Tezos 2023 Outlook: An Overview of Tezos (XTZ)

Tezos enjoyed a prosperous 2021 but witnessed a challenging 2022, witnessing an overwhelming 80% drop in value. The trajectory has shown improvement in 2023, though some recent setbacks have been observed. Trading activity suddenly surged on October 10, sparking discussions about significant investors, known as “whales”, purchasing XTZ. So with attention all pointed at Tezos again, does it now have the oomph to take centre stage behind Ethereum?

Recently, Tezos has rolled out numerous updates and has observed an uptick in users developing decentralized finance (DeFi) solutions on its network. With this in mind, let’s delve deeper into its workings, and also explore some Tezos price forecasts as of October 2023.

Tezos Valuation Forecasts

It’s essential to highlight Tezos price projections. Always keep in mind, predictions, particularly in the unpredictable world of crypto, can deviate from reality but some platforms do manage to gist out very possible scenarios. For instance, Gate.io’s XTZ price prediction outlines a continuous mellow growth of the price, which fully correlates with many other long-range cryptocurrency forecasts that leverage algorithms and market data.

Pros and Cons of Tezos

Messari, a blockchain analytics firm, shared its quarterly insights on Tezos, spotlighting its strengths and weaknesses. The report highlighted:

  • Revenue at $22,200, a drop from the previous year’s $472,300 and down from the last quarter’s $121,840.
  • Total Value Locked (TVL) stood at $87.97 million, a rise from the previous year’s $50.49 million, but a decline from the preceding quarter’s $92.03 million.
  • Average daily users numbered 246,810, a decrease from the previous year and quarter.
  • A market cap averaging $720 million, down from the previous year and quarter.

Tezos Strengths:

  • Excellently handled off-chain transactions.
  • Maintained an active NFT domain and expanded its DeFi arena.
  • Introduced innovations to enhance speed and efficiency.

Tezos Weaknesses:

  • Struggled to entice new users.
  • Saw revenue reduction due to declining gas charges.
  • Faced challenges amidst broader cryptocurrency regulatory changes.
  • Considering Messari’s mostly positive view, what implications does this have for XTZ’s price future?

XTZ Historical Price Journey

A brief look at Tezos’ price journey provides essential context for future predictions. Launching in late 2017, Tezos began trading approximately at $2. The crypto surge at year-end propelled XTZ to $12.19 on December 17, only to plummet, hitting a record low of $0.3146 by December 7, 2018. The next two years saw a steady rise, concluding 2020 at $2.02.

2021 started promisingly for crypto, with XTZ peaking at $8.40 on May 7. Despite some dips, it rebounded to $9.17 by October 4. However, 2021 concluded with Tezos at $4.35, a 115% annual surge.

2022 wasn’t as favorable, marked by several crypto crashes. The year closed with XTZ at a mere $0.7174, reflecting an 83% annual drop.

The initial phase of 2023 appeared promising for Tezos, though it hasn’t yet reached its 2021 glory. A brief surge was followed by a decline upon news of a lawsuit against major crypto exchanges. As of October 10, XTZ price hovers at about $0.701, which is quite a discount, compared to the token’s past glory.

Tezos Price Evaluation

After peaking near $9 in October 2021, XTZ witnessed a decline of over 90% by early September 2023. Given the current trend and indicators like the Relative Strength Index (RSI), a breakout seems unlikely. Should this trajectory continue, a dip to $0.50 could be anticipated. A leap beyond $0.87 would signal a bull trend. So is investing in Tezos wise?

It’s challenging to determine. Tezos has shown some recovery in 2023, but the setbacks of 2022 still cast a shadow. Some advocate buying during a dip. But uncertainties remain regarding the dip’s duration and potential recovery. Tezos’ unique feature, its ability to evolve without splitting, offers a theoretical stability that might attract investors. As with all cryptocurrencies, thorough research is paramount before considering an investment in XTZ.

Tezos’ Future: Rise or Decline?

Predictions mostly favour Tezos, but it’s essential to remember that these can often be inaccurate. Cryptocurrency prices are volatile, capable of both ascents and descents. Research is crucial before any investment. Investigate not only XTZ but other relevant cryptocurrencies like Solana (SOL) and Cardano (ADA). Always invest what you’re prepared to lose.

Proposed in 2014 and launched in 2017, the Tezos blockchain was engineered for efficiency even under high traffic, ensuring scalability. Arthur Breitman, a French analyst, penned the Tezos whitepaper under the pseudonym LM Goodman in 2014. His career includes stints at tech and finance giants like Google, Waymo, Goldman Sachs, and Morgan Stanley.

The network harnesses smart contracts to bolster decentralized apps (dApps) and is powered by its cryptocurrency, represented as XTZ. Tezos boasts a self-evolving blockchain, where system changes occur post-vote without manual intervention. This eliminates hard forks, preventing potential crypto fragmentation. Its Proof-of-Stake consensus mechanism chooses validators based on their XTZ holdings. Last but not least, the token plays a multi-faceted role, from shaping the blockchain’s future, aiding in block validation, and covering network fees, to being traded on exchanges.

One of the greatest gauges of Tezos is that it is still live and active, whilst many other blockchains have failed over and over again. This, gives investors the hope, that one day XTZ will once again be the centre of the blockchain world, with utility cases that go far beyond transactions and internal workings. 

Author

  • Linda

    Skilled Web3 analyst with a focus on the functional and ethical dimensions of decentralized networks.