Why did the price of XTZ fall?

Tezos (XTZ) dropped 0.88% in the last 24 hours, underperforming the mostly steady crypto market, which was down 1.29%. Here’s why:

1. Profit-Taking in Altcoins – Investors moved money from mid-sized altcoins like XTZ into Bitcoin as BTC stayed above $94,500.
2. Technical Resistance – XTZ couldn’t break past the $0.60 price level, leading to some selling.
3. Low Momentum – XTZ’s weekly gain of 1.8% was weaker than other top coins, reducing buying interest.

Deep Dive

1. Weakness Across Altcoins (Negative Impact)

Bitcoin’s market share increased to 59.24% as traders cashed out of altcoins such as PEPE (-8%) and BONK (-5.9%), according to CoinDesk. The Altcoin Season Index fell 47% over the week, showing that investors are avoiding riskier coins. Although XTZ was up 2.68% earlier on Thursday, it fell back due to selling pressure affecting the whole altcoin market.

What this means: Tezos isn’t currently benefiting from popular trends like meme coins or AI-related tokens, so it’s losing capital to Bitcoin. Trading volume for XTZ jumped 68% to $52 million, but this mostly reflects people selling rather than buying.

2. Technical Resistance at Key Price Level (Mixed Impact)

XTZ hit resistance at $0.584, which is a key technical level based on Fibonacci retracement from its 2025 price range. The MACD indicator turned negative, signaling that upward momentum is weakening. On the bright side, the 30-day moving average at $0.509 acted as support, preventing a bigger drop.

What to watch: If XTZ closes above $0.60, it could spark renewed buying. But if it falls below $0.56, it might test the 50-day moving average at $0.533, which could lead to further declines.

3. Positive Updates vs. Broader Market Concerns (Neutral)

Good news like SCOR’s new cross-chain NFT feature on Tezos (CoinMarketCap) has been overshadowed by cautious trading ahead of important U.S. Treasury reports. While 59% of XTZ tokens are staked (locked up for rewards), this hasn’t yet helped push the price higher.

Conclusion

The recent drop in XTZ mainly reflects caution across the crypto market rather than problems specific to Tezos. Investors are favoring Bitcoin for liquidity amid economic uncertainty, and without strong short-term news, Tezos is vulnerable to broader market swings.

Key to watch: Will XTZ hold the $0.56 support level if Bitcoin falls below $94,500? Keep an eye on derivatives data for signs that leveraged long positions are being closed out.

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What could affect the price of XTZ?

Tezos balances protocol improvements with market changes, offering cautious optimism as the crypto landscape evolves.

1. Etherlink Bifröst Upgrade – Adding Ethereum compatibility could increase developer interest (Q1 2026)
2. Institutional Real-World Asset (RWA) Adoption – Tokenizing uranium and forming partnerships show practical uses
3. Staking & Liquidity Trends – 59% of Tezos is staked, with new liquid staking options emerging

Deep Dive

1. Protocol Upgrades: Etherlink’s EVM Leap (Positive Outlook)

Overview: The Etherlink Bifröst upgrade, planned for early 2026, will improve Tezos’ compatibility with the Ethereum Virtual Machine (EVM). This means developers can more easily move Ethereum-based decentralized apps (dApps) to Tezos. This follows the Seoul upgrade in September 2025, which brought stronger security for institutions and made the network 63 times more efficient.

What this means: Better EVM compatibility could attract projects from Ethereum looking for lower fees and Tezos’ unique on-chain governance. Past examples, like Etherlink’s $70 million growth in total value locked (TVL) after launch, suggest this upgrade could boost adoption.

2. Real-World Asset Tokenization (Mixed Outlook)

Overview: Tezos’ uranium.io platform enables tokenizing physical uranium, and partnerships with big players like Société Générale show growing institutional interest. However, regulatory challenges around tokenizing commodities remain a concern.

What this means: If successful, Tezos could stand out in the growing real-world asset market, expected to reach $10 trillion by 2030. But delays or legal issues, similar to those seen in cases like SEC v. Ripple, could slow progress.

3. Staking & Market Positioning (Neutral to Positive)

Overview: About 59% of Tezos tokens are staked (source), which helps secure the network. The introduction of stXTZ liquid staking on Etherlink combines earning rewards with participation in decentralized finance (DeFi). However, competition is strong—Solana has a 96% staking rate, and Ethereum leads in liquid staking derivatives (LSDs).

What this means: Steady staking rewards (around 6% annual percentage yield) may attract long-term investors. Still, Tezos’ small market share (0.019% compared to Solana’s 1.2%) highlights the need for ecosystem growth to move beyond mid-tier status.

Conclusion

Tezos’ future price depends on successfully rolling out Etherlink’s upgrades and expanding real-world asset use cases. These factors could push the price above $1.50 by late 2026. However, broader economic challenges and competition from other blockchains may limit gains. Keep an eye on the XTZ/Etherlink TVL ratio after the Bifröst upgrade—if total value locked stays above $100 million, it could signal a positive turning point.

What are people saying about XTZ?

Talk around Tezos (XTZ) is swinging between hopes for a price breakout and concerns about potential declines. Here’s the latest:

1. Traders are watching the $1.40 mark as the broader altcoin market heats up, with some coins seeing daily gains of 42%.
2. Some analysts warn that if key support levels fail, Tezos could drop to around $0.38.
3. The Tezos ecosystem is growing quickly, with real-world use cases and important upgrades underway.
4. Long-term outlooks suggest Tezos could reach $2.46 by 2026 if planned scalability improvements succeed.

Deep Dive

1. BRONDOR: Altseason Momentum Builds (Bullish)

"Tezos broke through resistance... a clear path to $1.40 if $1.10 holds. Altseason isn’t coming. It’s happening."
– BRONDOR (Post · July 20, 2025, 9:34 AM UTC)
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What this means: This is positive for Tezos. Holding above $1.10 could speed up gains toward $1.40, showing strong trader confidence as investors rotate into altcoins.

2. Finora_EN: Bearish Breakdown Looms (Bearish)

"If price falls below $0.4206... it could continue down to $0.4077 and possibly $0.3843."
– @Finora_EN (6.5K followers · December 24, 2025, 12:22 PM UTC)
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What this means: This is a warning sign. If selling pressure continues, Tezos could drop about 15%, indicating weak short-term price support.

3. Tezos: Ecosystem Growth Surges (Bullish)

"November showed strong progress... Etherlink’s record growth, a protocol upgrade, and Uranium.io’s real-world breakthroughs."
– @tezos (441K followers · November 28, 2025, 10:30 AM UTC)
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What this means: This is encouraging. Upgrades like Etherlink Bifröst expected in early 2026 and increased real-world asset adoption could boost Tezos’s usefulness and demand.

4. CoinMarketCap: Scalability Upgrades Fuel Optimism (Bullish)

"Tezos X upgrade adding support for JavaScript and Python... 2026 price target: $2.46."
– CoinMarketCap (Article · January 8, 2026, 10:16 AM UTC)
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What this means: This is positive news. Making Tezos easier for developers to use could attract new projects, helping the price recover if adoption grows.

Conclusion

The outlook for Tezos is mixed. While some technical signals suggest potential price drops, ongoing ecosystem growth and upcoming upgrades offer reasons for optimism. Keep an eye on the $0.60 support level—if it holds, bullish forecasts gain credibility; if it breaks, lower price targets may come into play.

What is the latest news about XTZ?

Tezos is standing strong amid market ups and downs, thanks to technology improvements and growing use of NFTs in gaming, while many other altcoins are pulling back. Here’s the latest:

1. Tezos Outperforms as Altcoins Pull Back (January 15, 2026) – XTZ climbed 2.68% with a big jump in trading volume to $44 million, going against the trend of profit-taking.
2. SCOR Connects Sports NFTs Across Blockchains (January 14, 2026) – A new cross-chain wallet feature lets users unlock Tezos NFT benefits in SCOR games without moving their assets.
3. Tezos Staking Ratio Steady at 59.0% (January 13, 2026) – A high percentage of XTZ is staked, showing strong network security and commitment from validators.

Deep Dive

1. Tezos Outperforms as Altcoins Pull Back (January 15, 2026)

What happened: On January 15, 2026, Tezos (XTZ) increased by 2.68% to $0.578, while many other altcoins saw declines as investors took profits. Trading volume jumped 47% to $44 million. Bitcoin stayed steady, but coins like PEPE dropped between 5.9% and 8%. This shows Tezos is holding up well in a cautious market.

Why it matters: This suggests investors are accumulating Tezos even when the market is weak, possibly favoring established projects with active development. The higher trading volume also points to growing interest from traders. (CoinDesk)

2. SCOR Connects Sports NFTs Across Blockchains (January 14, 2026)

What happened: SCOR introduced a Cross-Chain Wallet Linking feature on January 14, 2026. This lets users link wallets holding sports NFTs on Tezos, Ethereum, or Polygon to unlock special in-game perks in SCOR games—without needing to transfer their NFTs. Verified owners get benefits like gem multipliers, and over 2,000 athletes are featured.

Why it matters: This expands the real-world use of Tezos-based NFTs, attracting sports fans and boosting demand. It also highlights Tezos’ ability to work smoothly with other blockchains and bring collectibles to a wider audience. (CoinMarketCap Community)

3. Tezos Staking Ratio Steady at 59.0% (January 13, 2026)

What happened: As of January 13, 2026, about 59% of all circulating XTZ is staked, according to DigitalAssetMaster. This ranks Tezos seventh among major blockchains. Staking means locking up coins to help secure the network.

Why it matters: A high staking rate means better network security and fewer coins available for trading, which can support prices. It also shows strong commitment from validators who maintain the blockchain. Some experts caution that very high staking levels might lead to centralization risks, but overall this is a positive sign. (Gate.com)

Conclusion

Tezos is showing resilience in the market, growing its gaming NFT use, and maintaining strong network security. These factors could help XTZ gain value as they develop further. The big question is whether increased NFT integration and staking rewards will keep attracting steady investment.

What is expected in the development of XTZ?

Tezos is moving forward with several key developments in 2026:

1. Tezos X Full Implementation (Q2 2026) – Completing upgrades to improve speed and combine security with performance.
2. Etherlink Bifröst Upgrade (First Half 2026) – Making it easier to move assets between Ethereum, Solana, and Tezos, plus adding privacy features.
3. Fortify Labs Cohort Launch (March 2026) – A $1.3 million program to support new Web3 startups building on Tezos and Etherlink.
4. Uranium.io Expansion (2026) – Growing the platform for trading tokenized uranium and working with regulators.

Deep Dive

1. Tezos X Full Implementation (Q2 2026)

Overview: Building on Arthur Breitman’s 2025 TezDev keynote, this update finalizes Tezos X, which aims to combine the strong security of Tezos’ base layer (Layer 1) with the faster processing power of Layer 2. It introduces Smart Rollups that support popular programming languages like JavaScript and Python, and aims to handle over 1 million transactions per second through improved consensus methods.

What this means: This is good news for Tezos (XTZ) because it could attract developers from Ethereum who want lower transaction fees (around $0.001 on average) without losing decentralization. However, there’s a risk of delays since only 40% of the test features were ready for production as of January 2026.

2. Etherlink Bifröst Upgrade (First Half 2026)

Overview: Etherlink, Tezos’ Layer 2 solution compatible with Ethereum’s Virtual Machine (EVM), will integrate LayerZero technology to enable smooth asset transfers between Ethereum, Solana, and Tezos. It will also add zero-knowledge proof (zk-proof) privacy features, which are important for secure enterprise deals involving real-world assets (RWAs).

What this means: This upgrade could increase the total value locked (TVL) on Tezos, which currently stands at $45 million. However, Etherlink faces strong competition from other Layer 2 solutions like Arbitrum. Its success will depend on adoption by partners such as Midas (which offers tokenized Treasury bills) and Uranium.io.

3. Fortify Labs Cohort Launch (March 2026)

Overview: Fortify Labs, an accelerator program run by TZ APAC, is starting a new cohort to support projects focused on decentralized finance (DeFi) tools for Etherlink and institutional real-world assets. The program offers funding and mentorship, with applications closing on January 30. More details can be found here.

What this means: This is a positive sign for Tezos’ long-term growth. Past participants saw a 156x increase in users. However, the $1.3 million fund is relatively small compared to other ecosystems like Polygon, which offers over $100 million in incentives.

4. Uranium.io Expansion (2026)

Overview: After launching in 2025, Uranium.io plans to expand by adding physical uranium vaults and partnering with energy traders. Co-founder Arthur Breitman discussed regulatory progress at the November 2025 Federal Reserve Conference.

What this means: This is a high-risk, high-reward opportunity. The uranium market is worth over $50 billion and could create unique demand for tokenized uranium. However, regulatory scrutiny from the SEC is a concern. Currently, Uranium.io accounts for about 0.6% of Tezos’ trading volume.

Conclusion

Tezos’ 2026 roadmap balances important technical improvements (Tezos X and Bifröst) with strategic moves into real-world assets and developer support. While the uranium project offers a unique angle, much depends on Etherlink’s ability to compete in the DeFi space against established Layer 2 platforms. With the altcoin market showing moderate strength (index at 30/100), Tezos’ focused approach will be tested against broader market challenges.

What updates are there in the XTZ code base?

Tezos (XTZ) made significant improvements to its technology and ecosystem through late 2025.

1. Seoul Protocol Upgrade (September 2025) – Added built-in multisignature security and improved network efficiency by 63 times.
2. Tezos X Roadmap Progress (Q4 2025) – Enhanced scalability with support for popular programming languages like JavaScript and Python.
3. Etherlink Farfadet Upgrade (December 2025) – Doubled transaction speed on Layer 2 to over 1,000 transactions per second (TPS).

Deep Dive

1. Seoul Protocol Upgrade (September 2025)

Overview: This upgrade introduced native multisignature (multisig) security, which allows multiple users to jointly manage accounts without relying on external tools. It also drastically reduced the amount of data needed to validate the network by 63 times.

By integrating BLS signatures, institutions can now securely manage funds on the Tezos blockchain. Additionally, the daily data required to run a node dropped from 900 MB to just 14 MB, making it cheaper and easier to operate.

What this means: This is a positive development for Tezos. Institutions gain stronger security for managing assets, and smaller network participants benefit from lower hardware costs. (Source)

2. Tezos X Roadmap Progress (Q4 2025)

Overview: Tezos is working on major scalability improvements by optimizing “rollups” (a technology that bundles many transactions together) and adding support for widely used programming languages like JavaScript and Python.

At the TezDev 2025 event, developers showcased early versions of these features, aiming for a full launch on the main network by mid-2026. The plan also focuses on fast communication between rollups and transaction finality in under a second.

What this means: While the immediate impact is limited, these upgrades could attract developers from other blockchains like Ethereum and Solana who want faster, less congested networks in the future.

3. Etherlink Farfadet Upgrade (December 2025)

Overview: Tezos’ Layer 2 solution compatible with Ethereum’s Virtual Machine (EVM) doubled its transaction capacity to over 1,000 TPS while keeping fees below $0.001.

This upgrade quickly adopted Ethereum’s latest standards, ensuring smooth cross-chain compatibility. It followed a huge increase in total value locked (TVL) on the platform—up 5,566% to $82.7 million in 2025—driven by decentralized finance (DeFi) projects like Oku and Curve.

What this means: Faster and cheaper transactions make Tezos more competitive in gaming and DeFi markets, challenging other Layer 2 solutions like Arbitrum and Polygon. (Source)

Conclusion

Tezos is advancing on three fronts: enterprise-level security (Seoul upgrade), easier development with popular programming languages (Tezos X), and faster, scalable transactions (Etherlink). With growing institutional interest in tokenized assets like uranium and art NFTs, Tezos is well-positioned to potentially climb back into the top 20 cryptocurrencies by market value.