Why did the price of XTZ fall?

Tezos (XTZ) dropped slightly by 0.12% in the last 24 hours, settling at $0.605. This small dip is part of a larger trend, with XTZ down 8.7% over the past week and 21% over the past month. The decline matches the overall weakness in the crypto market, which saw a 1.5% drop in total market value, but also reflects specific negative trends and sentiment around Tezos itself.

1. Technical Breakdown (Bearish Impact) – XTZ fell below important Fibonacci support levels and is facing ongoing selling pressure within a downward price channel.
2. Market Sentiment (Mixed Impact) – Interest in altcoins like XTZ remains low, with the crypto Fear & Greed Index showing “Fear” at 32.
3. Volume Decline (Bearish Impact) – Trading volume for XTZ dropped 19% in 24 hours, indicating weaker buying activity.

Deep Dive

1. Technical Breakdown (Bearish Impact)

Overview: Tezos is trading within a downward channel, with sellers pushing back any price rebounds near $0.61, the upper boundary of this channel. Key technical indicators support this bearish outlook: the Relative Strength Index (RSI) is at 39.62 and trending lower toward oversold levels, while the MACD histogram shows negative momentum. The price has also fallen below the 0.382 Fibonacci retracement level at $0.75 and is now testing the 0.236 level around $0.74.

What this means: The absence of signs for a price reversal and the pattern of lower highs since mid-October suggest continued selling pressure. If XTZ falls below the immediate support level at $0.55, it could lead to a sharper drop toward $0.43, according to CCN.

What to watch: A price recovery above $0.73 (the 0.382 Fibonacci level) could indicate a potential trend reversal, but current momentum favors further declines.

2. Market Sentiment & Altcoin Weakness (Mixed Impact)

Overview: The Altcoin Season Index, which measures how well altcoins perform compared to Bitcoin, has dropped 59% over the past 30 days to a low score of 29 out of 100. This suggests investors are moving money away from mid-sized tokens like Tezos. Meanwhile, Bitcoin’s market dominance remains high at 58.7%, putting additional pressure on altcoins.

What this means: Tezos’s underperformance reflects a cautious market mood, with investors favoring Bitcoin over other cryptocurrencies. The overall crypto market has also declined by 12.3% over the past week, adding to the selling pressure on altcoins.

3. Volume Decline & Liquidity Risks (Bearish Impact)

Overview: Trading volume for Tezos in the last 24 hours fell to $22 million, a 19% decrease from the previous day. The turnover ratio (volume divided by market cap) is low at 3.4%, indicating limited liquidity.

What this means: Low liquidity can increase price volatility and make it harder for large buyers to enter the market without causing big price swings. The drop in trading volume also suggests that fewer traders are confident in a near-term price rebound.

Conclusion

While Tezos’s small 24-hour price drop might seem minor, it hides deeper challenges. The technical indicators point to continued downward pressure, market sentiment remains cautious toward altcoins, and liquidity is thin. These factors suggest traders expect further declines in XTZ’s price.

Key watch: Will Tezos hold its $0.55 support level, or will falling below it trigger a sharper sell-off? Keep an eye on Bitcoin’s market dominance and activity in Ethereum-based decentralized finance (DeFi) platforms for clues about altcoin market sentiment.

What could affect the price of XTZ?

Tezos is facing some challenges but is making important upgrades and exploring real-world uses that could shape its future.

1. Etherlink Layer 2 growth – Total value locked (TVL) rose to $60 million, but it’s unclear if this will last once rewards end (Mixed Impact)
2. Protocol upgrades – The Seoul update brings better tools for institutions, but weak interest in altcoins limits gains (Bullish/Bearish)
3. Real-world asset tokenization – Uranium.io’s unique approach has potential but faces risks from commodity price swings (Mixed Impact)

Deep Dive

1. Etherlink Layer 2 Momentum (Mixed Impact)

Overview: Tezos’ Layer 2 solution, Etherlink, which works with Ethereum-compatible apps, reached $60 million in TVL by September 2025. This growth was driven by a $3 million rewards program and partnerships like Curve Finance. However, 92% of this increase happened during the reward period, raising doubts about lasting interest. Daily active users grew dramatically in 2024 but have since leveled off.

What this means: Etherlink’s growth could bring more decentralized finance (DeFi) activity and developers to Tezos. But since much of the growth depends on incentives, there’s a risk TVL could drop once rewards stop. For Tezos (XTZ), this is a high-risk, high-reward situation: if Etherlink keeps growing naturally, it could boost demand for Tezos’ core network. If not, it might reinforce negative views.

2. Protocol Upgrades & Market Sentiment (Bullish/Bearish)

Overview: The Seoul upgrade, launched in September 2025, made Tezos much more efficient—63 times faster—and added advanced security features like multisignature wallets for institutions. Despite these improvements, XTZ’s price dropped 31% over the past 60 days, underperforming the overall crypto market, which fell about 12% in the last week. The Altcoin Season Index is low at 29/100, showing investors are favoring Bitcoin over altcoins.

What this means: Technically, Seoul strengthens Tezos’ network, allowing it to handle more transactions with better security. But broader market trends, like Bitcoin’s dominance at nearly 59%, limit how much XTZ can benefit right now. If investors start moving back into altcoins, Tezos could see bigger gains. For now, caution is advised.

3. Uranium Tokenization & Real-World Asset (RWA) Risks (Mixed Impact)

Overview: Tezos launched uranium.io in May 2025, a platform that turns physical uranium into digital tokens (xU3O8), held securely by Hex Trust. This is an innovative way to connect blockchain with real-world commodities. However, uranium prices have been volatile, swinging 22% this year due to geopolitical issues, making the tokens less stable as collateral.

What this means: If successful, this could make Tezos a leader in tokenizing real-world assets, attracting a niche market. But the volatility of uranium prices and strict regulations around nuclear materials create challenges. Compared to Ethereum’s broader real-world asset projects, this remains a speculative area for Tezos.

Conclusion

Tezos’ future price depends on whether Etherlink can keep growing after incentives end, how Bitcoin’s market dominance changes, and how well Tezos can differentiate itself with real-world assets. While upgrades like Seoul improve the network’s fundamentals, XTZ needs a shift in market sentiment toward altcoins to recover from its recent 31% drop over two months. Watch the $0.55 support level closely—if it breaks, it could trigger panic selling; if it holds, it might signal buyers stepping in.

Will Tezos’ focus on uranium tokenization help it overcome current challenges in a cautious market?

What are people saying about XTZ?

Conversations around Tezos (XTZ) are swinging between excitement over a potential breakout and caution during a period of price stabilization. Here’s what’s currently making headlines:

1. Etherlink’s DeFi Growth – Total Value Locked (TVL) reaches $45 million, boosting positive outlooks.
2. Strong Price Movement – A 42% daily price jump breaks a seven-month downward trend.
3. Bearish Signals – A descending price channel suggests a possible drop to $0.50.
4. Big Investors’ Moves – Large spot purchases total $72 million, but some profit-taking is causing concern.

In-Depth Analysis

1. Etherlink’s Institutional Adoption Drives Optimism

John Morgan (@johnmorganFL) reports:
“XTZ jumped 42% as Midas’ tokenized yield products pushed Etherlink’s TVL to $45.43 million, an 8% increase over the week. The CEO highlights the potential of Real-World Assets (RWA).”
(Source: John Morgan’s post)
What this means: This is a positive sign for Tezos, as Etherlink’s growth shows that Tezos’ Layer 2 solutions are attracting serious institutional interest in decentralized finance (DeFi). Keep an eye on Q3 targets aiming for TVL above $100 million.

2. Social Media Buzz Reflects Breakout Excitement

BRONDOR (@BRONDOR) notes:
“XTZ surged 76% in just 2.5 days, breaking through resistance levels. If it holds above $1.10, the price could reach $1.40. Altcoins are heating up!”
(Source: BRONDOR’s post)
What this means: Traders are optimistic in the short term, but the Relative Strength Index (RSI) at 91 warns the asset might be overbought. Watch the $1.20 to $1.22 price range as a key resistance zone.

3. Bearish Price Patterns Remain

Victor Olanrewaju (@Victor Olanrewaju) explains:
“XTZ is stuck in a descending price channel. The Chaikin Money Flow (CMF) indicator at -0.13 suggests selling pressure. There’s a risk of the price dropping to $0.55 unless it breaks above $0.73.”
(Source: Victor Olanrewaju’s analysis)
What this means: This points to a bearish outlook, with sellers controlling the market on longer timeframes. If the price falls below $0.60, it could trigger a wave of forced selling.

4. Large Investors’ Activity Shows Mixed Signals

AMBCrypto (@AMBCrypto) reports:
“Whales purchased $72 million worth of XTZ in spot markets within 24 hours, but $4.5 million moved to exchanges, indicating some profit-taking. Open interest in futures contracts rose by 343%.”
(Source: AMBCrypto article)
What this means: There’s a tug-of-war between big investors accumulating XTZ and others cashing out profits. The high RSI of 93 suggests the market may be overbought. Keep an eye on how much XTZ flows into exchanges, as this could signal upcoming selling pressure.

Conclusion

The outlook for Tezos (XTZ) is currently mixed. On one hand, strong technical signals and Etherlink’s growing DeFi presence support a bullish case. On the other, bearish price patterns and signs of profit-taking create caution. The recent break of a seven-month downtrend shows momentum, but a 21% price drop over the past 30 days reflects ongoing uncertainty. Key levels to watch are Etherlink’s TVL growth and the $0.73 resistance price—breaking above could spark a new rally, while failure to do so might confirm bearish trends.

What is the latest news about XTZ?

Tezos is dealing with downward price pressure while making strides in gaming and decentralized finance (DeFi). Here’s the latest update:

1. Bearish Price Outlook (October 16, 2025) – Tezos (XTZ) could fall to $0.55 due to ongoing selling.
2. Reaper Actual Alpha Launch (October 8, 2025) – A new crypto-based shooter game by EverQuest’s co-creator begins testing on Tezos.
3. KuCoin Supports Etherlink (September 11, 2025) – KuCoin now allows XTZ deposits on Etherlink Layer 2, helping push total value locked (TVL) to $60 million.

Deep Dive

1. Bearish Price Outlook (October 16, 2025)

What’s happening: Tezos (XTZ) is trading around $0.61 but is stuck in a downward trend. Key indicators like the Relative Strength Index (RSI) at 40 and the Chaikin Money Flow (CMF) at -0.13 suggest more money is leaving than entering. Sellers are in control, and the price might drop to $0.55 support. If it falls below $0.46, it could hit its lowest levels in months. To turn things around, the price needs to rise above $0.73.
Why it matters: The market sentiment is weak, favoring sellers. However, broader cryptocurrency market conditions might delay any price recovery. (CCN)

2. Reaper Actual Alpha Launch (October 8, 2025)

What’s happening: John Smedley’s studio released Reaper Actual, a team-based shooter game running on Tezos. Players pay $29.99 or more to join, with the option to trade in-game assets as NFTs through Etherlink. While some criticize the use of crypto in gaming, Smedley focuses on making the gameplay the priority.
Why it matters: This game could introduce Tezos to a wider gaming audience, increasing its real-world use. However, only about 8% of players initially use the NFT features, so the immediate impact is limited. (Decrypt)

3. KuCoin Supports Etherlink (September 11, 2025)

What’s happening: KuCoin, a major crypto exchange, now supports native XTZ deposits and withdrawals on Etherlink, a Layer 2 solution compatible with Ethereum Virtual Machine (EVM) on Tezos. This integration helped push the total value locked (TVL) on Etherlink to $60 million, boosted by stXTZ liquid staking and stablecoin pools from Curve Finance.
Why it matters: This improves liquidity and brings advanced DeFi tools, like Gearbox Protocol’s $400 million vaults, to Tezos. It strengthens Tezos’ position as a credible platform for decentralized finance. (Finbold)

Conclusion

Tezos is facing mixed signals. The price trend looks bearish, but new developments in gaming and DeFi show growing potential. While technical indicators suggest more downside risk, the expansion of Etherlink and the launch of Reaper Actual highlight Tezos’ long-term usefulness. The key question is whether growing adoption within the ecosystem can overcome broader market challenges.

What is expected in the development of XTZ?

Tezos is making important progress with these key updates:

1. Etherlink Layer 2 Expansion (Q4 2025) – Improving compatibility with Ethereum-based apps and increasing decentralized finance (DeFi) activity through partnerships like Oku.
2. Tezos X Scalability Upgrades (2026) – Making the blockchain more flexible by supporting popular programming languages and improving how different blockchain layers work together.
3. Liquid Staking Growth – Launching stXTZ in August 2025 to let users earn rewards while using their tokens in DeFi protocols.

In-Depth Look

1. Etherlink Layer 2 Expansion (Q4 2025)

What is it? Etherlink is a Layer 2 solution on Tezos that works with Ethereum’s technology, making it easier for Ethereum apps to run on Tezos. It recently lowered transaction fees to about $0.001 and added bridges like LayerZero to move assets between blockchains. One key partner is Oku, which brings Uniswap v3’s trading features to Tezos through Etherlink (Oku integration).

Why it matters: More DeFi activity on Etherlink could increase demand for Tezos’ core network, potentially boosting the value of XTZ. However, Tezos faces competition from other blockchains that also support Ethereum apps.

2. Tezos X Scalability Upgrades (2026)

What is it? Tezos X is a new version of the Tezos blockchain designed to be more modular and developer-friendly. It will support popular programming languages like JavaScript and Python, speed up Layer 2 transaction finality, and improve how different blockchains connect and work together (Arthur Breitman’s keynote).

Why it matters: This upgrade could attract more developers to build on Tezos, helping it become a go-to platform for fast and scalable decentralized apps. Success depends on how well developers adopt these new features.

3. Liquid Staking Adoption

What is it? Starting August 2025, stXTZ will allow Tezos holders to stake their tokens (earn rewards for supporting the network) while still using those tokens in DeFi. The staking rewards are split so that 90% go to token holders, and 10% are managed by the Youves DAO, which helps govern the system (stXTZ details).

Why it matters: This makes staking more flexible and could encourage more people to participate, reducing the pressure to sell tokens. But if too many incentives flood the market, it could dilute rewards and affect token value.

Conclusion

Tezos is focusing on making its network faster and easier to use for developers, while also expanding its DeFi capabilities. These upgrades could help Tezos carve out a strong position in the blockchain space, especially for modular blockchains and real-world asset projects. The big question remains: Will Tezos’ improved Ethereum compatibility finally attract a wider developer audience?

What updates are there in the XTZ code base?

Tezos (XTZ) made significant improvements and expanded its ecosystem in 2025.

1. Rio Protocol Upgrade (May 1, 2025) – Made staking more flexible and improved scalability for Layer 2 solutions.
2. Tezlink Integration (July 29, 2025) – Connected Tezos’ main blockchain tools with Etherlink’s decentralized finance (DeFi) platform.
3. Liquid Staking Launch (August 13, 2025) – Introduced stXTZ, a token that lets users stake XTZ while still using their funds in DeFi.

Deep Dive

1. Rio Protocol Upgrade (May 1, 2025)

Overview: Activated at block #8,767,488, the Rio upgrade shortened staking cycles to just one day and introduced stricter penalties for bakers (those who validate transactions) who are inactive. This helps make the network stronger and more reliable.

Technical Details:

• Flexible Staking: Staking cycles were shortened from 2–3 days to 1 day, so rewards are paid out faster and delegators can adjust their stakes more quickly.
• Data Availability Layer (DAL) Rewards: Bakers now earn extra rewards for supporting the Data Availability Layer, which is important for scaling Layer 2 solutions like Etherlink.
• Inactivity Penalties: Bakers who are offline for 3 or more cycles (previously 5) face penalties, encouraging better network uptime.

What this means: This upgrade is positive for XTZ holders because faster staking cycles improve liquidity, and stricter rules help keep the network secure and reliable. The new rewards for DAL participation support Tezos’ plan to scale efficiently.
(Source)

2. Tezlink Integration (July 29, 2025)

Overview: As part of the Tezos X initiative, Tezlink allows developers to build smart contracts on Tezos’ main blockchain (Layer 1) using familiar tools, while also accessing Etherlink’s DeFi ecosystem.

Technical Details:

• Cross-Layer Compatibility: Developers can create contracts on Tezos Layer 1 and interact with Etherlink’s Ethereum Virtual Machine (EVM)-compatible DeFi apps, like Uniswap v3 through Oku.
• Scalability: Supports fast and low-cost transactions (sub-second finality and $0.001 fees), making it suitable for applications like gaming and NFTs.

What this means: This integration is neutral to positive. It connects Tezos’ secure Layer 1 with Etherlink’s fast Layer 2, potentially attracting Ethereum developers looking for lower fees without losing decentralization.
(Source)

3. Liquid Staking Launch (August 13, 2025)

Overview: The launch of stXTZ on Etherlink allows users to stake their XTZ tokens while still using a derivative token in DeFi, unlocking liquidity that was previously locked up.

Technical Details:

• How it works: Users lock XTZ on Tezos Layer 1 and receive ERC-20 stXTZ tokens on Etherlink, which represent their stake and earn 90% of the staking rewards.
• Governance: Managed by the Youves DAO, with 10% of fees going to a reward pool.
• Price Feeds: Chainlink-compatible oracles keep the stXTZ token’s value aligned with XTZ.

What this means: This is a positive development because it allows XTZ holders to earn staking rewards while still participating in DeFi activities, making their assets more flexible and competitive with other liquid staking options like Lido’s stETH.
(Source)

Conclusion

Tezos’ 2025 updates focus on improving scalability (Rio), enabling cross-chain compatibility (Tezlink), and increasing DeFi usability (stXTZ). These moves position Tezos to better compete with Ethereum’s Layer 2 ecosystem. While most developer activity is happening on Etherlink, these upgrades strengthen Tezos’ reputation as a secure, governance-driven blockchain platform.

What’s next? Keep an eye on Etherlink’s total value locked (TVL) and whether stXTZ gains popularity compared to competitors like Lido’s stETH.