On September 16, DePIN platform XYO Network unveiled its first Layer‑1 blockchain, designed specifically to handle data-intensive applications across sectors such as AI, logistics, and real-world assets (RWA).
Unlike general-purpose blockchains, XYO Layer‑1 is engineered to deliver verifiable and scalable data solutions for both enterprise and consumer use cases. The team reportedly chose to develop a dedicated blockchain after finding existing networks insufficient for managing high volumes of real-world data efficiently.
Alongside the Layer‑1 launch, XYO introduced XL1, a utility token intended to power transactional activity on the new network. While the original XYO token will continue to serve governance and staking purposes, XL1 will act as the native currency for gas fees, smart contract execution, and on-chain rewards.
XL1 tokens are distributed through XYO staking, which locks the original XYO tokens within the Layer‑1 network. This mechanism reduces XYO’s circulating supply over time, potentially supporting long-term price appreciation.
Shortly after launch, XL1 was listed on multiple major centralized exchanges, including Kraken, KuCoin, Gate.io, MEXC, and CoinDCX. The Token Generation Event set a total supply of 38 billion XL1 tokens, with an initial circulating supply of approximately 5.7 billion, which remains unchanged at press time.
XL1 debuted at $0.0017 and spiked to $0.0032 within the first three hours, before dropping over 51.5% later in the day, likely due to early investors and airdrop recipients selling to secure profits—a common occurrence in crypto markets.
Meanwhile, the original XYO token gained 6.5% over the past day, pushing its market cap above $151 million. Analysts now suggest it could see further upside, fueled by renewed trader interest following these developments.
XYO Price Analysis
On the daily chart, XYO had been forming lower highs and lower lows since entering a downtrend in mid-July. However, it recently broke above its descending trendline following news of the Layer‑1 and XL1 token launches, signaling a potential trend reversal.
A breakout above a descending trendline often signals a shift in momentum from bears to bulls, and XYO appears to be showing just that.
The token has also flipped its 50-day simple moving average (SMA) at $0.010 into support, suggesting that short-term sentiment has turned more favorable.
Further confirming the bullish outlook, the Aroon Up indicator reads 100%, while Aroon Down sits at 28.57%, highlighting that bullish momentum is dominant and that XYO has been making new highs more frequently than lows.
Given these technical signals, XYO is likely to continue its rally toward $0.011, which aligns with the 23.6% Fibonacci retracement level. A successful break above this resistance could push the token further to $0.013, representing a potential 30% upside from current levels.
However, a drop below the 50-day SMA would invalidate this bullish setup, increasing the likelihood of a bearish reversal.
