Bitcoin (BTC) and Ethereum (ETH) have dominated the crypto market for several years. Besides being the most traded cryptocurrency, Bitcoin is the most valuable digital coin by market capitalization. Ethereum occupies the second position in these categories. Moreover, Ethereum has been widely used for executing smart contracts.
But other blockchain platforms and cryptocurrencies have emerged. That’s the case with Tezos, a decentralized open-source blockchain positioning itself as a serious competitor to Ethereum. Its native digital token, XTZ, had an excellent performance in 2021. But the XTZ price plummeted during the crypto winter of 2022. What can investors expect for 2023 and the next few years? Let us discuss it in the following Tezos price prediction.
Tezos (XTZ): Overview
Tezos is a decentralized open-source blockchain. Its services are somehow similar to those Ethereum offers. It supports peer-to-peer (P2P) transactions as well as smart contracts. The native token of this blockchain trades with the symbol XTZ. This token plays an important role in the Tezos network since it is used for payments and governance. Because of multiple circumstances, Tezos has become a serious competitor to Ethereum.
One of the most remarkable features of the Tezos network is its on-chain governance model. This model allows the XTZ holders of the community to vote on any upgrade to the network protocol. Users of the network and developers are encouraged to submit proposals on upgrades they consider necessary. They can send invoices attached to their proposals. If a proposal is approved, the user who submitted it gets XTZ tokens.
The on-chain governance model prevents hard forks, which would divide the Tezos community. Moreover, in this way, the network decentralizes its maintenance and development. Tezos aims at building blockchain technology that will outperform the current leaders: Bitcoin and Ethereum. It has created a consensus mechanism named Liquid Proof of Stake (LPoS), which is less energy-demanding.
Tezos Current Market Status
As of January 17, 2023, XTZ trades at around $1 per token. With a current circulating supply exceeding 923.6 million XTZ tokens, the market capitalization of Tezos is nearly $945 million. According to CoinMarketCap, Tezos ranks #48 in the most valuable cryptocurrencies by market capitalization.
Tezos Price Analysis
Tezos held an initial coin offering (ICO) in July 2017. It raised the equivalent of $232 million in BTC and ETH coins, making it one of the most successful ICOs ever held. At the time, each XTZ token was sold for $0.47. However, because of lawsuits involving Tezos, initial investors could not collect their XTZ tokens for several months.
Despite these legal problems, the XTZ price soared to over $2 by October 2017. It skyrocketed to $12.2 on December 17, 2017. However, the price quickly dropped, and XTZ traded at 4.2 by the end of 2017. This token’s price fluctuated between $2.5 and $5 in the first half of 2018. The XTZ price dropped significantly in the second half, setting its all-time low on December 7 at $0.3146. It ended the year at little less than $0.5.
2019 showed some signs of recovery, but the XTZ remained below the $2 mark throughout the year. In 2020, the XTZ price increased progressively, reaching $4.4 on August 11. But the price dropped again, ultimately ending the year at $2.
It all changed for the better in 2021. The XTZ price started to climb in the first days of January, reaching $7.5 on May 5. However, it fell over the next three months, bottoming at $2.1 on July 20. Nevertheless, the best was yet to come. The XTZ price set its all-time high on October 4, 2021, at $9.18. After this impressive price hike, a downtrend ensued. Ultimately, Tezos ended 2021 at $4.7.
In the first days of 2022, the XTZ price dropped, reaching $2.9 on January 26. In the first half of February, XTZ seemed to be regaining value, reaching $4.4 on February 8. However, this token’s price dropped again, ending 2022 at $0.7. In the first days of 2023, the XTZ price slightly increased. As of January 17, 2023, this token's traded at around $1.
Evolution of Tezos
Arthur and Kathleen Breitman, a married couple, conceived the idea of Tezos in 2014. Arthur wrote the white paper describing the technical details of this blockchain. In 2017, the Tezos Foundation was created to support the project. This non-profit foundation based in Switzerland raised $232 million in a successful initial coin offering (ICO). Officially, the Tezos platform was launched on July 1, 2018.
The two years after Tezos' launch were uneventful. However, its native token appreciated significantly in 2021. Partly, it resulted from a surge in the number of transactions on the Tezos network. In January 2021, there were 10,000 transactions on the network daily. This number soared to 50,000 transactions per day at the end of that year. Likewise, the number of active smart contract addresses went from 200,000 at the beginning of 2021 to more than 600,000 a year later.
This rapid growth was driven by the increasing demand for non-fungible tokens (NFTs). The high network fees currently charged by the Ethereum platform contributed somehow. Users of NFT platforms have looked for more affordable alternatives to execute smart contracts. Tezos has been the ideal solution for many. Most experts expect this trend to continue in the next few years, which will likely prompt a rapid appreciation of the XTZ token.
Tezos Price Predictions by Experts
Now, let us review some of the most prominent predictions for the future price of the XTZ token.
XTZ Price Prediction 2025
CoinPriceForecast predicts bullish behavior for the XTZ price. Accordingly, this token will trade at $6.9 by the middle of 2025 and $7.7 by the end of the year. CryptoNewsZ expects XTZ to reach $3.5 in 2025. These forecasts are conservative. Other experts are significantly more optimistic about the future of this token.
XTZ Price Prediction 2030
Long-term predictions for the XTZ price differ significantly. CoinPriceForecast expects XTZ to trade at $11.8 by the middle of 2030. Accordingly, this token would reach a price of $12.4 by the end of that year. However, Trading Education forecast a maximum XTZ price of $168.68 in 2030. Although this price forecast seems very over-optimistic, other price predictions support it. For example, experts with Coin Quora believe XTZ will cross the $100 mark as early as 2026.
FAQ
Why Do People Trust XTZ?
Tezos stands out as a unique blockchain. Users do not have privacy issues on this network because of its superior technical characteristics. Moreover, it has emerged as a solid competitor in the smart contract arena. So, if you choose to invest in this digital token, you can purchase it on LetsExchange.io. Our platform allows you to swap more than 4,000 coins and tokens without hassle. No registration is needed.
Why Is Tezos Rising?
The high demand for NFTs has increased the number of transactions and smart contracts executed on the Tezos network. As a result, the XTZ price rose considerably. Moreover, Tezos offer several possibilities to make money besides investment and trading. It allows offering crypto loans, earning interest from savings, and more.
How Does the Tezos Team Check Fraudulent or Dubious Transactions?
Tezos has implemented a system that monitors all transactions regularly. Moreover, miners ensure double-spend does not occur on the network.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.
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