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XYO Price Eyes 30% Surge After Launch of New Layer-1 Blockchain and XL1 Token

Published on: 17 September 2025

XYO Price Eyes 30% Surge After Launch of New Layer-1 Blockchain and XL1 Token

XYO Price Could Surge 30% After Layer-1 Blockchain and XL1 Token Launch

XYO Network has launched its purpose-built Layer-1 blockchain along with its native utility token, XL1, potentially setting the stage for a 30% price increase for XYO. The new blockchain aims to support data-heavy applications, and the XL1 token is designed to power transactions within the network.

XYO Network Launches Layer-1 and XL1 Token

On September 16th, XYO Network announced the launch of its Layer-1 blockchain, specifically designed for handling data-intensive applications in areas like AI, logistics, and real-world assets (RWA). This move comes after XYO determined that existing blockchain solutions couldn't meet its needs for a high-efficiency network capable of processing large volumes of real-world data.

Alongside the blockchain launch, the XYO team introduced XL1, a utility token designed to fuel the Layer-1's transactional activities. While the original XYO token will continue to be used for governance and staking, XL1 will serve as the primary currency for gas fees, smart contract execution, and on-chain rewards.

The mechanism for acquiring XL1 involves staking XYO tokens, locking them within the Layer-1 network. This process is intended to reduce the circulating supply of XYO over time, potentially bolstering its price.

XL1 Token Launch and Market Reaction

Shortly after its launch, XL1 was listed on several centralized exchanges, including Kraken, KuCoin, Gate.io, MEXC, and CoinDCX. The Token Generation Event established a total supply of 38 billion XL1 tokens, with an initial circulating supply of approximately 5.7 billion tokens.

XL1 initially launched at $0.0017, surging to a high of $0.0032 within three hours before experiencing a significant drop of over 51.5%. This crash is attributed to early investors and airdrop recipients taking profits, a common occurrence in the cryptocurrency market.

Despite the XL1 price drop, the original XYO token has seen positive movement, rising 6.5% over the past day, bringing its market capitalization to over $151 million. Technicians suggest that XYO may be poised for further gains due to renewed interest following the recent developments.

XYO Price Analysis and Potential Upside

Technical analysis of the XYO daily chart reveals a breakout from a descending trendline that had been forming since mid-July, following news of the Layer-1 network and XL1 token launch.

The breakout from the descending trendline often signals a shift from bearish to bullish momentum. Further supporting this bullish outlook, XYO price has flipped the 50-day simple moving average at $0.010 into a support level, indicating a change in short-term sentiment. The Aroon Up indicator shows a reading of 100%, while the Aroon Down remains at 28.57%, suggesting dominant bullish momentum.

Based on these technical indicators, XYO is likely to continue its rally and test the $0.011 level, which aligns with the 23.6% Fibonacci retracement level. A break above this resistance could lead to a rally towards $0.013, representing a nearly 30% increase from current levels. However, a drop below the 50-day moving average would invalidate the bullish setup and potentially lead to a bearish reversal.

Kraken Listing Announcement for XL1

Kraken listed XL1 on September 16, 2025, initially in post-only mode. This listing is expected to potentially increase investor interest and trading volume for XL1, as Kraken is a well-respected platform. Listings on major exchanges like Kraken often attract more attention and demand. Traders should exercise caution as prices can be volatile after new listings.

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