Tezos (XTZ) Price Prediction

Deep Dive

1. Etherlink’s DeFi Momentum (Bullish Impact)

Overview:
Tezos’ EVM-compatible Layer 2, Etherlink, hit $60M TVL in September 2025 after Curve Finance and stXTZ liquid staking launches. The $3M Apple Farm incentives program has spurred activity, with protocols like Midas and Superlend attracting institutional RWA tokenization.

What this means:
Higher TVL and Ethereum-compatible tooling could funnel liquidity from larger chains. If Etherlink sustains 6,200% QoQ TVL growth (Messari), XTZ may see demand as the base-layer asset for bridging and staking.

2. Seoul Protocol Upgrade (Bullish Impact)

Overview:
The September 2025 Seoul upgrade introduced native multisig support (critical for institutions) and slashed validation costs by 63x. It also simplified unstaking, reducing friction for retail participants.

What this means:
Enhanced security and efficiency could position Tezos for enterprise adoption, particularly in tokenized uranium and RWAs. Historically, major upgrades like Rio (May 2025) correlated with 21% weekly XTZ rallies (CCN).

3. Altcoin Sentiment Headwinds (Mixed Impact)

Overview:
The crypto Fear & Greed Index sits at 43 (Neutral), while Bitcoin dominance (58.1%) limits altcoin upside. XTZ’s 30-day volume fell 9.9%, signaling weaker momentum.

What this means:
Tezos’ -14.7% 60D return underperforms ETH (-7.9%) and SOL (+12.1%), suggesting it needs sector rotation or a narrative shift (e.g., RWA traction) to decouple from broader alt stagnation.

Conclusion

Tezos’ price hinges on Etherlink’s ability to sustain DeFi growth and Seoul’s institutional adoption against a cautious macro backdrop. Watch the XTZ/tzBTC pair’s liquidity and whether TVL rebounds post-Apple Farm incentives. Can Tezos leverage its governance edge to outpace L2 rivals?