- Tezos price has been in a freefall that has dragged it to the lowest level since 2020.
- XTZ ignored the latest Lima upgrade that seeks to improve its throughput.
Tezos price has been in a freefall this week as concerns about liquidity and ecosystem continue. XTZ plunged to a low of $0.76, which was the lowest level since 2020. It has plunged by more than 91% from its all-time high, making it one of the top fallen angel.
XTZ price ignores the latest upgrade
Tezos is one of the oldest proof-of-stake (PoS) networks that seeks to become a key rival to Ethereum. It describes itself as a platform set to evolve, meaning that it does not need regular updates.
Tezos is also well-known for its big-profile partnerships. It has a major partnership with RedBull, the winner of the constructor’s championship in Formula 1. Also, the company has a partnership with Manchester United.
To a large extent, Tezos has not lived to its earlier goals. Its network has not achieved any meaningful market share in most of the blockchain industries. For example, despite its high profile, Tezos has a total value locked of just $42.9 million. Youves has a dominance of 80.7%.
Find out how to buy Tezos.
Similarly, Tezos does not have a major role in the metaverse industry. The only industry where it has achieved some success is in the NFT industry. Data compiled by CryptoSlam shows that Tezos blockchain has handled NFTs worth over $57 million in its lifetime. In contrast, Avalanche has handled NFTs worth over $31 billion.
The most recent Tezos news was the launch of Lima, the 12th network upgrade. This upgrade introduced new features that are designed to increase its throughput and make it more developer friendly. It achieves this by separating validation and application. As such, every newly received block will be validated before it moves to peers.
Still, it is unclear how this upgrade will increase the network’s adoption in the coming years. Besides, competition in the industry is rising as platforms like Cronos and Avalanche continue gaining market share.
Tezos price prediction
The daily chart shows that the XTZ price has been in a freefall in 2022. As it dropped, it moved below the important support level at $0.909, which was the lowest level on November 22. It has also moved below all moving averages while the Relative Strength Index (RSI) and MACD continued falling.
Therefore, the outlook for the coin is still bearish, with the next level to watch being at $0.50. A move above the resistance point at $1 will invalidate the bearish view.
