Market
Tezos (XTZ) Loses Steam In Q2, Market Cap Drops 30% Following SEC Crackdown
![](https://coin2049.io/wp-content/uploads/2024/06/rodion-kutsaiev-yG9XXLhyyZs-unsplash.jpg)
According to a recent report by crypto research firm Messari, Tezos has been progressing in its roadmap development, with several new features and upgrades being introduced to the network.
The platform’s core developers have announced a strategic shift to hybrid optimistic/zk rollups, with multiple teams committed to building rollups that will enable the platform to process more transactions per second (TPS) and enhance scalability.
Tezos DeFi Ecosystem Booms
Per the report, the recent launch of the 14th network upgrade, Nairobi, has brought improvements to the platform, new rollup functionality, and enhanced attestations.
In addition, Tezos core developers have unveiled the Data Availability Layer (DAL), which operates in parallel with Tezos Layer-1 and ensures data availability while scaling bandwidth and storage capacity.
Tezos has also been experiencing growing traction in the Decentralized Finance (DeFi) space, with the Total Value Locked (TVL) nearly doubling in the past year. The platform is seeing the launch of several new DeFi protocols, including novel DEXs, lending protocols, and perps protocols.
![Tezos](https://www.newsbtc.com/wp-content/uploads/2023/07/Screenshot_32.jpg?resize=858%2C425)
To further support the growth of the Tezos ecosystem, the XTZ Ecosystem DAO has been introduced to manage and distribute XTZ, Tezos’ native token, to support community initiatives.
Nevertheless, despite experiencing a strong Q1 2023, with market capitalization surging from $0.66 billion to $1.03 billion (+55%), outperforming the broader market by 9%, the platform saw a 30% Quarter-over Quarter (QoQ) drop in Q2, ending the quarter with a market capitalization of $0.72 billion, primarily following the SEC’s complaints against Binance and Coinbase.
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Furthermore, the total crypto market capitalization during Q2 increased by 2%, driven by Bitcoin and Ethereum, which saw a 7% and 6% rise, respectively, propelled by the introduction of Bitcoin Spot Exchange-Traded Funds (ETFs).
On the other hand, Tezos’ revenue, measured by total gas fees spent (excluding storage costs), experienced an 82% QoQ decrease in Q2, primarily influenced by a 79% decrease in the average transaction fee.
The reduction in the average transaction fee was attributed to the decline of the XTZ price and a slowdown in NFT front-running bidding activities.
Fixed Inflation Rate And Burn Mechanisms
Tezos’ native token, XTZ, serves multiple functions within the network, including staking, governance, and payment for gas fees.
The token has a fixed annual inflation rate of 4.4%, with a total supply of 965 million XTZ. The report notes that Tezos has implemented burn mechanisms by creating new accounts or smart contracts and imposing penalties on misbehaving validators.
Moreover, During Q2, Tezos displayed consistent usage levels compared to previous quarters. The network recorded an average of 53,000 daily smart contract calls and 41,000 daily transactions, indicating a 7% decrease and a 1% decline in QoQ, respectively.
However, NFTs remain the key driver of activity on Tezos, while DeFi applications continue to see greater adoption.
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Conversely, Tezos’ ecosystem experienced mixed activity, with NFTs and gaming remaining relatively flat, while DeFi continues to see increased activity. Regarding decentralization and staking, Tezos has a globally distributed validator set with a high staking rate relative to other base-layer protocols.
Looking ahead, Tezos’ strategic shift in its roll-up roadmap, continued developments in the Data Availability Layer, and the anticipated activation of the Hybrid Optimistic/ZK Rollup hold promise for further growth and innovation on the network.
Overall, Tezos remains a promising player in the blockchain space, with a robust ecosystem and a growing community of developers and users.
Currently, the price of XTZ is $0.810801, representing a 0.41% price decline in the last 24 hours and a 2.06% price decline in the past 7 days.
The 24-hour trading volume for XTZ is $15,383,765.48, indicating significant trading activity on the Tezos network.
Featured image from Unsplash, chart from TradingView.com
Market
Where Will Bitcoin (BTC) Price Head Amidst Liquidations?
![](https://coin2049.io/wp-content/uploads/2024/06/bic_Bitcoin-___S_P-500_bearish.png)
Bitcoin’s (BTC) price has barely recovered from the debacle of momentum witnessed over the last few days.
Nevertheless, the cryptocurrency appears to be under the threat of further drawdown due to not bearishness but bullishness of the investors.
Bitcoin Faces a Challenge
Bitcoin’s price fell from $62,000 to $53,300, shocking the crypto market and killing many bullish dreams. The futures market registered long liquidations amounting to $263 million in three days.
This is the second-highest liquidation in the last two weeks, with the previous high noted three months ago in April. Generally, such high liquidations tend to calm investors down and make them step back to let the market cool down.
Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know
![Bitcoin Long Liquidations.](https://beincrypto.com/wp-content/uploads/2024/07/Screenshot-2024-07-06-174628-850x235.png)
However, BTC holders do not seem to agree with this opinion. The drawdown is considered to be facing the impact of Federal Reserve Chair Jerome Powell’s bearish speech earlier this week. Thus, the investors expect a quick recovery and are prepared to profit from it.
Analyst Willy Woo highlighted this in his explanation of the difference between buying futures and buying spot. He denoted that the former results in a bearish environment and stated that this could cause further losses.
According to the Bitcoin Open Value Oscillator, about half a million long contracts are still open in the futures market. Should Bitcoin’s price fall further, these longs could be liquidated. This will result in an extended period of bearishness for BTC.
![Bitcoin Open Value Oscillator](https://beincrypto.com/wp-content/uploads/2024/07/GRyNsoiXQAAQeuG-850x632.jpeg.optimal.jpeg)
BTC Price Prediction: Validating the Pattern
Bitcoin’s price, trading at $56,961 at the time of writing, is stabilizing after nearly falling to $53,300 yesterday. The cryptocurrency has yet to fulfill the expected 17% drawdown arising from the double top formation from four months ago.
This prediction targets a drop to $50,900, which will lead to massive long liquidations, as mentioned above. Should BTC lose its support of $55,000, this would become more probable.
Read More: Bitcoin (BTC) Price Prediction 2024/2025/2030
![Bitcoin Price Analysis.](https://beincrypto.com/wp-content/uploads/2024/07/Nxh6HFvT-850x363.png)
On the other hand, if Bitcoin’s price manages to bounce back from $55,000 and flip $58,800 into support again, recovery could begin. This would enable a rise to $60,000 to invalidate the bearish thesis.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
LayerZero On The Rise: ZRO Bullish Momentum Points To New Highs
![](https://coin2049.io/wp-content/uploads/2024/07/LayerZero-from-Adobe-Stock.jpg)
LayerZero (ZRO) is currently experiencing strong bullish momentum, positioning itself for potential new highs in the future. This sustained upward trend indicates growing investor confidence and increased market interest in the platform’s capabilities.
As ZRO continues to gain traction, technical indicators suggest that this momentum could drive the price to unprecedented levels. Traders and investors are closely monitoring this movement, anticipating further gains and strategic opportunities as LayerZero pushes toward new market peaks.
This article delves into providing an in-depth analysis of ZRO’s current bullish momentum and its potential to reach new highs. By examining current price performance and technical indicators, this article seeks to provide strategic advice for investors looking to capitalize on ZRO’s potential growth.
ZRO was trading at around $4.15 and was up by 36.66% with a market capitalization of over $456 million and a trading volume of over $816 million as of the time of writing. There has been a 24-hour increase of 36.62% and 152.75% in ZRO’s market capitalization and trading volume respectively.
Analyzing The Current Bullish Trend Of ZRO
A technical analysis of ZRO’s price action on the 1-hour chart reveals that the crypto asset is actively bullish and trading above the 100-day Simple Moving Average (SMA). Since facing rejection at the $2.69 support level, ZRO has been consistently bullish and is currently attempting to break above the $4.28 resistance level.
The formation of the 1-hour William alligator signals that the price of ZRO may continue to extend its bullish trend as both the alligator lip and teeth are currently trending above the jaw after a successful cross above it.
On the 4-hour chart, it can be observed that ZRO is actively bullish. Although the price is attempting a short-term pullback by dropping a bearish candlestick, the crypto asset may extend its bullishness in the long run.
Additionally, the 4-hour William alligator indicates more bearishness for ZRO as both the alligator lip and teeth are actively trending above the jaw after moving above it.
ZRO Price Forecast
Analyzing potential future possibilities of ZRO’s price movement reveals that if the digital asset breaks above the $4.28 resistance level, it may move higher to challenge its all-time high of $5.62. If this level is breached, ZRO might move on to create a new all-time high.
However, if the price of ZRO experiences rejection at the $4.28 resistance level, it will begin to descend toward the $3.27 support level. Should the asset breach this level, it may continue to decline to test the $2.69 support level and possibly move on to test other higher levels if it breaches the $2.69 level.
Market
This Is How Ripple (XRP) Price Recovery Will Take Place
![](https://coin2049.io/wp-content/uploads/2024/05/bic_XRP-covers_negative.png)
Ripple (XRP) price momentum has turned bearish, and its potential for recovery has also cooled down.
One of the biggest reasons is the lack of activity among XRP holders, rendering their optimism useless.
Ripple Investors Try but Not Too Hard
XRP price is bound to be impacted by both the attempt and lack of participation noted among the investors. The presence of XRP holders remains weak, affecting the potential for recovery.
The low level of engagement is evident, with active addresses averaging under 20,000 on a daily basis. This lack of activity suggests a decrease in short-term trading and concern about bearing losses.
Read More: How To Buy XRP and Everything You Need To Know
![XRP Active Addresses.](https://beincrypto.com/wp-content/uploads/2024/07/XRP-Ledger-XRP-16.10.36-06-Jul-2024-850x288.png)
However, despite the weak participation, conviction among XRP holders remains strong. This is reflected in the Mean Coin Age (MCA), which has noted an uptick. The increasing MCA indicates that investors are holding onto their XRP for longer periods, showing faith in the asset’s future potential.
The rise in MCA also suggests that investors are refraining from moving their holdings around. By holding their assets rather than engaging in frequent transactions, they demonstrate a long-term belief in XRP. This behavior is often indicative of confidence in the cryptocurrency’s eventual recovery.
![XRP Mean Coin Age](https://beincrypto.com/wp-content/uploads/2024/07/XRP-Ledger-XRP-16.08.51-06-Jul-2024-850x288.png)
While the current low level of daily active addresses is a concern, the strong conviction shown by the uptick in MCA provides a silver lining. If this trend continues, it could help stabilize XRP’s price and support a potential recovery, as long-term holders typically contribute to market stability.
XRP Price Prediction: Tall Hike Ahead
The XRP price is trading at $0.43, recovering from the lows of $0.41 over the last 24 hours. Based on the aforementioned cues, consolidation is likely under $0.46. A breach, however, could help recover the recent losses.
Read More: Ripple (XRP) Price Prediction 2024/2025/2030
![XRP Price Analysis.](https://beincrypto.com/wp-content/uploads/2024/07/gHhYfbCA-850x363.png)
But if the bearish cues continue to dominate the altcoin, the XRP price could lose the critical support of $0.41 again. This would invalidate the bullish-neutral thesis, resulting in further drawdown.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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