The market-wide bull runs in May and November last year affected even the most dormant cryptocurrencies. As Bitcoin and altcoins like Ethereum surged to hit surprising all-time-highs, smaller less-known coins were too struggling to break out of their shells.
One of them was Tezos.
Launched in 2017, Tezos has grown steadily and is now among the fastest-growing cryptocurrencies. However, this new coin did not exactly emulate the uptrend trajectory that defined the growth of most cryptocurrencies in late 2020 and 2021.
At the start of 2020, Tezos was trading slightly above the $1 mark. It grew and touched above $4 in August before going through one of the most devastating plummets. As other cryptocurrencies were finally beginning to look up, Tezos crashed and bottomed out at $1.79 on Christmas eve 2020.
This was about the same time that Bitcoin and Ethereum started their steepest uptrends that saw them achieve new records at the start of 2021. As these two and other cryptocurrencies were breaking records, Tezos was recovering from a crash. However, the recovery didn’t take long and soon, Tezos joined the universal bull run in the crypto market and skyrocketed to above the $5 mark by February 2021.
Even as Bitcoin and Ethereum had captured much of the investor’s attention by their parabolic rise, Tezos, like other smaller coins, managed to steal some for itself. Now it is one of the most promising cryptocurrencies, with its price and market cap growing steadily.
In this guide, we will be looking at some of the Tezos price predictions to try and gauge its future position in the market. But before we dive into the nitty-gritty, let’s familiarize ourselves with this new ‘Ethereum Killer’.
What Is Tezos (XTZ)?
Yes, Tezos, just like Cardano, is now calling itself the ‘Ethereum Killer’. With Bitcoin hitting an all-time high of over $68K, it has become impossible to compete with it. Now, emerging cryptocurrencies are targeting the ‘weaker’ Ethereum and fighting hard to dethrone it from the coveted second position.
But why does Tezos think it is a better Ethereum alternative?
When Ethereum strayed away from the path that Bitcoin had paved and created a different cryptocurrency, other new coins followed suit. One of those is Teszos. Just like Ethereum, it uses smart contracts technology and doesn’t like Bitcoin.
However, Tezos adopted a slightly different infrastructure that is perhaps responsible for a big chunk of the attention it is now getting: community on-chain governance.
What is community governance? This is where Tezos stakeholders participate in network governance which includes deciding whether an update should be made or not.
Here is how this works:
Other cryptocurrencies like Bitcoin and Ethereum do what is known as hard fork updates. This is where a radical change is made to the blockchain protocol to validate blocks and transactions that were previously invalid or vice versa. When this is done, all users are required to upgrade to the updated protocol.
However, Tezos does this differently. Instead of hard forking, XTZ stakeholders (known as bakers) can vote on whether a change should be made or not. Every user has the same number of votes as the XTZ they hold.
This uniqueness, in combination with the smart contracts technology, makes Tezos’ infrastructure more superior to that of Ethereum. That is why the coin has grown rapidly and is now widely accepted by investors and financial institutions.
When it was launched, XTZ had one of the most memorable Initial Coin Offerings (ICO). It raised more than $232 million in investment and is now listed in major exchanges. The coin, which now has a market cap of $3.62B outperformed other cryptocurrencies in a digital currency trial done by the French bank Societe Generale.
Now, let’s look at how the coin is faring so far.
Tezos in 2022: Everything You Should Know
Like we mentioned earlier, Tezos didn’t start 2021 on a parabolic note like the other cryptocurrencies. It crashed in Mid-2020 and didn’t recover until February last year. However, 2021was promising for the ‘Ethereum Killer’.
Tezos is now the 44th largest cryptocurrency by market cap, according to data from CoinMarketCap. So, clearly, it has a long way to go this year before it can join the ranks of the most talked-about cryptocurrencies right now. However, it is already making some good strides and might be able to give Ethereum a run for its money in a few years.
For instance, Tezos is already inspiring the creation of new coins based on its technology. Just this month, French firm Lugh.io joined with Coinhouse and Societe Generale Bank to create a euro-backed stablecoin known as Lugh (EUR-L).
Although it recently had a crash, the price has since looked up, and now the crypto is on a mission to carve out space for itself in the financial market. To do this, Tezos is addressing some of the most common barriers to blockchain adoption. These include:
- Community participation
- Smart contracts
- Delegated proof-of-stake
- Long-term upgradability
- Digital currency safety
The crypto capitalizes on a modular architecture with an upgrade mechanism that allows it to seamlessly absorb emerging technological innovations. By giving its stakeholders the ability to propose, approve and evaluate amendments to network upgrades, Tezos sets itself apart in an industry where new coins are merely mimicking the technologies of existing ones.
The creators hope that Tezos’ on-chain governance will enable for a faster consensus, binding code modifications, transparency, decentralized decision making, and fewer cases of malicious hard forks.
But how far has Tezos come to achieve its current milestones? Let’s look at the price history.
Tezos Price History
While predicting the prices of cryptocurrencies in the future may not be easy, we can still get a close number by looking at the price history. Like most digital currencies, XTZ has had a bumpy past that is shrouded by price volatilities and frequent crashes. By looking at these past price fluctuation patterns, we can deduce what informed it and learn from these trends.
Just a few months after its big ICO in 2017, Tezos ran deep into a scandal that almost wiped it off the cryptocurrency market. This came after the company was slapped with several law-suits over its ICO. At the time, the price was playing between $1.5 and slightly above $2.
The founders of Tezos had apparently sold unregistered assets to its investors, which was a grim financial crime. These lawsuits had a bad effect on the token price and kept it from growing properly.
In December 2017, just when Tezos was tasting the $5 mark, it was issued with another lawsuit that saw the price drop to $3.9 in a few days.
Of course, this wasn’t a serious drop, and Tezos quickly recovered. In January 2018, the digital asset touched its current all-time-high price of $5.7. In the eyes of investors and traders, this was a good sign. Tezos was definitely having its biggest price momentum in 2018.
This turned out to be the opposite as 2018 brought a massive market-wide crash that saw most cryptocurrencies collapsing. As a result, XTZ plummeted from its coveted high price and closed the year at $0.5. This disastrous crash was brought about in a big part by a set of regulations that again tapped on Tezos’ flawed ICO to bring it to its knees.
These regulations include the Anti-Money Laundering and Know Your Customer regulations which were introduced in 2018. Since Tezos didn't collect any user data during its ICO, these regulations adversely affected its price.
This marked the beginning of a long bear market that only turned bullish in March 2019. Like it was the case with most other cryptocurrencies, XTZ’s bull run continued until December 2019. And even though this was an overall ripe period for the crypto market, XTZ showed significant growth that saw it increase 1,000% and surpassed most of the coins that were already ahead of it.
It quickly rose from the 22nd position to close the top 10 list at the end of 2019. Experts believe that this growth was fueled by improved accessibility and a significant boost in liquidity.
At the end of 2019, however, Tezos’s price dropped and started 2020 on a bearish note. However, this was not an indication of investor disinterest. The drop in prices affected the entire crypto market, and XTZ was doing well compared to the other coins.
This time, Tezos didn’t wait for the price to recover on its own. Instead, it implemented some measures to make the coin more desirable to investors. In particular, the following actions helped XTZ recover its price:
- Adopting two new protocols to improve its ecosystem
- Adding two new bakers to its pool of stakeholders (Sword France and EDF Group).
- Being chosen for the Central Bank Digital Currency by Societe Generale
- Becoming the main token for a €100 million tokenized fund developed by the content financing firm, Logical Pictures.
As a result of these promotions, XTZ regained its price again and surpassed $4.4 in August 2020. This spike came just after Tezos completed its three-year lawsuit that ended in a $25 million settlement. So, the cryptocurrency ended 2020 much better than it had started.
It saw more adoption and support, including integration into the Sylo Smart Wallet. This momentum continued into 2021. Apart from some small drops towards the end of January, XTZ stabilized above the $3 mark. Tezos dropped in the summer months only to recover in September and hit a high price of $9.18 on October 4th 2021. XTZ ended the last day of 2021 with a closing price of $4.35.
Tezos Price Predictions in 2022 - 2023
There is a possibility that Tezos will continue in a bullish trend from 2021 to 2022. That is if the current momentum in the cryptocurrency market holds up to 2021. According to Digital Coin Price, XTZ’s current uptrend may take it to about $3.87 in 2022 and then $5.04 by 2023.
On the other hand, Longforecast.com projects that Tezos will begin 2022 on the $5 mark, then start to drop and remain around $1.80-$1.90 for the rest of the year.
In 2023 Longforecast.com predicts a rise in XTZ's price and has the coin reaching a yearly high of $2.55 as early as February 2023. From then the site predicts a slight decline until November when Tezos' price will rise to $2.46 and drop again the next month to end the year trading at $2.30.
Wallet Investor gives the most optimistic forecast out of the three. The site predicts that Tezos will end 2022 trading for $7.13, reach $8 by April 2023 and end that year well above $9, at $9.56.
Tezos Price Predictions for 2024 to 2025 and Beyond
It is clear that for the next 4 years, Tezos will be trading at a price much higher than it is today. Judging by the current trends and the increasing adoption of blockchain technology, most digital assets will find a place for themselves in the financial market.
If you invest now, you could reap big in the next four years if you are patient enough to HODL for that long. Or maybe not.
Let’s look at what price analysts are saying.
According to Longforecast.com, Tezos' price at the beginning of 2024 will be the lowest, $2.40, for the whole year, after January the coin's price will begin to slowly rise to reach $3.56 by the end of 2024. Tezos will begin 2025 close to the $4 mark, at $3.97, but then the price will go in a downward direction and trade around the $3.03 mark for the majority of the year.
Wallet Investor has a slightly diverse prediction. According to data from the site, XTZ will start 2024 at $9.57, then start February at $9.87 again before ending at $10.80. The site predicts that March will be mostly between $10.7 and $10.8, with the coin finally touching the $11 mark in April.
The price will then bounce between $10 and $11 during the summer, finally reaching $12 in mid-September. The site predicts an ending price for 2024 at $12.33.
According to Wallet Investor, Tezos will touch the $13 mark for the first time in February 2025 and continue above this mark until mid-April. In mid-May 2025, Wallet Investor predicts that Tezos will surpass $15. It will then stabilize above this point and trade around $14-$15 and end 2025 with the price of $15.76.
What Factors Influence the Price of XTZ Token?
Although XTZ prices are usually volatile and unpredictable, there are a few factors that can directly or indirectly manipulate its price. These include:
- The price of Bitcoin
- Movement of the crypto market
- Staking mechanism
Let’s look at each of these factors below:
Price of Bitcoin
Although there are now hundreds of cryptocurrencies, most do not have any effect on price movement. Bitcoin, on the other hand, is so massive that it now shapes the prices of altcoins, including Tezos.
This means that if Bitcoin goes on a bull run like it is doing right now, there is a big probability that XTZ will also follow suit. So, if you are trading, you will also need to watch the Bitcoin price since it can give a good signal as to whether the XTZ price will rise or fall.
State of the Crypto Market
Sometimes, there are events that affect the entire crypto market. For instance, when the Coronavirus peaked last year, there was a dismal growth in the whole crypto market. On one hand, when the market is booming and investors are actively buying, the prices of all coins, including XTZ, will rise.
Likewise, when there is a recession shrouding the market, there might be significant crashes across the board. In this case, you will need to wait until the market is stable before you trade XTZ.
Tezos is, no doubt, a leader when it comes to staking. As many cryptocurrency exchanges adopt the staking-as-a-service mechanism, it will become more important and consequently boost the value of XTZ.
Already, major exchanges such as Coinbase and Binance consider Tezos the leading staking digital asset. This will drive its price higher as other exchanges introduce this service.
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Conclusion - Will Tezos Price Rise?
The price of Tezos is already on the rise. It is just a matter of time before it hits another all-time high. Compared to where it was two years ago, it is clear that XTZ has had significant growth and is poised for a promising future.
As we have seen in the predictions above, Tezos will be touching $10 and above soon enough. So if you want to invest or trade but are still unsure whether it’s the right thing for you, this guide will hopefully change your mind.
Looking at the price history, it is evident that Tezos is a stable altcoin. This makes it a good option if you are looking to invest in the long-term. Assuming the market keeps up with the current uptrend for the next few years, you can gain in a big way if you invest now.
However, do not forget that Tezos is still volatile, and the price can move against expectations. If you are risk-averse and not willing to put your money in a long-term investment, there is also the option to trade. While it is less risky compared to long-term investment, there are also some risks involved, especially when you trade CFDs with leverage.
Whether you choose to trade or invest in the long-term, always ensure to do market research and understand what you are getting into. If you don’t want to do all the learning and research yourself, you can enlist the services of an expert to trade and invest on your behalf or at least guide you through the process.
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