Tezos (XTZ) Price Prediction: Should You Buy?
Tezos is a blockchain first introduced in 2014. In 2017, it was released to the public and its cryptocurrency, XTZ, started at a value of $1.66. This was at the start of a bull crypto market and the coin reached its all-time high of $12.19 by mid-December 2017.
Today, XTZ is roughly 89% below that high — and even below its launch price. In October 2022, Coinbase lists a value of just $1.41 per coin. Tezos has a maximum coin supply of just under 762 million XTZ. Roughly 80 XTZ tokens are released per minute.
With crypto in a lingering bear market, where will Tezos go from here? Some experts predict a high of $5.19 for Tezos by the end of 2025, and some predict it will go even higher, but whether that price comes to fruition depends on several factors. Before delving into the details of a Tezos price prediction, here’s what makes this blockchain different.
What Makes the Tezos Blockchain Different?
When a new blockchain for cryptocurrency is created, its developers often claim that the new technology is designed to address shortcomings in prior blockchains.
Case in point: Bitcoin, the original cryptocurrency concept, was introduced to eliminate third-party intermediaries in peer-to-peer financial transactions. Years later, Solana was introduced to use a proof-of-history consensus mechanism that tracks the timing of transactions between computers that don’t inherently trust each other. This increases processing speeds and also results in more sustainable computing than other blockchains.
Tezos eliminates the possibility of hard forks being created off the original chain.
In its whitepaper, Tezos is described as a “self-amending cryptographic ledger.” That means it not only achieves consensus about the ledger, but about itself. The transaction protocol validates individual transactions using proof-of-stake, just like Solana or Ethereum following the Merge. Then, the consensus protocol determines the validity of the chain.
If a soft fork forms from two transactions being validated simultaneously, the consensus mechanism would quickly find it and validate the correct chain before a hard fork could develop.
What Is a Hard Fork and a Soft Fork in Crypto?
Cryptocurrency forks occur when a blockchain splits because a block has been mined or staked at the same time by two computers. The software will determine the block to be valid on one fork and invalid on the other. If the fork occurred accidentally, one of the forks will eventually die off.
But forks can also be initiated intentionally. Soft forks can be used to address minor software upgrades in the blockchain, which are backwards compatible with the old blockchain. Hard forks require all the nodes in the blockchain to upgrade and represent permanent changes to the blockchain.
Why Eliminate Hard Forks?
What’s so bad about a hard fork in a blockchain? Hard forks aren’t inherently bad. Planned hard and soft forks, alike, can be used to address critical security flaws, introduce new functionalities or reverse transactions following a cyberattack.
However, contentious hard forks that arise out of a disagreement between members of the community using the blockchain, or even the development team, can give rise to a new coin. Whenever there is a fork, planned or contentious, the associated cryptocurrency typically will exhibit instability in the market for a time. Investors aren’t sure whether the change will be negative or positive, so the value of the associated coin may fall.
Forking and Tezos
It’s important to know this background when you’re evaluating the future of Tezos. Tezos’ method of governance virtually eliminates the possibility of a hard fork or new coin being created. On the Tezos blockchain, anyone who owns an XTZ token can vote on changes to the network. This on-chain governance is also unique in the crypto world and lends itself to decentralized finance, where the power really is in the hands of the stakeholders.
Once consensus is reached, the software makes the change, updating the rules across all the nodes with no permanent fork required. A temporary fork, however, is created to test the stability and functionality of the rule.
Rewards for Baking Tezos
Tezos uses something called “liquid proof-of-stake” as its consensus mechanism, which means that Tezos stakers — called “bakers” — can loan their validation rights to other users. Bakers earn 8,000 XTZ tokens by creating a single node in the chain. Tezos was introduced by Arthur Breitman and Kathleen Breitman with the goal of developing the best reward structure.
Additionally, bakers have the right and capability to vote on the future of the network and also make suggestions for improvement. They can even be rewarded for their proposals. They can attach an invoice to the proposal and if the proposal is accepted after four separate voting sessions of 23 days each, they receive rewards.
Price History of Tezos
When Tezos first launched in 2017, it skyrocketed from under $2 to over $12 in just two months, in line with the overall crypto market and based on excitement about the new blockchain technology. But it quickly dipped back to a more reasonable price under $4. By July 2018, it was hovering near its introductory price and, in 2019, fell below $1.
In 2020, as the crypto market once again began to climb, tezos rose above $3 once again. The crypto boom led to XTZ rising to $5.58 in February 2021 and hitting $8.40 in early May of that year, then $9.18 in October.
Then, the crypto crash sent tezos tumbling to less than $2 per coin in mid-May 2022. So far, it has not recovered.
All of this to say, Tezos had a rocky start, and the current crypto winter has not been kind to the coin’s value, either.
Hope for Tezos in the Form of NFTs, Tether and More
Proof of People, an immersive three-day art festival held in London and presented by VerticalCryptoArt, was powered by the Tezos blockchain. The event combined the best of the metaverse with a real-world experience. More than 50 artists from around the world shared multisensory experiences, musical performances and a digital fashion showroom. A hackathon occurred, offering opportunities to introduce improvements to the Tezos blockchain. Events like this bode well for the future of the blockchain and its native coin, XTZ.
Tezos has been growing in popularity as a means of buying, selling and minting non-fungible tokens, since it has low fees and relatively low power consumption. Smart contracts launched on the platform also continue to grow. In February 2022, Coin Metrics reported that daily transactions increased in August 2021 when an upgrade cut the average block time in half.
Video game developer Ubisoft also announced that gaming NFTs from the company would be built on the Tezos blockchain, which was promising. More than 300,000 people held at least one XTZ coin at the is time, up from 120,000 in February 2020. FX Hash, an NFT platform on the Tezos blockchain, also garnered interest in early 2022.
Ties to Other Coins
Additionally, the stablecoin Tether, which is pegged to the US dollar, trades on the Tezos blockchain, although Tezos is just one of many blockchains that support the coin. In a press release from June 2022, a Tether representative stated, “USDT on Tezos will power revolutionary applications across payments, DeFi, and more.”
All this bodes well for the future of Tezos, as a crypto’s value is determined by market supply and demand as well as the applications and partnerships supported by its blockchain. In February, Brave New Coin boldly declared, “While it may have partially missed the boat on the smart contract boom of 2021, the project is beginning to gather steam, and 2022 may be the year the project re-emerges in the crypto investor consciousness.”
But what do other experts say about Tezos price predictions?
What Could Tezos Be Worth?
Cryptopolitan believes the price will jump slightly in the last quarter of 2022, reaching a potential high of $1.59. The trend will continue and by 2025, the coin could reach $5.19. If you’re patient and hold on to your investment, you could see gains of 300% by 2028, with XTZ rising to roughly $15.60. Within three short years after that, it could hit close to $50 per coin.
That means if you invest $100 in XTZ today, you could hold $3,801.52 by 2031 if Cryptopolitan is right.
But how do other experts feel?
Changelly pegs Tezos’ price by 2023 at $2.11 to $2.44.
Coin Price Forecast is not quite so optimistic, but believes tezos will rise to $1.72 by the end of 2022 and $2.02 by the end of 2023.
CryptoNewsZ also gives tezos an optimistic price prediction. “Backed by robust smart contracts, the Tezos price may easily touch $5.60 by the end of the year 2022,” the site writes.
Changelly expects XTZ to rise to a potential high of $5.19, with a low of $4.27, by 2025.
Coin Price Forecast predicts a price of $2.27 by the end of 2024, and $2.75 by the end of 2025.
CryptoNewsZ expects considerable gains for XTZ by the end of 2025, with prices reaching $10.
DigitalCoinPrice is also bullish on tezos, though not quite as optimistic, predicting that it could double in price by 2025 and even reach a high of $3.99.
5-Year Outlook and Beyond
As far as a long-term outlook, Coin Price Forecast data indicates the coin will fluctuate between $3 and $4 for the next few years, achieving a high of $4.34 in 2028. You’ll at least double your investment if you were to purchase today and sell any time after 2026.
The long-term outlook from DigitalCoinPrice has Tezos reaching a high of $9.98 by 2031.
Is Tezos Finished?
None of the experts listed above seem to indicate that Tezos will completely crash or vanish. You may not experience the best ROI from this crypto, but if you time your moves right, you could stand to profit.
It’s important to note that any crypto investment is highly speculative, and you should never invest more than you are willing to lose.
What Is the Future of Tezos Cryptocurrency?
By most expert accounts, XTZ might seem to be a lackluster investment, although some predictions show you could earn hefty profits if you buy and hold tezos right now.
The Tezos blockchain, however, shows tremendous potential for NFTs and rewards structures in Web3. Its on-chain voting mechanism, generous rewards plan for bakers and especially for those who innovate ideas on the blockchain, as well as stability — since there are no forks — all work in its favor. Plus, the blockchain offers green operations and low fees. This makes it highly desirable as a peer-to-peer payment network, for metaverse activities and for NFT creation, sales and distribution.
Remember, your investment is bound to fluctuate and there are no guarantees tezos will rise like the majority of experts believe. Don’t invest more than you can afford and keep your crypto safe in a cold wallet to avoid theft or fraud.
Information is accurate as of Oct. 24, 2022, and is subject to change.
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- Brave New Coin. 2022. "Coins to watch in 2022: Orginal ETH killer Tezos hits the comeback trail."
- Cryptopolitan. 2022. "VerticalCrypto Art presents: PROOF OF PEOPLE – London’s first NFT Festival powered by Tezos."
- Coin Metrics. 2022. "Analyzing Recent On-Chain Trends in Stablecoin Activity."