TLDR:
The evolution shown by Tezos has focused on its technical infrastructure and the consolidation of real-world assets (RWA). The recent Tezos Q1 report, published by the analytics firm Messari, details the financial status of the blockchain protocol and the progress toward the Tezos X architecture in the first three months of the year 2026.
Messari’s “State of Tezos Q1 2026” report is out.
Q1 saw significant advances to the Tezos X roadmap and expanding the ecosystem across DeFi, RWAs, and developer tooling.
Highlights from the quarter:
Ushuaia entered stabilization with a 15x DAL bandwidth expansion
— Tezos (@tezos) May 15, 2026
On January 24, 2026, the network executed its twentieth upgrade named Tallinn. According to the Messari report, this modification directly implemented three structural changes in the base layer: the reduction of block times to 6 seconds, an address indexing registry to lower storage costs, and the technical framework for block validations by all active bakers.
On the other hand, on March 19, 2026, the Ushuaia upgrade proposal entered its stabilization phase. Official developer documentation indicates that this change seeks to increase the bandwidth capacity of the Data Availability Layer (DAL) by approximately 15 times, raising the limit from the current 0.66 MB/s to 10 MB/s. This increase in transmission capacity is presented as a necessary step to support the data flow coming from the layer-2 Etherlink.
The macroeconomic environment affected the network’s capitalization metrics. The data provided shows that the circulating market cap of XTZ contracted by 28% compared to the previous quarter, reaching a value of $380.7 million. Similarly, the average monthly price suffered consecutive declines, dropping from $0.56 in January to $0.37 at the close of March.
Despite the drop in prices, community staking activity remained on the rise. The total XTZ locked in the network increased to 660.3 million units. According to the report’s analysis, this increase pushed the staking rate to 61.1%, a figure that exceeds the 50% target set by the protocol’s Adaptive Issuance mechanism.
In the decentralized finance sector, the total value locked (TVL) in the layer 2 of Etherlink experienced a generalized pullback of 27.2%, standing at $49.7 million. However, certain specialized sectors showed a behavior opposite to the market trend. The tokenized commodities platform Uranium.io accumulated positive growth and expanded its share within the Etherlink DeFi ecosystem to 14.7%.
At this time, the community debate focuses on a proposal presented by Nomadic Labs on March 3, 2026. This initiative proposes reducing the network’s governance cycles from 70 to 28 days. It is projected that if the validators’ vote approves the measure, the time required to implement and activate technical changes on the mainnet will decrease considerably in the second half of the year.
