Tezos price continued crashing this week as concerns about the platform’s growth remains. The XTZ token was trading at $1.33, which is the lowest level it has been since June this year. It has plummeted by more than 70% this year and by 85% from its all-time high. Tezos has a market cap of more than $1.2 billion, making it the 42nd biggest coin in the world.
Tezos is one of the oldest smart contract platforms in the world. It competes with the likes of Ethereum, Cardano, and Solana. According to DeFiLlama, its market share in the DeFi industry has crashed to just $50 million. And a bulk of this volume is made up of Youves, which has a market dominance of 78.15%
Tezos is known for its large partnerships with the likes of Manchester United, McLaren Racing, Redbull Racing, Ubisoft, and Misfit Games. It helps to power these organizations’ NFTs. Recently, however, the total volume of Tezos NFTs has crashed hard.
According to CryptoSlam, the volume of its NFTs peaked in October last year at $9.88 million. In September, it handled NFTs worth about $1.33 billion. This is one reason why the XTZ price has crashed this year.
Another reason is that competition in the smart contract industry has increased lately. Some of its biggest competitors are platforms like Solana, BNB, and Cardano.
The daily chart shows that the XTZ price has been in a strong bearish trend in the past few days. It has fallen by more than 70% this year. Along the way, it crashed below all moving averages while the Relative Strength Index (RSI) has been in a downward trend. It has also formed what looks like an inverted V pattern.
Therefore, the coin will likely continue falling as sellers target the next key support level at $1.18. A move above the resistance point at $1.410 will invalidate the bearish view.
This post was last modified on Oct 20, 2022, 07:29 BST 07:29