Tezos releases new update for Mumbai Protocol- Will XTZ benefit?

• The Baking Sheet mentioned the release of Tezos’ new Octez v16.1 network upgrade.
• However, XTZ’s price was under the bears’ control as it was down by 8% about over the last week.  

Tezos [XTZ] posted its latest edition of The Baking Sheet, mentioning major developments in the ecosystem. The highlight of the report was the updates related to the Mumbai protocol.

Realistic or not, here’s XTZ market cap in BTC‘s terms

New update for Mumbai Protocol 

Tezos released a new update named Octez v16.1 for the Mumbai protocol. This was a major release as it corrected an implementation flaw in the new Mumbai baker binary that could occasionally cause bakers to incorrectly endorse blocks and deteriorate network liveness.

As per the official announcement, Tezos recommended bakers to upgrade to version 16.1. before the activation of Mumbai on block 3,268,609.

Other notable developments 

Apart from the Octez update, another major update was pushed last week for TzKT Explorer, which came with support for the Tezos Mumbai Protocol.

The update included Smart Optimistic Rollups support, new types of operations for rollups, non-voted bakers during voting periods, and several other features.

Additionally, it was also revealed that Serokell, a software development company, will be collaborating with the Tezos Foundation. With this partnership, Tezos and Serokell will be focusing on the most popular and in-demand tools and libraries within the Tezos ecosystem.

However, XTZ failed to respond 

While updates related to the Mumbai protocol were promising for the blockchain, XTZ’s price action was not in investors’ favor. According to CoinMarketCap, XTZ was down by nearly 9% over the last week, and at press time, it was trading at $1.12 with a market cap of $1.045 billion.

XTZ’s daily chart revealed a bearish advantage in the market and suggested that investors can expect a few more sluggish days ahead.

At the time of the press, the MACD displayed a bearish crossover. XTZ’s Chaikin Money Flow (CMF) and Relative Strength Index (RSI) both went sideways suggesting bearish momentum.

Lastly, the Money Flow Index (MFI), after registering an uptick, later followed the RSI. Thus, increasing the chances of less volatile days in the near term. 

How much are 1,10,100 XTZs worth today?

Will the metrics help?

Though the price action was bearish, things in terms of on-chain performance seemed fine. Thanks to the recent network update, XTZ’s development activity increased over the last few days.

Not only that, but XTZ also noted growth in terms of popularity, which was evident from its social dominance. However, it was surprising to see that despite increased development activity, XTZ’s total code commits declined over the last month.