What Factors Influence Tezos (XTZ) Token Price?

Cryptocurrency continues to gain more and more attention with time. The systemic worries that accompany traditional assets, including stock fiat currencies, make investors consider alternative options. With crypto becoming the main one, many people are eager to buy it. Which coin is the most lucrative investment? Hard to tell. However, if you think about purchasing some altcoins, Tezos is worth shortlisting. The token hasn’t only secured a stable position in the market but also gained the community’s trust. 

In this article, we have decided to examine its performance and share Tezos price predictions for 2021, 2022, 2023-2025, and 2030. Our forecast is based on the most recent data from different market analysts for a complete picture. 

What Is Tezos (XTZ)?

XTZ is a crypto coin that was launched back in 2017. The Initial Coin Offering (OCI) remains one of the most memorable to date: the scope of investment exceeded $232 million. Ever since then, the coin has been keeping a leading position in the market. For example, it’s considered the one of largest crypto, with a market capitalization of more than $2,5 billion as of late January 2021. 

Tezos was designed by Arthur Breitman, who criticized Bitcoin for the lack of a governance process involving the community and its participants. Some say that XTZ is rather similar to Ethereum because both blockchain networks feature smart contracts. Still, there are differences. Tezos boasts a far more advanced infrastructure. In other words, it doesn’t require a hard fork or changing the network’s protocol that makes previously invalid blocks and transactions valid. Both Bitcoin and Ethereum can’t offer the same to their users. 

This is among key reasons why Tezos can be described as secure, upgradable, and built-to-last. XTZ is an open-source platform that is said to ensure outstanding accuracy due to its smart contracts. Moreover, its staking process involves the community - people participate in governing the network by “baking”. 

Probably, due to all these, XTZ was welcomed into the world of high-profile business. For example, Societe Generale, a French bank, announced wholesale central bank digital currency trials, where Tezos outperformed other cryptocurrencies.m Those who want to find the coin don’t need to search long. It is available on all the major exchanges like Coinbase or Binance. A trader can experiment with cryptocurrency pairs, opting either for XTZ to crypto or XTZ to fiat.

What Factors Influence the XTZ Token Price?

Before you start trading Tezos, it’s vital to understand what may affect its price. You will need this data to predict the XTZ price fluctuations and make reasonable investment decisions. Of course, there are factors relevant to any crypto, like investor sentiment or overall economic situation. 

Bitcoin, being the key cryptocurrency, shapes the price of altcoins, and Tezos is no exception. When Bitcoin is in a bull trend (i.e., increasing in its value), we can hope that XTZ follows the same path. While it may lose in the XTZ/Bitcoin ratio, generally, the altcoin can still strengthen its positions. 

The best time to wait for a spike is after Bitcoin’s rise. Typically, the main crypto enters the cool-off phase, and that’s the exact moment to anticipate growth for Tezos. 

Any coin is tied to the general crypto market state. When it’s blooming, the investors may anticipate the growth of all tokens. Similarly, when a recession takes over the market, traders must be on guard to prevent significant losses. Let’s take a closer look at positive trends. Once the market is prospering, typically accompanied by Bitcoin growth, the most lucrative pairs are crypto to USD or EUR. If you manage to buy XTZ cheap, you can later sell it for fiat and potentially gain profit. The best scenario is to wait until the market stabilizes and everyone starts looking for top-performing altcoins. Luckily, Tezos is likely to be on the list.

Staking Mechanism

Although many other cryptos involve staking, Tezos has managed to secure a strong position. With a lot of exchanges introducing staking-as-a-service, its importance is likely to increase. Consequently, this drives growth for XTZ. In fact, it’s already among leaders: Binance and Coinbase consider the token the leading staking crypto. 

About Tezos Past Price Performance

Making an XTZ price prediction may be difficult without assessing the token’s past performance. It helps to identify price fluctuation patterns and analyze which factors have the biggest influence. The Tezos coin started its path with the scandal. It was launched in 2017: the ICO took place in July and was among the largest in terms of the accumulated investments. The price at the time was average: it was bouncing between $1.7 and slightly more than $2. Instead of stabilizing its position, the company had to deal with a lawsuit over ICO. There were several, in fact. All of them blamed XTZ founders for selling unregistered assets.

This, of course, affected the token price. It only had started to increase and reached the $5 benchmark in December 2017, when another complaint was filed. As a result, it dropped down to $3.9 in a couple of days. 

However, the collapse wasn’t disastrous. In fact, Tezos regained its position pretty fast and exceeded the maximum price at the beginning of January 2018: it reached $5.75. No matter how promising it may have been, 2018 happened to be a complicated year for all cryptocurrencies, with constant ups and downs. As a result, XTZ ended the year valuing only $0.5. 

What affected Tezos significantly at the time was a set of regulations. Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements were introduced in summer 2018. That became a problem for XTZ as no user data was collected during the ICO. 

After a long bearish period, the token finally started to regain its value in 2019. Three-fourth of the year (from March to December) were rather prosperous. Although all cryptocurrencies were increasing in price at the time, Tezos performed better than others: XTZ was estimated to have risen 1,000% during the year. It climbed from 22nd position up to 10th in the cryptocurrency ranking. 

The blooming phase began from the middle of the year approximately. Some analysts believe that a massive boost in liquidity and accessibility were key drivers of the growth. 

Did Tezos Keep Growing in 2020? 

Despite quite an outstanding performance in 2019, the token lost in value at the end of the year. Therefore, 2020 started on a pessimistic note. Some analysts, however, believed that Tezos was doing better than other altcoins, and the drop didn’t indicate a loss of interest from investors.

On the whole, the previous year was rather difficult for every industry, the crypto market included. So, it’s hardly surprising the XTZ was constantly switching between bearish and bullish movements. If we are to look at the price performance, we can notice several spikes. 

The value suddenly increased due to the extensive measures taken to promote the token. In particular, Tezos improved its ecosystem by adopting two new protocols. Alongside this, there were other changes. For example, it:

  • Was chosen for CBDC by French bank Societe Generale;
  • Gained two new bakers: EDF Group and Sword France;
  • Became a key token for a €100 million tokenized fund created by Logical Pictures.

XTZ almost reached its all-time high. In August 2020, the price spike exceeded $4.4. Probably, this can be tied to the fact that the three-year-long lawsuit was finally over. It ended in a $25 million settlement. The year ended with positive news. XTZ gained even a more massive adoption: Sylo started to support Tezos. The Sylo Smart Wallet boasts quite a great community of 250,000 users, which was great news for the project. 

As for the beginning of 2021, the token was experiencing constant hips. The best trend performance-wise started closer to the end of January when the spikes weren’t as drastic as before. But then, the value again dropped down to $2.88, from $3.17 on January 24, 2021. 

Short-Term Tezos XTZ Price Prediction for 2021

Despite some shortcomings, it seems that the token is close to prosperity once again. With the booming crypto market and impressive Bitcoin performance, we can say that a bright future for XTZ may not be that far away. This is especially driven by Bitcoin growth: the coin almost reached $42,000 in value at the beginning of the year. With this in mind, Tezos, as a strong altcoin, has all the chances to double or even triple in price by the end of the year. 

However, it’s still early to rely on a positive XTZ price prediction alone. Traders are on guard because of the upcoming policy framework. Recently, the Treasury Secretary nominee Janet Yellen said that cryptos can be used to finance illicit activities, including terrorism.

Nevertheless, she admitted that digital currencies could improve the efficiency of the financial system. This means that more regulations and policies are going to be introduced. As far as we know, they can both negatively and positively affect the price. Now, let’s take a closer look at Tezos price predictions for 2021. As an overall observation, the estimations predict the XTZ token price growth in 2021. But predictions differ in terms of scope. 

  • Wallet Investor: Wallet Investor is a resource that produces forecasts based on technical analysis. Typically, the predictions aren’t so bright. However, Tezos is an exception: the website believes that it may ramp up to $4.431 within a year. Moreover, the site indicates a positive direction for investments in XTZ throughout the year: the projected earning potential is as high as +51.18% in a year.
  • Digital Coin Price: Digital Coin Price has quite the same opinion about XTZ. It believes that the price is going to increase within a year, and investors should consider the token likely to be profitable. According to the XTZ price prediction, the value in USD may be up to $4.52 in a year. It means that Tezos may double from the current value. Generally, Digital Coin Price is much more optimistic than Wallet Investor. It projects that the price will exceed $4 in February and finish the year with almost the same figures. 
  • Prevision Bitcoin: This resource is the most promising. It forecasts steady growth for Tezos within the year. According to the website, at the end of the summer, it will cost $5.05, while in December - $11.68. That’s a 305% increase from the current XTZ price. Will this become true? Who knows. However, don’t have your hopes up as the majority of Tezos XTZ price predictions are much more modest. 
  • Trading Beasts: It should be noted that not everyone is optimistic. Trading Beasts, for example, projects a slight decrease. According to the data provided, the price will revolve around $2.5 on average, as shown in the table below. The maximum possible, however, is $3.24. 

Tezos Price Prediction for 2022: Will It Keep Growing? 

As for 2022, Tezos is likely to continue in a bullish trend. If the current trend of the crypto market growth will persist up to 2022, XTZ will also gain in value, at least in terms of the XTZ to fiat ratio. Potentially, it can even reach $4.89, according to Digital Coin Price. It will be the 2022 maximum that may take place in November.

However, there are more moderate forecasts. Trading Beasts, in particular, believes that XTZ won’t jump higher than $3.36 in 2022. 

What Do Forecasts Say about Tezos Price in the Long-Term: 2023-2025 

The next few years are likely to be prosperous for the XTZ token. Once again, if we are to rely on the current trends of increasing crypto adoption, as a strong altcoin, Tezos is going to bloom. We have decided to break up the long-term XTZ price prediction by year.

  • 2023 is a controversial year in terms of predictions - those differ a lot. For example, Trading Beasts predicts a drop in prices in the middle of the year - down to $2.15 in June, to be precise. Later, however, the token might regain its position and return to the $3 benchmark in December 2023. Generally, such volatility is quite normal for Tezos. Digital Coin Price also expects Tezos to enter a short period of recession. According to the prediction, the price will fluctuate. It may reach the overall maximum in August - $7.14. 
  • 2024 is supposed to be a much better year for Tezos. Both Trading Beasts and Digital Coin Price expect the coin to rise. Trading Beasts forecasts a gradual increase: XTR will finish the year with a value of almost $4 on average. Once again, Digital Coin Price is much more optimistic. Despite some drops, generally, Tezos is going to boom in 2024, with the year maximum of $8.56 in November 2024. Potentially, the price may reach even a $10 milestone. 
  • 2025 is going to be even better. That’s the year when the token is supposed to hit $10, according to Digital Coin Price. However, it won’t manage to secure too high of a price. The analysts expect that XTZ will drop down to $8 each time it reaches $9-$10. 

What Is the Tezos Price Prediction for 2030?

It’s still hard to estimate the Tezos worth after ten years from now. Yet, one thing is clear: if the token still remains on the market in 2030, it will have passed the test and will manage to mature. It means that it will have a reliable time-honored infrastructure and a pool of devoted users. 

This isn’t far-fetched, considering that XTZ developers are constantly improving the technical backup, as well as promote the token on the market. Therefore, it’s likely that the token will reach its overall maximum.

Tezos Technical Analysis 

If you want to be a professional trader, mastering technical analysis is a must. Technical analysis is a process of examining and forecasting price fluctuations based on historical data and market statistics. In other words, you will be able to make your own Tezos price prediction, relying on the available data. 

To carry out the analysis, you will need to analyze the historical price chart and apply some analysis instruments like MACD or OHLC. To interpret the chart, first, you need to learn the basic terms:

  • Uptrend – when the XTZ price is growing;
  • Downtrend – when the XTZ price is decreasing;
  • Sideways trend – when XTZ price is stable or move horizontally on the chart;
  • Resistance (abundance of sellers) – happens during an uptrend and indicates the level when it can rebound or pause;
  • Support (abundance of buyers) – happens during a downtrend and indicates the level when it can rebound or pause.

These indicators are necessary to describe the past price performance and identify price movement patterns. Afterward, they can be applied to predict future XTZ behavior.

What Do Experts Say About Tezos Price in the Long-Term? 

Although Tezos has already gained a significant position in the crypto market, it has already been criticized. Predominantly, of course, the critics focused on the lawsuits. Some community experts also don’t approve of the governance philosophy. In particular, Vitalik Buterin, Ethereum founder, often disagreed with the implemented policies. 

Nonetheless, experts can’t deny the benefits of the token and the technology behind it. Even Buterin admitted that it was a “well-thought-out” tech and hoped it would do well. Such a positive market sentiment is a reason to believe in an optimistic Tezos price prediction.

What to Do with Tezos - Do I Trade or Invest?

Generally, Tezos is a rather stable altcoin that may be suitable for an investor in the long-term. Such a scenario will take place if the market keeps prospering. However, one shouldn’t eliminate the possibilities that can undermine their investment strategy and lead to financial collapse. 

With this in mind, the safest option at the moment is trading. Since the overall XTZ price prediction is positive and the coin is likely to gain in value, trading is going to be profitable as long as you manage to navigate the bullish and bearish trends. But please note that trading CFDs with leverage can be risky and can lead to lose all the invested capital. If you want to be extra secure and confident, open a risk-free Libertex demo account. This will help you learn about the market in a safe environment.

Why to trade with Libertex?

  • access to a demo account free of charge
  • technical assistance to the operator 5 days a week, from 8 a.m. till 8 p.m. (Central European Standard Time)
  • leverage of up to 1:600 for professional сlients
  • operate on a platform for any device: Libertex and Metatrader

FAQ 


Is Tezos a Good Investment in 2021?

Yes, the coin is considered to be a good investment in 2021. The coin is likely to increase in value: the majority of analysts forecast a bullish trend for XTZ. 

Is Tezos Worth Buying?

Yes, the token is worth buying. According to XTZ price predictions, it’s going to increase in the upcoming years.

Does Tezos Have a Future?

Yes, Tezos has a future. No market analysts currently predict the collapse of the crypto. On the contrary, it’s strengthening its positions.

What Will Tezos Be Worth in 2030?

Currently, there are precise estimations about Tezos price in 2030. However, if it manages to survive till then, the price may even hit $100. 

Is Tezos Volatile?

Price fluctuations are normal for Tezos. The last year alone showed that this coin could experience sharp movements, doubling and tripling in price and then dropping down. Based on these facts, we can expect the same level of volatility in the future as well. 

Source   Presented by LibertexForex Columns
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