Is XTZ Coin a Good Investment in 2024?

Tezos (XTZ) is an open-source blockchain platform that supports self-upgrades, tailored for developing and managing decentralized applications and assets. Stakeholders of Tezos are charged with overseeing protocol upgrades, including changes to its governance process. Its native cryptocurrency is referred to as a tezzie or Tez. In 2018, the Tezos Initial Coin Offering (ICO) became one of the largest in history, amassing $232 million. Although the project encountered management and legal challenges through 2020, these issues have since been resolved. Tezos is now gaining momentum, primarily due to the popularity of its staking mechanism. Tezos introduced a system where holders of its XTZ cryptocurrency could vote on proposed changes to its rules, which would automatically be implemented by the software once approved. This mechanism was designed to minimize the likelihood of the blockchain splitting into two separate entities with different cryptocurrencies and values. With the launch of Tezos, the landscape of blockchain technology shifted, distinguishing crypto assets by their governance models: those with “off-chain governance” versus those with “on-chain governance.” To facilitate its governance model, Tezos implemented a voting process known as “baking.” In this process, users could lock their XTZ in special contracts to participate. Users had the option to become bakers themselves or delegate their XTZ to other bakers in exchange for a chance to earn newly created XTZ from the system. In this article, we’ll explore Tezos price prediction to find out the future market potential of XTZ coin and its current market sentiment.

Tezos: A Quick Introduction

Tezos was developed as a cryptocurrency that empowers any holder of its XTZ token to vote on prospective changes to the network’s rules. After achieving consensus on these changes, the software automatically updates the rules across all nodes, effectively placing the direction of Tezos’s future in the hands of its users.

This governance system enhances user engagement and satisfaction, significantly reducing the likelihood of a hard fork.

Tezos marked a pivotal moment in the cryptocurrency landscape by introducing a model that categorizes digital currencies into those with “on-chain governance” and those with “off-chain governance.”

This innovative approach garnered significant public interest, as evidenced by its highly successful fundraising in 2017, leading to its official launch in 2018.

History Since Inception

Arthur Breitman, originally from France and a former Google X and Waymo engineer who later worked as a quantitative analyst at Morgan Stanley, created Tezos. He developed it with his wife, Kathleen Breitman, who previously worked at Bridgewater Associates and R3. The couple first connected at a meeting for Anarcho-Capitalists in New York.

While still at Morgan Stanley in 2014, Arthur wrote a white paper under a pseudonym that laid out Tezos’s fundamentals. In July 2017, the Switzerland-based Tezos Foundation, led by Swiss entrepreneur Johann Gevers, and the Breitmans launched a highly successful initial coin offering (ICO) for Tezos. By 2021, it was the seventh-largest crypto coin offering.

The ICO attracted 66,000 Bitcoins and 361,000 ethers in just 13 days, valued at $232 million at the time, with the Tezos Foundation later reporting assets of $471 million by the end of 2022. Despite U.S. SEC warnings about ICOs, Tezos’s ICO was positioned as a donation-based fundraiser, eventually giving out Tez relative to contributions.

A leadership conflict between the Breitmans and Gevers led to Gevers stepping down in early 2018. Nearly a year post-ICO, in June 2018, the Tezos Foundation required ICO contributors to undergo KYC and AML checks before receiving their Tez, with 94% verified by November 2020.

In March 2020, the Tezos Foundation and the Breitmans settled a $25 million class-action lawsuit with ICO participants.

Tezos: How Does It Work?

The Tezos blockchain supports various features typical of cryptocurrencies.

Developers can leverage its software to execute custom programming logic (smart contracts) and create new programs (decentralized applications) that mimic traditional products and services.

However, its voting capabilities necessitate a unique architecture.

Specifically, the Tezos blockchain is divided into two components:

• Shell: This is the code that updates itself according to user votes and handles the interpretation of transactions and administrative tasks.
• Protocol: This component is in charge of submitting proposals to the shell for evaluation.

The Tezos LPoS Blockchain

Tezos maintains its network coherence through a modified proof-of-stake (PoS) consensus known as liquid proof-of-stake (LPoS).

This algorithm, similar to standard PoS systems, is utilized by computers running Tezos software to secure the network, verify transactions, and issue new XTZ tokens.

Participants, or “nodes,” engage in governance by staking XTZ in a process Tezos refers to as “baking.” To qualify as a baker, a node must hold 8,000 XTZ, which is termed a roll.

Users also have the option to delegate their tokens to other bakers, allowing them to allocate votes and earn XTZ rewards on the active blockchain.

Bakers are motivated to act honestly due to the ease with which users can switch their XTZ delegation among bakers based on their voting preferences.

Tezos Upgrades

Bakers participate in managing the blockchain by voting on proposed modifications to the code. The voting process is segmented into four distinct phases, each spaced approximately 23 days apart.

• The Proposal Period: During this phase, any baker can submit proposals to amend or upgrade the Tezos blockchain. Those receiving the most support advance to the next phase.
• The Exploration Vote Period: Proposals that gain a super-majority approval (80% of the votes in favor) progress to the following stage.
• The Testing Period: Approved proposals are then tested on a temporary test chain (a 48-hour fork) to ensure the changes are functional and safe for network implementation.
• The Promotion Vote Period: In the final phase, bakers vote to decide whether to implement the proposal. A proposal passes if it achieves a super-majority in its favor.

Additionally, bakers can include invoices with their proposals. If a proposal is accepted after all four voting periods, the protocol mints the specified amount on the invoice and disburses it to the baker.

Tezos Price Prediction: Price History

Tezos (XTZ) has experienced significant fluctuations since its initial trading in 2018. In September 2018, Tezos traded at $1.43, marking a 5.66% increase from the previous month. However, this was short-lived. By October, it dropped by 9.53% to $1.29, and in November, the price fell even further, plummeting by 61.52% to $0.49. This sharp decline continued into December, closing at $0.45 after an additional 8.5% decrease.

Tezos started 2019 with a slow recovery, opening at $0.37 in January, but February saw an 8.68% rise, reaching $0.40. March brought a remarkable 160.04% increase, closing at $1.05. April and May continued this upward trend, with prices rising by 15.09% and 23.88%, respectively. By June, however, Tezos experienced a significant 37.84% decline, dropping to $0.93, signaling the start of a volatile period. The year saw peaks and valleys but managed to close December 2019 with a modest increase of 0.96% at $1.33.

Tezos started 2020 with steady growth. January saw a 20.95% rise to $1.62, and February continued the upward trend with a 67% increase to $2.70. However, March brought a sharp decline due to global market instability, and the price dropped by 40.58% to $1.60. April and May saw a recovery, with April experiencing a remarkable 71.55% increase, bringing the price back to $2.75, while May saw a 1.51% increase to $2.79. The rest of the year continued with fluctuations, and by the end of December 2020, the price settled at $2.01 after a 19.23% decline.

The 2021 bull market brought major gains for Tezos. In January, the price jumped 41.32% to $2.84. February and March saw continued growth, with increases of 19.69% and 41.78%. By April, it peaked at $5.60, before dropping 35.74% in May to $3.60. In August, the price surged 70.34% to $5.16, followed by a 17.70% rise in September to $6.08. The year ended with a 20.64% decline to $4.34.

Tezos began 2022 at $3.48 but dropped 19.76% in January. Modest gains in February and March were followed by a 31.83% drop in April. By September, it fell to $1.42 after consistent declines.

In 2023, Tezos began the year with a strong start, seeing a 47.75% increase in January, reaching $1.05. February continued the trend with a 7.46% rise, reaching $1.13. However, April saw a 10.71% drop to $0.99. By June, the price dropped by 10.73%, settling at $0.80. As 2024 progressed, Tezos saw both gains and losses, with the price falling by 17.10% in June but recovering by 5.38% in September to $0.69.

Tezos Price Prediction: Technical Analysis

XTZ’s recent movements have formed a bullish pattern as buyers successfully pushed the price above immediate resistance channels. Buyers broke the prolonged bearish consolidation around $0.62 as the Tezos price formed a high near the $0.7 mark. As of writing, XTZ price trades at $0.68., surging over 0.4% in the last 24 hours. 

The price has surged above 23.6% Fib level and is holding well above the EMA20 trend line, aiming to meet bullish goals. The current level is crucial for the bulls to hold, as falling below it could lead to the retest of $0.6 support level. 

As the RSI level now hovers above the midline at level 64, XTZ coin price might soon trigger a minor upward correction. 

If the price continues to hold above the 20-day EMA, it could set the stage for a push above $0.7. Such a move might initiate a recovery toward $0.76 and potentially extend to $0.84.

Tezos Price Prediction By Blockchain Reporter 

Tezos Price Prediction 2024

Based on our thorough analysis of previous price trends, the forecasted minimum price of Tezos in 2024 is expected to be around $0.7761. The price could climb to a maximum of $0.8392, with an average trading value projected at $0.8108. 

Tezos Price Prediction 2025

In 2025, the price of Tezos is anticipated to reach a minimum of $1.09. The maximum possible price for XTZ is predicted to hit $1.35, with an average price around $1.13 for the year. 

XTZ Price Forecast for 2026

According to technical analysis, the minimum price of Tezos in 2026 is estimated to be $1.65. The maximum value could rise to $1.90, with an average trading price of $1.70 throughout the year. 

Tezos (XTZ) Price Prediction 2027

By 2027, Tezos is forecasted to reach a minimum value of $2.37. The price could peak at $2.81, with an average value of $2.44 over the year. 

Tezos Price Prediction 2028

The minimum price of Tezos in 2028 is expected to be $3.48. The price could reach a maximum of $4.16, with an average forecast of $3.58 during the year. 

Tezos Price Prediction 2029

Tezos is predicted to have a minimum price of $4.92 in 2029. The maximum potential price is expected to reach $5.90, with an average trading price of $5.10 for the year. 

Tezos (XTZ) Price Prediction 2030

For 2030, the forecast suggests a minimum price of $7.23. The maximum price is expected to be around $8.45, with an average trading price of $7.48 for the year. 

Tezos Price Forecast 2031

By 2031, Tezos is expected to reach a minimum of $10.39. The maximum price could hit $12.63, with the average trading price predicted to be $10.77. 

Tezos (XTZ) Price Prediction 2032

In 2032, Tezos is forecasted to have a minimum value of $14.91. The maximum price is predicted to rise to $18.28, with an average price forecast of $15.34 throughout the year. 

Tezos Price Prediction 2033

The price of Tezos in 2033 is expected to reach a minimum of $22.11. It could reach a maximum of $25.44, with the average price projected to be around $22.73. 

Tezos Price Prediction: By Experts

According to the current Tezos price prediction from Coincodex, the price of Tezos is expected to drop by -2.15%, reaching $0.672113 by October 20, 2024. Technical indicators suggest a neutral sentiment, while the Fear & Greed Index stands at 54, also indicating neutrality. Over the past 30 days, Tezos has seen 17/30 (57%) green days, with a price volatility of 5.54%.

Coincodex suggests that now might be a good time to buy Tezos. Taking into account historical price movements and BTC halving cycles, the forecast for 2025 estimates the yearly low for Tezos at $0.619414, with potential highs reaching up to $1.449321 the following year.

Market analysts and experts forecast that by 2026, Tezos (XTZ) will open the year at $2.03 and may trade around $2.49, according to Digital Coin Price. This represents a significant increase compared to the previous year. By the start of 2030, technical analysis and price predictions suggest that Tezos could reach a value of $5.05, maintaining this level through the end of the year. Additionally, XTZ might climb as high as $4.64 during the same period. The years between 2024 and 2030 are projected to be crucial for the growth of Tezos.

Is Tezos a Good Investment? When to Buy?

The XTZ cryptocurrency is essential for maintaining and operating the Tezos network, allowing users to hold, spend, send, or bake it.

Owners of XTZ can participate in network governance by baking their tokens, which entitles them to vote on network upgrades. The influence of each vote correlates with the amount of XTZ they bake.

Tezos compensates participants with XTZ based on the quantity of tokens they bake. Bakers earn a fraction of the rewards, which are also distributed to users who delegate their XTZ to the bakers.

Tezos is set apart from Bitcoin and Ethereum by its governance protocols, which include formal systems absent in the latter two. Additionally, Tezos is unique in its assertion that the blockchain is unforkable. Its mechanism for adjusting active stakes to generate new tokens is also distinctive and designed to boost participation.

Furthermore, supporters of Tezos highlight that its proof of stake model for blockchain validation is more energy-efficient than the mining process used by

.

Overall, Tezos is a good investment in the long term. An investment at around $0.6 might turn profitable in the long run. However, it is advised to do your own research before investing in the crypto market.  

Conclusion

Tezos is a seasoned cryptocurrency that has successfully navigated many challenges. Its distinctive approach to governance may appeal to many investors. Furthermore, as a blockchain capable of hosting decentralized applications, Tezos demonstrates why it remains a favored choice among crypto enthusiasts.

It is yet to be determined if Tezos’ inflation mechanism will effectively safeguard stakeholders in the long term by distributing additional tokens.

The network’s governance protocols and its measures to prevent blockchain forks offer certain benefits.

Recently, Tezos technology was employed in an experiment by European central banks to assess the viability of introducing a digital euro, a central bank digital currency.

Additionally, Tezos has garnered attention from One Of, the NFT platform supported by music producer Quincy Jones.

However, other applications such as cryptocurrency yield farming, which rely on increasing crypto valuations and robust financial markets, might not be as enduring over time.

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