Key Takeaways

• XTZ’s recovery ground to a halt after it fell nearly 10%.
• The Tezos coin supports a blockchain which is designed to alter itself rather than having to rely on hard forks.
• Can XTZ return to recovery, or will it reach new lows?

Although the Tezos blockchain had a successful 2021, it struggled in 2022, losing more than 80% of its value. 

Although things have got better over the course of 2023 so far, it has recently experienced a significant downturn.

However, Tezos has managed to install new upgrades over the course of recent months. It also has seen more people create decentralized finance (DeFi) on the platform.

CCN reached out to Tezos for commentary, but did not receive a reply at the time of publishing.

But what is Tezos (XTZ)? How does Tezos work? Let’s see what we can find out, and also take a look at some of the Tezos Price Predictions that were being made as of August 4 2023.

From the Whitepaper

In its technical documentation, or whitepaper , Tezos says that it can, in simple terms, fix itself. 

The whitepaper says: “Tezos supports meta upgrades: the protocols can evolve by amending their own code.”

Advantages and Disadvantages of Tezos 

Blockchain analytics company Messari recently released its quarterly report on Tezos . It outlined some key advantages and disadvantages of the blockchain.

It said that between April and June 2023, Tezos had

• Revenue of $22,200, down from $472,300 year-on-year and from $121,840 quarter-on-quarter.
• Total Value Locked (TVL) of $87.97 million, up year-on-year from $50.49 million but down quarter-on-quarter from $92.03 million.
• 246,810 average daily active users, down from 291,260 year-on-year and from 306,620 quarter-on-quarter.
• An average market cap of 720 million, down from $1.31 billion year-on-year and $1.03 billion quarter-on-quarter.

Advantages of Tezos

Messari said that Tezos

• Had worked well on how it carried out off-chain transactions.
• Was doing a good job in keeping its NFT space active and was growing its DeFi sector.
• Created upgrades, demonstrating that it was able to be faster and more efficient.

Disadvantages of Tezos

Messari also said that Tezos

• Was finding attracting new accounts difficult.
• Saw its revenue fall following in decrease in gas fees.
• Had suffered following broader crypto regulatory uncertainty.

With Messari’s report being broadly positive about Tezos, what does this mean about the XTZ price prediction?

First, though, let’s talk about what Tezos actually is.

Tezos (XTZ) Explained

The Tezos  blockchain was first proposed in 2014 and came online in 2017. Founded by French analyst Arthur Breitman, who wrote the whitepaper under the pseudonym LM Goodman, it was designed to work well even when traffic was high, meaning that it is, theoretically, scalable. 

The platform makes use of smart contracts, computer programs that automatically execute once certain conditions are met, to support decentralized applications (dApps). 

Tezos is supported by its own, eponymous, crypto coin, known by the ticker handle XTZ.

How Tezos Works

Tezos is a self-amending blockchain. This means that when a vote is taken to change something on the system, it is put in place automatically. This means that the system is, at least in theory, immune from hard forks, moves which basically split the blockchain and, potentially, create new cryptos as a result.

The blockchain uses a Proof-of-Stake consensus mechanism. People are selected to validate transactions and add blocks to the blockchain based on how much XTZ they hold.

The XTZ coin is used to give holders votes on the system’s future and the right to add blocks to the blockchain. It is also used to pay for fees on the network, and it can be bought, sold, and traded on exchanges. 

XTZ Price History

Let’s now take a look at some of the highlights and lowlights of the Tezos price history . While past performance should never be taken as an indicator of future results, knowing what the coin has done can help give us some very useful context when it comes to either making or interpreting a Tezos price prediction. 

Tezos started its time on the open market in the autumn of 2017, trading at around $2. Although the crypto bubble at the end of the year saw XTZ peak at $12.19 on December 17 it fell substantially in the 12 months after that, and  dropped to an all-time low of $0.3146 on 7 December 2018. The price then slowly climbed over the following two years, closing 2020 at $2.02.

Early 2021 saw crypto enter a boom period, and XTZ rose with the market, reaching a periodic high of $8.40 on 7 May. The coin dipped over the summer,  but it recovered in August and on October 4 it hit a high of $9.17. 

Tezos then fell $4.35 at the end of 2021, representing an annual increase of 115%.

2022 was not such a good year, as the crypto market went through a series of crashes. XTZ fell below the dollar in December and it closed the year at $0.7174. This meant the coin lost 83% of its value year-on-year. 

Tezos in 2030

So far, 2023 has been a little more encouraging for Tezos, but it is still a long way from where it was in 2021. A buoyant market saw it break past the dollar in January on its way to reach $1.47 on February 23.

After that, though, it was all downhill. In June, the news that the United States Securities and Exchange Commission was suing the Binance and Coinbase crypto exchanges shook the coin and the market. The market turmoil saw XTZ fall to a low of $0.6909 on June 10.

Tezos then made a recovery to $0.8902 on July 24. After that, though, it fell and it was worth about $0.81 on August 4 2023. At that time, there were 947.6 million XTZ in circulation out of a total supply of 968.7 million. This gave the coin a market cap of $768 million, making it the 53rd largest crypto by that metric. 

Tezos Price Analysis

In the last couple of months or so, the price of XTZ has fluctuated. The coin rose by more than 25% from June 15 to July 24, but has dropped nearly 10% since then. Perhaps more worryingly, though, Tezos is worth more than 11% less than the $0.9146 it was trading it before the market crashed on 5 June. 

Tezos closed June 10 at $0.714. As we will see, this price is a so-called support level, meaning that, as long as it stays above there, we should not be too worried.  

From July 10 to July 14, Tezos rose by around 45%. Since then, it has seen it fall back down. 

However, the fact that it has avoided its June 10 closing price means that we could see an upturn in the crypto’s fortunes. The Relative Strength Index (RSI) suggested that, on that day, XTZ was oversold. It did the same thing on January 1, when the price started a recovery, more than doubling by late February. 

Tezos Price Forecast 

If we go by the theory that price movements happen in five waves, it could be that we are currently at the start of a third wave of an upward trend. 

If the price manages to hold above $0.71 – preferably above $0.80 – and starts rising from there,that would confirm this. 

If so, it is possible that Tezos could climb above $3 in the near future.

Tezos Coin Price Prediction 

With that all out of the way, let’s take a look at some of the Tezos price predictions that were being made as of August 4 2023. It is important to remember that price forecasts, especially for something as potentially volatile as crypto, very often end up being wrong. Also, keep in mind that many longer-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice. 

First, CoinCodex  made a short-term Tezos price prediction that said the coin would drop to $0.8006 by August 9 before dropping to $0.7201 by September 3. The site’s technical analysis was highly bearish, with 28 indicators sending discouraging signals and just one making a bullish one. 

Tezos Forecast for 2023

When it came to other sites Tezos price predictions for 2023, DigitalCoinPrice  said the coin would trade at $1.65. CaptainAltCoin  said it would close the year at $0.9606. PricePrediction.net  said XTZ would reach $0.98 this year.

Tezos Forecast for 2025

In terms of a Tezos price prediction for 2025, PricePrediction.net said the coin would get to $2.08. DigitalCoinPrice had it at $2.80. CaptainAltCoin was extremely optimistic, saying XTZ could trade at $8.15 in two years time.

Tezos Forecast for 2030

Moving forward to a Tezos price prediction for 2030, CaptainAltCoin was, again, out in the lead. The site said that the crypto would reach $20.39. PricePrediction.net said the coin would be worth $13.68. DigitalCoinPrice had an XTZ price prediction that saw it trade at $8.34 at the start of the next decade.

Is Tezos a Good Investment?

It is hard to say. Tezos has made a small recovery over the course of 2023. However, the shadow of the disasters of 2022 is still looming over it. 

There is an argument that one should buy in the dip. With XTZ dropping about to 10% in, this could be a dip. What we don’t know, though, is how long this dip will last, nor what it could recover to.

That said, Tezos is a useful blockchain. The idea that it can change without splitting does, at least in theory, give it a certain solidity that might make it appealing to investors.  

As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in XTZ.

Will Tezos go up or down?

No one can really tell right now. While the Tezos crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up. 

Should I invest in Tezos?

Before you decide whether or not to invest in Tezos, you will have to do your own research, not only on XTZ, but on other, related, coins and tokens such as Solana (SOL) and Cardano (ADA). Either way, you will also need to make sure that you never invest more money than you can afford to lose.

FAQs 

How many Tezos are there?

On August 4 2023, there were 947.6 million XTZ in circulation out of a total supply of 968.7 million.

Will Tezos reach $10?

It might do, but not for a while yet. Both CaptainAltCoin and PricePrediction.net said it would get there by 2030, while DigitalCoinPrice had it reach that level in 2031. 

Keep in mind that, although XTZ has traded at more than $10 before, it has not done so since December 2017.

What is Tezos used for?

The XTZ token is used to reward people who add blocks to the Tezos blockchain. Holders can vote on changes to the network, and XTZ can be bought, sold, and traded on exchanges. 

Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.