Tezos price prediction is one of the most popular search terms since XTZ wreaked havoc among crypto bears in the last part of 2019.
Before we dive into the nuts and bolts of this Tezos price prediction, let’s quickly check what is XTZ all about.
Tezos is a novel blockchain, another “Ethereum killer” that was first proposed in a paper released in Aug. 2014 with more specifics announced in a whitepaper released in Sept. 2014. The Tezos blockchain is designed with a focus on on-chain governance, allowing token holders to vote for proposed changes to functionality in order to avoid forking the network.
In 2015 the founders, Kathleen and Arthur Breitman established a company called Dynamic Ledger Solutions which was responsible for writing the initial code for Tezos. At the core of this codebase is a self-amending protocol, a system to formalize proposing, voting for, and implementing changes to the functionality of the network. Once a proposal has been made holders of Tezos (XTZ) tokens are able to vote with a weighting of one vote per token.
Tezos blockchain uses a modified version of a delegated proof-of-stake (DPoS) system where stakers, called bakers within the network, can lock up their tokens in exchange for the ability to validate blocks. In Tezos more liquid DPoS system users are able to “delegate” tokens to bakers without transferring ownership. Rewards for validating blocks are distributed to bakers in the form of new XTZ tokens with a proportional amount of the reward distributed to wallets that have delegated tokens to the baker. This enables smaller token holders to participate in the validation (and reward) process if they hold less than the required amount to become a full baker.
Our XTZ Token Price Prediction for 2021
It is quite clear that cryptocurrency price predictions should be taken with a grain of salt, but there are factors to look out for that will almost certainly have a bearing on the future price of the wider cryptocurrency market. This includes:
- The level and nature of regulations imposed in dominating cryptocurrency markets
- The level of cryptocurrency adoption in the coming year and beyond
- The level of growth in the cryptocurrency futures market
- The utility of tokens and the ability of the underlying technology to solve real-world problems
XTZ, as the rest of the market, is tied at the hip of bitcoin’s price action. If bitcoin embarks on another bull run, XTZ can hope for one as well. Bitcoin usually has a cool-off phase after its mega bull runs and that is when the altcoins take over and have a field day with the bulls, often doubling or tripling their price within days.
With the pandemic breakout, the world was sent into hybernation for couple of months and it reflected negatively on the cryptocurrencies, sending bitcoin downhill as we witnessed even 40% daily losses. However, situation quickly stabilized and bitcoin as the flagbearer took the crypto market back up. We are in a major bull run since the summer and, if we are listening to the analytics from social media and journalistic desks, we are far away from its local zenith.
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What this means for Tezos price in 2021?
As long as bitcoin is in the main role and pulling upwards, there is little room for XTZ to shine. It will, however, increase its USD denominated value thanks to the overall rise in crypto prices. Nevertheless, XTZ to BTC ratio will probably slump, possibly to all-time lows. This means that it is best to keep your funds in bitcoin until it reaches its provisional peak, opening the doors for the altcoins to enter the scene. Tezos will be among the top candidates to record big gains, as the money usually flows from bitcoin profits to bluechip altcoins and big cap coins before trickling down to the less known and smaller projects.
As for XTZ, the popularity of their staking mechanism and its role as a price driver can’t be emphasized enough. This is the major positive price force for Tezos as more and more cryptocurrency exchanges branch out into staking as service. Tezos is regularly the number one coin that is offered as a staking product. Not only Coinbase, but Cex.io and now Binance have all entered this sector of crypto industry and all of them already offer Tezos as the first staking coin on their platforms.
Tezos Coin (XTZ) Long-Term Outlook
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
However, not all projects have the same chance of failing (risk), nor do they have the same potential upside (reward).
As a result of ICO teams’ incompetence and lack of integrity, fueled by basic human instinct that is greed and crypto investors’ naivety, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will XTZ be among those 5%?
It stands a good chance of doing so.
Due to the scalability, problems with smart contracts and formal verification plaguing Ethereum, Tezos has a great opportunity to become the dominant chain in the cryptocurrency ecosystem. Through it’s self amending protocol, Tezos will be able to upgrade and evolve over time which is a strong characteristic of a 3rd generation blockchain. However, when we consider that even Ethereum is a highly experimental technology, Tezos’ completely unproven approach to blockchain and protocol development is a double-edge sword.
Tezos, as a project, is also extremely well-funded from the Tezos Foundation which is sitting on a pot of nearly $500 million according to disclosures from October 2018.
History has shown that truly innovative technology always takes longer to develop, costs more to fund, and is frequently doubted before officially coming to market. Despite XTZ having been around for quite some time (~2 years, or 200 years in crypto-years), the innovative efforts and challenges Tezos is taking head on are easily some of the biggest in the crypto world. Patience is a virtue…
However, before we can expect Tezos to see large adoption, it’s fair to say the broader crypto world will need to see some adoption of its own. It’ll take time, an effective marketing campaign, greater awareness, further development, and meaningful partnerships to exist before one can expect a ramp in adoption.
This makes Tezos one of the most intriguing projects to have in your portfolio – the upside is huge but the risk is even bigger. Investment in XTZ makes sense only on a very long time scale and proper expectation management – it could easily end ingloriously.
Price will heavily depend on what BTC will do and since many analysts think BTC will be making big moves in this year, it is expected that XTZ will do them as well. So 2021 will be a year of potential big moves (more likely upwards) and we can see Tezos at least doubling its end of 2019 price value.
Considering Tezos is also one of the rare altcoins that is capable of decoupling from Bitcoin and hence, one of the altcoins that is highly likely to outperform BTC in 2021. That means that Tezos might see its satoshi value go up and, should the analyst be right when it comes to bitcoin, compound the bitcoin gains against USD. All of this means, Tezos might be worth 3-4x more in USD terms by December 2021.
Market prediction for Tezos – XTZ Price 2021
With the market being completely unpredictable, forecasting the cryptocurrency price is really more of a gamble and luck rather than a data driven guesstimate.
Let’s throw a glance at the eminent publications and personalities, and their predictions regarding the XTZ price, which will give us another point of view to consider:
Cryptoground.com is cryptocurrecy prediction algorithm that is moderately to overly bullish on most of coins, similarly on XTZ token as well. They forecast XTZ to stay around the current level of around $1.22 per token by EOY.
Walletinvestor is a popular website that does technical analysis-based price predictions of various cryptocurrencies and traditionally has a skeptical outlook for most coins, but not so for XTZ. According to them, XTZ is expected to surge by almost 3x – from the current $1.33 to $3.17 by the end of the year.
Trading beasts is on a diametrically opposite side of Walletinvestor and sees a much more bullish future for Tezos token. Their algo forecasts that XTZ can ascend to around $1.82 within a year which means it will essentially grow 1.5x in value in the next year.
Another crypto prediction algorithm that is most conservative in its approach of the 4 we enumerated here – DCP usually predicts price to hover around the same level as the current state, forecasting a twofold increase or reduction for certain coins. XTZ is on the bullish side of their algo that sees it reaching $2.67 per coin by December 2021.
Tezos Coin Future: 2023, 2025, 2030
XTZ Price Prediction 2023
Tezos Price Prediction 2025
Tezos Price Prediction 2030
Realistic XTZ Price Prediction
Tezos Forecast – Conclusion
We don’t yet know which crypocurrencies will make it out of the crypto winter we’re wandering in right now. There are plenty of coins that stand a good chance of weathering the crypto storm and perhaps becoming more relevant as the market contracts and devours some of the weaker projects. However, there are even more of those projects who are already dead but no one noticed yet.
But, looking at things from this point in time and place, it’s reasonable to say that Tezos is standing in a better position than many of its competitors.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com