According to a recent report by crypto research firm Messari, Tezos has been progressing in its roadmap development, with several new features and upgrades being introduced to the network. 

The platform’s core developers have announced a strategic shift to hybrid optimistic/zk rollups, with multiple teams committed to building rollups that will enable the platform to process more transactions per second (TPS) and enhance scalability.

Tezos DeFi Ecosystem Booms

Per the report, the recent launch of the 14th network upgrade, Nairobi, has brought improvements to the platform, new rollup functionality, and enhanced attestations. 

In addition, Tezos core developers have unveiled the Data Availability Layer (DAL), which operates in parallel with Tezos Layer-1 and ensures data availability while scaling bandwidth and storage capacity.

Tezos has also been experiencing growing traction in the Decentralized Finance (DeFi) space, with the Total Value Locked (TVL) nearly doubling in the past year. The platform is seeing the launch of several new DeFi protocols, including novel DEXs, lending protocols, and perps protocols.

To further support the growth of the Tezos ecosystem, the XTZ Ecosystem DAO has been introduced to manage and distribute XTZ, Tezos’ native token, to support community initiatives. 

Nevertheless, despite experiencing a strong Q1 2023, with market capitalization surging from $0.66 billion to $1.03 billion (+55%), outperforming the broader market by 9%, the platform saw a 30% Quarter-over Quarter (QoQ) drop in Q2, ending the quarter with a market capitalization of $0.72 billion, primarily following the SEC’s complaints against Binance and Coinbase.

Furthermore, the total crypto market capitalization during Q2 increased by 2%, driven by Bitcoin and Ethereum, which saw a 7% and 6% rise, respectively, propelled by the introduction of Bitcoin Spot Exchange-Traded Funds (ETFs). 

On the other hand, Tezos’ revenue, measured by total gas fees spent (excluding storage costs), experienced an 82% QoQ decrease in Q2, primarily influenced by a 79% decrease in the average transaction fee. 

The reduction in the average transaction fee was attributed to the decline of the XTZ price and a slowdown in NFT front-running bidding activities.

Fixed Inflation Rate And Burn Mechanisms 

Tezos’ native token, XTZ, serves multiple functions within the network, including staking, governance, and payment for gas fees. 

The token has a fixed annual inflation rate of 4.4%, with a total supply of 965 million XTZ. The report notes that Tezos has implemented burn mechanisms by creating new accounts or smart contracts and imposing penalties on misbehaving validators. 

Moreover, During Q2, Tezos displayed consistent usage levels compared to previous quarters. The network recorded an average of 53,000 daily smart contract calls and 41,000 daily transactions, indicating a 7% decrease and a 1% decline in QoQ, respectively. 

However, NFTs remain the key driver of activity on Tezos, while DeFi applications continue to see greater adoption.

Conversely, Tezos’ ecosystem experienced mixed activity, with NFTs and gaming remaining relatively flat, while DeFi continues to see increased activity. Regarding decentralization and staking, Tezos has a globally distributed validator set with a high staking rate relative to other base-layer protocols.

Looking ahead, Tezos’ strategic shift in its roll-up roadmap, continued developments in the Data Availability Layer, and the anticipated activation of the Hybrid Optimistic/ZK Rollup hold promise for further growth and innovation on the network. 

Overall, Tezos remains a promising player in the blockchain space, with a robust ecosystem and a growing community of developers and users.

Currently, the price of XTZ is $0.810801, representing a 0.41% price decline in the last 24 hours and a 2.06% price decline in the past 7 days. 

The 24-hour trading volume for XTZ is $15,383,765.48, indicating significant trading activity on the Tezos network. 

Featured image from Unsplash, chart from TradingView.com

The post Tezos (XTZ) Loses Steam In Q2, Market Cap Drops 30% Following SEC Crackdown appeared first on CryptoSens.

According to a recent report by crypto research firm Messari, Tezos has been progressing in its roadmap development, with several new features and upgrades being introduced to the network. 

The platform’s core developers have announced a strategic shift to hybrid optimistic/zk rollups, with multiple teams committed to building rollups that will enable the platform to process more transactions per second (TPS) and enhance scalability.

Tezos DeFi Ecosystem Booms

Per the report, the recent launch of the 14th network upgrade, Nairobi, has brought improvements to the platform, new rollup functionality, and enhanced attestations. 

In addition, Tezos core developers have unveiled the Data Availability Layer (DAL), which operates in parallel with Tezos Layer-1 and ensures data availability while scaling bandwidth and storage capacity.

Tezos has also been experiencing growing traction in the Decentralized Finance (DeFi) space, with the Total Value Locked (TVL) nearly doubling in the past year. The platform is seeing the launch of several new DeFi protocols, including novel DEXs, lending protocols, and perps protocols.

To further support the growth of the Tezos ecosystem, the XTZ Ecosystem DAO has been introduced to manage and distribute XTZ, Tezos’ native token, to support community initiatives. 

Nevertheless, despite experiencing a strong Q1 2023, with market capitalization surging from $0.66 billion to $1.03 billion (+55%), outperforming the broader market by 9%, the platform saw a 30% Quarter-over Quarter (QoQ) drop in Q2, ending the quarter with a market capitalization of $0.72 billion, primarily following the SEC’s complaints against Binance and Coinbase.

Furthermore, the total crypto market capitalization during Q2 increased by 2%, driven by Bitcoin and Ethereum, which saw a 7% and 6% rise, respectively, propelled by the introduction of Bitcoin Spot Exchange-Traded Funds (ETFs). 

On the other hand, Tezos’ revenue, measured by total gas fees spent (excluding storage costs), experienced an 82% QoQ decrease in Q2, primarily influenced by a 79% decrease in the average transaction fee. 

The reduction in the average transaction fee was attributed to the decline of the XTZ price and a slowdown in NFT front-running bidding activities.

Fixed Inflation Rate And Burn Mechanisms 

Tezos’ native token, XTZ, serves multiple functions within the network, including staking, governance, and payment for gas fees. 

The token has a fixed annual inflation rate of 4.4%, with a total supply of 965 million XTZ. The report notes that Tezos has implemented burn mechanisms by creating new accounts or smart contracts and imposing penalties on misbehaving validators. 

Moreover, During Q2, Tezos displayed consistent usage levels compared to previous quarters. The network recorded an average of 53,000 daily smart contract calls and 41,000 daily transactions, indicating a 7% decrease and a 1% decline in QoQ, respectively. 

However, NFTs remain the key driver of activity on Tezos, while DeFi applications continue to see greater adoption.

Conversely, Tezos’ ecosystem experienced mixed activity, with NFTs and gaming remaining relatively flat, while DeFi continues to see increased activity. Regarding decentralization and staking, Tezos has a globally distributed validator set with a high staking rate relative to other base-layer protocols.

Looking ahead, Tezos’ strategic shift in its roll-up roadmap, continued developments in the Data Availability Layer, and the anticipated activation of the Hybrid Optimistic/ZK Rollup hold promise for further growth and innovation on the network. 

Overall, Tezos remains a promising player in the blockchain space, with a robust ecosystem and a growing community of developers and users.

Currently, the price of XTZ is $0.810801, representing a 0.41% price decline in the last 24 hours and a 2.06% price decline in the past 7 days. 

The 24-hour trading volume for XTZ is $15,383,765.48, indicating significant trading activity on the Tezos network. 

Featured image from Unsplash, chart from TradingView.com

The post Tezos (XTZ) Loses Steam In Q2, Market Cap Drops 30% Following SEC Crackdown appeared first on CryptoSens.

• XTZ’s price shows a spark of strength as price breaks out from a descending triangle as price eyes $2 with good volume. 
• XTZ continues in a range-bound downtrend movement as the price aims to breakout. 
• The price of XTZ continues to trade below the 50 and 200 Exponential Moving Averages (EMA) on the daily timeframe. 

Despite market uncertainties that have affected the prices of many altcoins in recent weeks, the price of Tezos (XTZ) has remained strong. Tezos (XTZ) has held firm ahead of a breakout from its long downtrend, with the price indicating a possible rally to $2. Bitcoin (BTC) price bounced off its low of $19,100 to $19,600 as it attempted to rally to a high of $20,000; this could mean relief bounces for most altcoins. (Data from Binance)

Tezos (XTZ) Price Analysis On The Weekly Chart.

Despite experiencing some great price movement in recent weeks due to so many partnerships and great projects built on the Tezos network, XTZ has attracted the attention of traders and investors with its unique use case as many look for opportunities to buy.

The bear market has had a fair share of the price of XTZ, as the price of XTZ dropped from a high of $8 to a weekly low of $1.2, where the price was able to form good support to hold sell-offs due to panic.

The price of XTZ, after forming good support, price rallied to a high of $2, and the price was rejected to $1.4 despite showing great strength to break and close above this resistance. The rejection of XTZ from this region has led to the price range to build more buyers other than a break out of this range. 

Weekly resistance for the price of XTZ – $2.

Weekly support for the price of XTZ – $1.2.

Price Analysis Of XTZ On The Daily (1D) Chart
Daily XTZ Price Chart | Source: XTZUSDT On Tradingview.com

On the daily timeframe, the price of XTZ remains below its key resistance level of $2; despite bouncing off its daily low, the price of XTZ faces a test to break above $2.

In an attempt to break out above $2, the price of XTZ has been thrown into a downtrend range movement, forming a descending triangle as the price attempts to break out with good volume.

If the price of XTZ breaks and holds above $1.52, we could see a good volume rally to as high as $2, but if the price of XTZ fails to breakout, the price could be rejected back into its $1.2-range.

Daily resistance for the XTZ price – $1.52.

Daily support for the XTZ price – $1.2.

Featured Image From zipmex, Charts From Tradingview 

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