Markets
Tezos (XTZ) Fights Market Drops and Sees Prices Rebound
- Tezos (XTZ) continues its downtrend as it is down 29% year-over-year and 4% over the past seven days.
- According to analysts, bulls are looking to push the price to $0.94, but failing to do so could result in another downtrend to $0.6.
Tezos (XTZ) There is a bearish extension, dragging the asset down the price curve as the bulls struggle to gain control. According to our market data, XTZ is down 4% over the past seven days, extending its year-to-date decline to 29%. At press time, the asset was trading at $0.77 following a 55% drop in its 24-hour trading volume.
Regardless, investors continue to accumulate the asset as the Chaikin Money Flow (CMF) indicator confirms a significant increase in inflows. According to analysts, increased buying pressure indicates growing confidence and has a direct correlation with price action. However, the asset funding rate continues to fluctuate between positive and negative territory. Based on our survey, this type of volatility generally hints at a lack of consensus among investors regarding the near-term direction of the asset.
In general, positive funding rates give an indication that long contracts dominate the market. On the other hand, negative funding rates also indicate the dominance of short contracts. With the mixed signals from XTZ, consolidation is underway as the price remains range-bound at $0.76 and $0.87. However, a breakout or breakout would certainly invalidate the bullish neutral position. According to analysts, XTZ could reach $0.94 once the bulls manage to take control of the bears. Any failed attempt could drop the price to $0.6.
Tezos (XTZ) announces 16th upgrade
Outside of price analysis, developers have been actively working to position Tezos among the leading blockchains, with its 16th upgrade recently going live on mainnet to reduce block finality times to just 10 seconds. According to a Crypto News Flash report, the upgrade was facilitated to maintain low transaction fees on the Etherlink L2 network compatible with the Ethereum virtual machine. In reality, Etherlink would now have become cheaper than Arbitrum and Optimism after the upgrade.
Arthur Breitman, co-founder of Tezos commented:
Thanks to the Paris update, Etherlink users will benefit from an improved UX: the L2 finalization time will be comparable to that of Arbitrum One and Optimism, but the L1 publishing latency will be (even) better.
Currently, Etherlink has a transaction completion time of 500 milliseconds. On top of that, data published to the core Layer 1 is published in approximately 10 seconds. Meanwhile, it would take two minutes on Optimism and seven minutes on Arbitrum One. Regardless, Arbitrum One and Optimism remain two of the biggest Ethereum L2 in terms of total value locked. Arbitrum One has a TVL of $19.2 billion and Optimism has a TVL of $7.8 billion.
One of the key features of the Tezos upgrade is the new Data Availability Layer (DAL) which is intended to enable Tezos Smart Rollups to scale to support millions of TPS in the future. In July 2023, the Tezos rollup reached one million TPS. His incredible impact was confirmed by Breitman.
This feat was achieved by leveraging horizontal scaling capabilities (1000 rollup nodes running in parallel at 1000 TPS each). The Paris upgrade enables the Data Availability Layer (DAL) on the mainnet, increasing the ability of Tezos L1 to attest to the release of cumulative data by several orders of magnitude.
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