The Tezos (XTZ) cryptocurrency made strong gains towards the end of 2021, in response to a network upgrade and news of prominent partnerships with the likes of gaming publisher Ubisoft and non-fungible token (NFT) marketplace Rarible.
XTZ gained 115% last year but increased volatility on the cryptocurrency markets has the coin under pressure at the start of 2022, trading down by as much as 12%.
What is Tezos and how do forecasts predict the price could move over the long term? In this article, we look at the latest Tezos news and price predictions.
All things Tezos: What you need to know about the project
“This is important as the suggestion or expectation of a fork can divide the community, alter stakeholder incentives, and disrupt the network effects that are formed over time. Because of self-amendment, coordination and execution costs for protocol upgrades are reduced and future innovations can be seamlessly implemented.”
The blockchain uses a Proof-of-Stake (PoS) consensus mechanism and its native tezos cryptocurrency is used to process transactions.
Tezos was developed by Dynamic Ledger Solutions, a US-based startup that was co-founded by Kathleen and Arthur Breitman in 2014. Dubbed the first couple of blockchain, Arthur is a former vice president for Morgan Stanley and was previously a portfolio manager at White Bay Group. The Switzerland-based Tezos Foundation supports the development of the ecosystem.
In September, Tezos announced its eighth protocol upgrade, called Hangzhou, following August’s Granada upgrade. Hangzhou was jointly developed by Marigold, DaiLambda, Nomadic Labs, Tarides and Oxhead Alpha, according to the announcement. The upgrade went live on 4 December and prepared the network for a planned consensus upgrade, Tenderbake, in 2022 and introduced new technical tools and patches. The test network for Tenderbake went live in November.
The ninth protocol upgrade proposal, Ithaca, was released on 20 December. The upgrade will implement Tenderbake, enable the prechecking of operations and extend its liquidity subsidy. “Over the course of the coming months, our teams also intend to continue to develop and propose amendments to increase performance, lower gas consumption, reduce block times, and increase the overall Tezos network’s throughput,” the statement from Nomadic Labs said.
Tezos is gaining popularity as a low-cost and energy-efficient platform for NFTs. Some of its recent NFT projects include:
On 24 October, McLaren launched its Racing Collective NFT platform on Tezos, where collectors can buy NFTs of car parts to complete a car and win prizes
On 5 November, Red Bull Racing launched its first NFT collection on Tezos
On 26 October, Adobe said that its Behance social media platform, where content creators showcase their work, would move into the NFT space and connect with multiple blockchains, including Polygon, Solana, Flow and Tezos
On 1 November, The Recording Academy announced a partnership with Tezos-based NFT marketplace OneOf, which is backed by musician Quincy Jones, to release NFTs that will commemorate the 64th, 65th and 66th Grammy Awards
On 28 October, NFT marketplace Rarible announced the integration of its protocol with the Tezos blockchain, which went live in December. Tezos is the third blockchain integrated with Rarible, following Ethereum and Flow
On 7 December, gaming company Ubisoft announced its first in-game NFTs built on Tezos
On 9 December, Pantone revealed its collaboration with Tezos for its Color of the Year digital art initiative.
DappRadar, which tracks data on the use of decentralised applications including NFTs and decentralised finance (DeFi), noted on 5 January that the number of active wallets on Tezos apps was surging, although it remains well below the level of blockchains like Ethereum and Binance.
The use of the Tezos blockchain is also rising in financial services. On 15 December, digital asset firm Taurus said it has fully integrated support for Tezos smart contracts into its platform, enabling banks and issuers to issue and manage tokenised assets on the Tezos blockchain in a fully automated way. And on 20 December, payment provider LucidPay said it plans to launch a stablecoin on the Tezos blockchain for the hospitality industry.
Tezos price declines after October spike
The initial coin offering (ICO) for the Tezos crypto launched in 2017 and the mainnet went live in 2018. The coin benefitted from the rally in cryptocurrency prices in late 2017, quickly rallying from $1.66 in early October to its all-time high of $12.19 on 17 December 2017. But the price had fallen to $1.76 by 6 February 2018. A rebound brought XTZ back up to $5.97 on 2 June, but it subsequently fell back again to end 2018 at $0.4626.
The XTZ price remained below $2 until February 2020 and reached $3.92 on 19 February, then spiking to $4.48 on 13 August before ending the year at $2.02. The price then rallied early in 2021 in line with the broader cryptocurrency markets, reaching $8.40 on 7 May before the market selloff brought the price back down to $2.11 on 20 July when prices bottomed out.
The price rose again over the summer and into the autumn as the markets trended higher, climbing to $9.18 on 4 October in response to news of the Hangzhou upgrade. The price fell to $4.31 in late November and moved up to $6.16 in early December following news of the Ubisoft and Rarible integrations. But XTZ has since been in a downward trend, ending 2021 at $4.35. So far in January it has continued to trade around the $4 level.
What is the outlook for the XTZ price in 2022 and the coming years? Let’s look at some of the latest predictions.
Tezos price prediction: How will the coin perform in the future?
The short-term outlook for the XTZ coin was bearish at the time of writing on 13 January, according to technical analysis from CoinCodex. There were 12 indicators giving bearish signals and 16 bullish signals. In the meantime, CoinCodex predicted that the Tezos value could reach $4.74 by 18 January.
The Tezos (XTZ) price prediction from WalletInvestor was bullish for the long term, estimating that the coin could reach $5.996 by the end of the year and $8.018 by the end of 2023. The algorithm-based forecasting site predicted that the price could approach the previous all-time high and reach $12.016 by the end of 2025.
The Tezos coin price prediction from DigitalCoin projected that XTZ could trend higher from an average of $5.85 in 2022 to $7.09 in 2023. Based on historical data, it expected the price to average $9.63 by 2025 and $18.52 by 2029, trading up to a high of $19.44.
The Tezos (XTZ/USD) forecast from PricePrediction was the most bullish, projecting that the price could climb from an average of $6 in 2022 to $8.81 in 2023, $19.33 in 2025 and $130.13 in 2030.
It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
We recommend that you always do your own research, and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. And never invest more than you can afford to lose.
At the time of writing, some forecasts predicted that the XTZ price could trend higher in the future. But it is important to keep in mind that cryptocurrency prices are highly volatile and difficult to predict. Forecasters can and do get their predictions wrong. You should do your own research to make informed trading decisions. Keep in mind that past performance is no guarantee of future returns.
Cryptocurrencies are highly volatile assets, making them high-risk investments. Whether XTZ is a suitable fit for your investment portfolio depends on your personal circumstances and risk tolerance. You should evaluate the level of risk you are prepared to accept before investing and never invest money that you cannot afford to lose.
Read more: NEXO price prediction: Where next in 2022?
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.