5.88% in 24 hours, while Bitcoin’s dominance rose to 58.5%. Over the past 90 days, XTZ gained 11.5%, but this lags behind other altcoins like BNB, which rose 17% in the past week. This suggests investors are favoring stronger-performing coins.
What this means: Tezos currently lacks major catalysts compared to Ethereum, which benefits from ETF inflows, or BNB, which sees demand from its exchange platform. Also, XTZ’s 30-day price correlation with Ethereum dropped from 0.89 in July to 0.72 now, reducing its potential to follow Ethereum’s gains.
Conclusion
The recent decline in XTZ reflects broader caution around mid-sized altcoins and fading enthusiasm for Etherlink’s DeFi growth. Although the Seoul network upgrade on September 19 improved efficiency, traders are waiting for clearer signs of institutional interest or a rebound in locked value.
Key watch: Will Etherlink’s $3 million Apple Farm Season 2 rewards program, running until mid-November, boost developer activity? Watch the $0.65 to $0.72 price range for clues on the next direction.
What could affect the price of XTZ?
Tezos is balancing important protocol improvements with challenges from the broader market.
- Etherlink DeFi Growth – Total Value Locked (TVL) reached $60 million, and the new liquid staking feature could increase its usefulness.
- Seoul Protocol Upgrade – Added strong security features and made the system 63 times more efficient.
- Altcoin Market Pressure – Bitcoin’s dominance at 58.5% is putting pressure on smaller cryptocurrencies like Tezos.
Deep Dive
1. Etherlink DeFi Momentum (Positive Outlook)
Overview: Tezos’ Layer 2 solution, Etherlink, which is compatible with Ethereum’s technology, hit a new high with $60 million in TVL as of September 2025. In August 2025, Tezos introduced stXTZ liquid staking through Stacy.fi, allowing users to earn rewards while still using their tokens in decentralized finance (DeFi) applications. This approach is similar to Ethereum’s successful Lido platform.
What this means: Offering more flexible staking options could attract more investors who currently earn 5-7% returns by staking Tezos (Staking Platforms Report). If Etherlink keeps growing at its current pace, with a 189% increase in monthly transactions (Messari), demand for XTZ from users moving assets through Layer 2 solutions could rise.
2. Seoul Upgrade Adoption (Mixed Results)
Overview: The Seoul upgrade in September 2025 brought new features like native multisignature wallets (which require multiple approvals for transactions) and reduced the storage needs for network nodes by 63 times. These improvements make Tezos more appealing to institutional investors. However, only 9.5% more validator stake was added after the upgrade (Tezos Agora).
What this means: The efficiency improvements lower costs for businesses interested in tokenizing real-world assets (like uranium.io). But the low increase in validator participation suggests that community engagement and governance remain challenges, which could slow down the network’s growth.
3. Altcoin Liquidity Drain (Negative Outlook)
Overview: Bitcoin’s market share increased to 58.5% in October 2025, while the Altcoin Season Index dropped by nearly 30% weekly. Tezos’ 24-hour trading volume is low relative to its market cap, meaning it would take about 31 days to trade the entire supply at current volumes.
What this means: In times when investors are cautious, smaller cryptocurrencies like Tezos (which has dropped 23% over 60 days) tend to underperform. With $1.2 trillion in derivatives focused on Bitcoin and Ethereum, Tezos is vulnerable to big price swings caused by major economic events like Federal Reserve rate changes or U.S. government shutdowns.
Conclusion
Tezos’ future price depends largely on whether Etherlink can turn technical upgrades into lasting DeFi growth, while facing pressure from Bitcoin’s dominant market position. The Seoul upgrade improves Tezos’ appeal to businesses, but low validator engagement and limited liquidity present challenges.
Will Tezos’ 63x efficiency improvements lead to more developer activity, or will investors continue favoring Bitcoin’s ETF-driven liquidity?
What are people saying about XTZ?
Tezos (XTZ) is generating excitement with a strong price breakout and growing interest in its Layer 2 solutions, but some caution remains about whether it might be overextended. Here’s the latest:
- Etherlink’s DeFi growth is pushing price targets above $1.40.
- Big investors are increasing their positions in real-world asset (RWA) tokenization through Midas.
- Some analysts warn of overbought conditions and mixed signals between spot trading and derivatives.
In-Depth Look
1. @BRONDOR: Breakout could reach $1.40 if $1.10 holds 🔥
“Tezos broke through resistance easily… This isn’t just a seasonal rally; it’s a strong uptrend.”
– BRONDOR (1.2M followers · 420K impressions · July 20, 2025)
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What this means: Technical indicators suggest traders are positioning for a potential shift favoring altcoins like Tezos, signaling bullish momentum.
2. @Midas: $11M added to Etherlink Layer 2 TVL 📈
“Yield-generating token products focused on MEV and DeFi strategies brought in $417K net XTZ inflows.”
– Midas report (Etherlink TVL: $45.43M · July 19, 2025)
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What this means: Growing institutional interest in Tezos’ Ethereum-compatible Layer 2 platform supports its real-world asset tokenization story. However, reaching $100M total value locked (TVL) by Q3 is crucial for long-term confidence.
3. @AMBCrypto: Rally driven by derivatives, not spot market 🚩
“Spot market volume remains flat despite a 51% increase in open interest… RSI at 84 suggests a possible pullback to $0.70.”
– AMBCrypto analysis (July 20, 2025)
What this means: There’s a risk of a short-term price correction if speculative traders close their positions, but the $0.68–$0.75 range remains an important support zone for buyers.
Conclusion
The overall outlook for Tezos (XTZ) is optimistic but cautious. Etherlink’s growing adoption and favorable moving averages point to solid fundamentals, but signs of overbought conditions and price moves driven by derivatives could lead to volatility. Keep an eye on the $1.04 Fibonacci level for confirmation of a sustained breakout and watch Etherlink’s TVL growth as a sign of increasing institutional trust.
Will Tezos’ Layer 2 adoption be strong enough to balance risks from broader altcoin market shifts?
What is the latest news about XTZ?
Tezos is making moves in gaming, institutional upgrades, and decentralized finance (DeFi). Here’s a quick look at the latest developments:
- Reaper Actual Alpha Launch (October 8, 2025) – A new crypto-based shooter game from the creator of EverQuest is now in testing. It combines optional blockchain features with mainstream gaming.
- Seoul Protocol Upgrade (September 4, 2025) – This update adds native multisignature wallets and improves network efficiency by 63 times, aiming to attract institutional users.
- Etherlink Ecosystem Expansion (September 11, 2025) – With KuCoin integration and $60 million in total value locked (TVL), Tezos’ DeFi platform is gaining momentum.
Deep Dive
1. Reaper Actual Alpha Launch (October 8, 2025)
Overview: Reaper Actual is an open-world shooter game built on Tezos, created by John Smedley, known for EverQuest. The game focuses on skill-based play and offers optional NFT trading through the Etherlink platform. Players can buy entry packages ranging from $29.99 to $74.99, which include characters, bases, and future rewards. The developer expects only 8–30% of players to use the crypto features, distancing the game from typical “play-to-earn” models.
What this means: This is neutral for Tezos (XTZ). While the game could attract new users, the limited use of crypto features means it won’t have a big direct impact on the Tezos ecosystem. Still, it highlights Tezos’ ability to support more than just digital art and NFTs. (Decrypt)
2. Seoul Protocol Upgrade (September 4, 2025)
Overview: Tezos’ 19th network upgrade introduced native multisignature wallets, which require multiple approvals for transactions, enhancing security. It also reduced the amount of data needed for transaction validation by 63 times (from 900MB to 14MB daily), making the network more efficient. Additionally, the upgrade simplified the process of unstaking tokens by automating fund releases after a 4-day security period.
What this means: This is positive for Tezos (XTZ). The improved security features appeal to institutional investors, while the efficiency gains help Tezos compete with other blockchains like Ethereum and Solana. (CryptoBriefing)
3. Etherlink Ecosystem Expansion (September 11, 2025)
Overview: Etherlink, a Layer 2 platform on Tezos compatible with Ethereum’s virtual machine (EVM), reached $60 million in total value locked (TVL) after KuCoin enabled direct deposits of XTZ. New features include liquid staking through stXTZ tokens, integration with Curve Finance (a popular DeFi protocol), and an upgraded Temple Wallet 2.0 that supports assets across multiple blockchains.
What this means: This is a strong positive for Tezos (XTZ). Lower transaction fees (under $0.001) and partnerships with institutions like Hex Trust, which offers secure custody services, position Etherlink as a promising player in the DeFi space. (Finbold)
Conclusion
Tezos is balancing gaming innovation, enterprise-ready upgrades, and DeFi growth. The key question is whether these efforts will turn niche successes into widespread adoption. Keep an eye on Etherlink’s TVL growth after KuCoin’s integration and whether Reaper Actual’s blockchain features gain traction among players.