Tezos Trading Predictions For 2022 Onwards

Last Updated February 1st 2022
8 Min Read

Tezos is a unique cryptocurrency. It is an older cryptocurrency that has been given a new lease of life in 2021. This has made it one to watch as investors are considering Tezos as a possible investment opportunity for 2022. The Tezos system has a longstanding base for its system but has been re-energized in the last year, giving it new opportunities to change its position in the market in 2022.

Tezos was set up in 2014 by the Breitmans, a married couple from the US who met through their jobs in the finance sector. Initially, it was Arthur Breitman who had the initial idea for Tezos. The couple then decided to move the enterprise to Switzerland, setting up the Tezos Foundation in 2017 to support their up-and-coming cryptocurrency.

The basic components of Tezos are typical of the cryptocurrency market. It uses open-source blockchain technology to support the native coin Tez, which uses the coin symbol XTZ. The initial coin offering occurred before the native coin had hit the market and raised Bitcoin and Ethereum instead. Despite this unusual setup, the Breitmans’ initial coin offering managed to raise an impressive $232M.

Having had an impressive start, maintaining a competitive position in the early cryptocurrency market, Tezos was looking increasingly promising as an investment opportunity. By the time Tezos launched its testnet phase and then its mainnet in 2018, the cryptocurrency was building itself up on careful foundations, taking more time to develop than many competitors.

Tezos was certainly not rushed to market, but by the summer of 2021 Tezos had built up substantial user traffic and had hit node operator numbers upwards of 400. This gave substantial power for validating transactions using Tezos.

Now that the Tezos system has been fully operational for a few years, it is starting to make real waves in the cryptocurrency market. This has led to increased investor interest in Tezos in 2022. There are many cryptocurrency users who are anticipating Tezos to be a big investment opportunity for 2022 and 2023.

How Tezos Works

The Tezos blockchain platform is set up to complete peer-to-peer transactions. It uses smart contract functionality to process these transactions, creating a ledger of all transactions along the blockchain.

The security for these transactions, made using the native coin XTZ, comes through their proof-of-stake (PoS) system. This is frequently used by newer cryptocurrencies and is a deviation from the original proof-of-work (PoW) system used by coins such as Bitcoin. PoS is generally considered to be a faster and more energy official mode of securing blockchain transactions.

The PoS protocol that Tezos uses maintains the liquidity of the system. The nodes are operated by users who want to validate other transactions, making them peer-to-peer transactions. These node operators are referred to as bakers on the Tezos system and are rewarded for their services with new XTZ coins after verifying a transaction.

To further secure the smart contracts created through making transactions using Tezos, Michelson allows for extra cryptography. Michelson is a domain-specific language designed specifically for the purpose of verifying blockchain transactions.

Read Also: What Is Tezos (XTZ) And Is It Worth Investing In It?

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Tezos: No Hard Forks

Many of the earlier blockchains created around the 2014 period that Tezos started building use have been subject to hard forks. These hard forks which split the blockchain have caused confusion for users and investors over which of the two chains to support after the split. Tezos has tried to learn from these issues and has developed an updateable model which allows for amendments to be made when problems arise.

This means that where disagreements over changes to systems have caused splits in other blockchain cryptocurrencies, Tezos avoids hard forks completely. Instead, Tezos takes a vote from its users and the consensus of the vote determines how the system will be upgraded.

Investors in particular are impressed by this self-amendment system as it provides consistency after the XTZ is purchased and makes selling less complicated. It also allows Tezos to become increasingly decentralized over time and therefore become a larger player in the decentralized finance (Defi) market.

The PoS allows Tezos to achieve these consensus mechanisms within their on-chain governance system. This gives the Tezos user community more power over their Tezos coins and is one of the many reasons investors are looking to add XTZ to their portfolios in 2022.


Trading XTZ To USD

XTZ price chart

The 2021 crypto boom was a real boost to the market and XTZ benefitted from two substantial surges demonstrating that it has more investment potential than previously thought. Tezos is a low-cost coin capable of substantial percentage returns, which is what many newcomers to the crypto market are looking for in 2022.

XTZ price chart

The year to date has been an excellent one for Tezos as they have hit new heights. Their all-time high stands at just over $12 and in the last 6 months, they have hit the $9 mark. This indicated that things are moving upward and that a return to the previous high point is likely during the next series of surges.

XTZ price chart

The last three months have seen a downturn for XTZ. These fluctuations are characteristic of the cryptocurrency market. Although some investors were expecting less of a drop, many are taking advantage of the love coin price. The current price of $3 leaves a good amount of room for high percentage returns following the next upswing, with a very cheap initial buy-in.

Will XTZ Rebound From The Last Correction?

The correction following the recent peak of $9.18 was a shallow one. However, the correction gave way to a succession of continuing drops which have continued to bring the coin price down over the last two months. This has been a disappointing start to 2022, however, it does make profitability later in the year more likely for those investing now, while the buy-in is low.

The previous pattern of peaks and drop-offs gives a clear indication that the coin price will recover its previous high of $12. This is likely to happen as the surges begin to pick up in the second and third quarters of 2022. XTZ reached as low as $2.20 prior to the last major surge, so this is not a drastic loss for Tezos, and XTZ is expected to show signs of recovery within the second quarter.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Predictions For XTZ In 2022 And The Future

Conservative analysts are predicting a steady upward trend creating a long-term pattern of increasing coin price. This would still be subject to dips and surges throughout the course of each financial quarter, but the overall trajectory would be moving upwards.

The more optimistic expert analysts have stated that they expect XTZ to return to its high of 2021 and surpass the $9 mark later in 2022. This would be upwards of 300% returns on investments made at the current $3 price point.

The Tezos ecosystem is continuing to expand, which will then increase scalability for their  cryptocurrency:

‘#DYK that the #TezosFoundation supported #Tezos grantees in 33 countries over the period of the last biannual report? Discover the full list of grantees' projects Down pointing backhand index Report available in 6 languages https://tezos.foundation/reports/’

@TezosFoundation, Twitter account of the Tezos Foundation.

These global projects should also boost adoptions of Tezos globally, stabilizing the crypto coin and expanding its applications.

The growth model is predicted to slow slightly in 2023, before seeing substantial surges in 2024, but this may occur more quickly given the Tezos global expansion occurring currently.

In 2024 the XTZ coin price should move towards $60 through a series of surges spanning 2024-2025. This is likely to be subject to a few corrections and bearish trading patterns following the 2025 peak.

However, the following 5 years should see at least a 200% increase in coin price. These predictions outline a volatile sequence of surges, with an upward trajectory overall and excellent returns on long-term investments made in 2022.

 Check Out: Tezos Price Prediction – Will XTZ Value Rise?

XTZ Trading Forecast For 2022

The lowest estimates place XTZ in a sideways trading pattern throughout 2022. However, given the volatile nature of the XTZ trading pattern, this is looking increasingly unlikely. XTZ has not been subject to prolonged resistance in recent years.

The volatile trading pattern previously seen should mean several surges occur during the 3rd and 4th quarters of 2022. This gives plenty of opportunity for swing trading and should see an overall increase in XTZ coin price by the end of 2022. It also makes it more likely that the XTZ coin will reach its previous high of $12 during one of these surges. A peak like this could occur more than once throughout the year.

The current low of $3 gives a solid starting point for new investors looking for a cheap crypto coin which is likely to surge in the coming months. Although these surges are likely to be subject to corrections, these are not necessarily steep. This gives investors the option to sell at a relative high. This would then lead to good returns on initial investments made, with the possibility of further reinvestment.

Short-term gains will be dependent on keeping a close eye on the market in order to make the most of the 2022 surges as they appear later in the year. This type of trading is more suited to those comfortable handling their investment portfolio and actioning last-minute changes depending on the market conditions. 

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Tezos Trading Predictions FAQs

Who is behind Tezos?

The initial idea behind Tezos came from married French-American couple Arthur and Kathleen Breitman. As a financial mathematician and a hedge fund operator, Arthur and Kathleen started the process of creating Tezo together in 2014. They then developed it over the next four years and combined their efforts with Johann Gevers who headed up the Tezos Foundation, basing it in Zugg, Switzerland. When the coin launched fully in 2018 the Tezos Foundation was designed to provide support and governance where needed, to build the cryptocurrency. Gevers has since left the company and Arther Breitman heads up the Tezos Foundation at this time. The Breitmans are looking to make Tezos increasingly decentralized, in order to adhere to user preferences and make a greater impact within the Defi market moving forward.

What is Tezos?

Tezos is a platform that uses open-source blockchain technology to create smart chain transactions. These are validated using a proof of stake consensus system. These are peer-to-peer transactions and the validating nodes of the Tezos system are referred to as bakers. Bakers are compensated for providing validation and allowing the system to remain liquid and functional through receiving XTZ coins as a reward for their work. Users can also offer their coins to bakers to stake to provide smoother running to the system’s operations. The platform has the native coin Tezos, also known as tez, and uses the coin code XTZ. These crypto coins can be bought and sold as an asset or to trade for profit. The XTZ coins have been fully available through the Tezos platform since 2018. They are currently worth $3 and have reached an all-time high of $12, making them an inexpensive crypto coin to invest in.

How does Tezos compare to the market?

Tezos is holding a respectable place in the market, particularly given that it is a cheap cryptocurrency to buy. It is currently 46th in terms of market capitalization and is performing robustly despite the recent market downturn. The market cap for Tezos is currently at $2.68M and is expected to increase over the course of the next year.

Should I invest in Tezos in 2022?

Tezos is a good low-cost investment option. It is particularly good for those looking to make a long-term growth investment. It is also likely to yield high percentage returns for those interested in short-term swing trading over the course of 2022. The upward trajectory over the next five to ten years also makes it a solid investment over a long period. However many investors may sell during surges in order to create a steeper incline on their investment, before rebuying again at a lower price point, to restart their profit journey.

Read More: 

Pros and Cons of Investing in Tezos XTZ

Will Tezos Make Me Rich in 10 Years?

Tezos (XTZ) Price Prediction for 2025 and 2030