Why XTZ failed to put up a bold front despite Tezos’ striking performance
- Messari’s latest report stated that Tezos saw a favorable Q2 albeit with roadblocks
- Despite that, XTZ favored the bulls and indicators didn’t show any signs of a reversal in the near future
Tezos [XTZ] witnessed a great Q1 thanks to the explosion of NFTs and DEX activity on the chain as reported by AMBCrypto. Additionally, Tezos stayed true to its path and continued to grow in Q2 as per this latest tweet from Nick Garcia, an analyst at MessariCrypto.
State of Tezos Q2 2023@tezos is making significant progress in its rollup roadmap, with the introduction of WASM rollups and an EVM-compatible rollup on testnet.
The 14th upgrade, Nairobi, is now live and Tezos core developers unveiled the Data Availability Layer (DAL).
— Nick Garcia (@NickDGarcia) July 27, 2023
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As per recent data, Tezos managed to display some stability in terms of its activity as compared to Q3 and Q4 2022 and Q1 2023. Additionally, Tezos account-related metrics showed moderate performance from the network in Q2 2023.
Recall that Tezos witnessed an extremely strong performance in Q4 of 2022 and Q1 2023.
On the development front, the launch of the Mumbai upgrade and Smart Contracts Optimistic Rollup functionality could prove beneficial for Tezos. This is because the launch is expected to surge the number of developers flocking to the network. This was surely a positive development for the growth of the chain.
However, as per Messari, the network did witness a drawback on the financial front. Tezos’ circulating market cap went up from $0.3 billion in Q4 2022 to $1.03 billion. This accounted for a 54.5% surge in the circulating market cap.
However, in Q2 2023 Tezos’ market cap witnessed a 30% drop and stood at $0.72 billion. This wasn’t a great sign for the network.
It’s all red for XTZ
If XTZ’s plummeting market cap wasn’t enough, its performance on the daily chart screamed bears. At press time, the altcoin was exchanging hands at $0.792 and was almost 3% lower than its opening price for the day.
Additionally, a look at market indicators also showed that the XTZ was under the influence of the bears. The Relative Strength Index (RSI) stood at 43.30 and has been on a downward trajectory since 13 July.
How much are 1,10,100 XTZs worth today?
The Money Flow Index (MFI) too headed south indicating the outflow of money from the asset. To add to the misery, XTZ’s Moving Average Convergence Divergence (MACD) indicator also saw a bearish crossover on 23 July.
Despite the disappointing performance on the price front, Tezos still managed to maintain its dominance in ecosystem growth. As per Messari, Tezos witnessed a rise in its total value locked (TVL), users, and stablecoin growth.
Additionally, NFT marketplaces continued to stay in the lead despite declining activity on the NFT front.