TOP 3 factors, thanks to which the price of XTZ increased by up to 150%
3 min read
ETH network is currently the dominant first layer protocol in terms of the deployment of smart contracts. However, competing protocols are gaining in popularity by offering less expensive transactions. In addition, they speed up the time to confirm the transaction. One of the projects that has been on the rise for the last month is Theses, a proof-of-stake blockchain network. It is designed to evolve over time without the need to complete a hard fork.
Data from TradingView shows that the price has climbed since July 21 about 150% up. Its 24-hour trading volume rose above $ 1 billion.
So let’s look at three main reasons, which is behind the growth of this token:
- network improvements through the recent “Granada” upgrade
- adoption of the Tezos network by several large banking institutions
- attractive deposit rewards that entice token holders to deposit coins
Updating the log reduces transaction costs
As already mentioned, the Tezos network is a self-service blockchain that can be updated over time without a hard fork. In total, the network has undergone seven successful updates since launch, three of which occurred in 2021. Last update “Granada“Was implemented on August 6.
Tezos 7th Upgrade ‘Granada’ Is Now Live!
MEmmy * consensus, cutting block times by 50%
🔥Gas improvements, massively reducing gas consumption in smart contracts
✅Liquidity baking, leveraging governance mechanism and incentives to provide for public goods#Tezos #Granada pic.twitter.com/IL4zJBe9oU
– Tezos (@tezos) August 6, 2021
Some of the improvements to this recent innovation include shortening the blocking time from 60 seconds to 30 seconds and reduction of gas consumption smart contracts on average 3 to 6 times. The new update also introduced liquidity, which stimulates a large amount of decentralized liquidity provision between XTZ and tzBTC.
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Tezos adopted by large banks
The second factor that helped increase the price was the adoption of Tezos by the company Crypto Finance AG and a Swiss bank InCore. Both plan to launch a new tokenization tool on the network.
Thank you #InCoreBank and @inacta for another successful collaboration project! The innovative and compliant standard for asset #tokenisation of financial products (FA2) we have enabled together on @tezos is definitely shaping the #blockchain industry.https://t.co/vEENshU4Kh
– Crypto Finance (@CryptoFinanceAG) August 24, 2021
Both companies have also developed a new standard for Tezos tokens for asset tokenization called DAR-1 token standard. This will unlock new features with the support of smart contracts that support financial markets. InCore has also revealed that it will launch institutional deposit and trading services for XTZ. This will give financial institutions the ability to stake for their clients’ assets.
Attractive rewards
It seems that most XTZ tokens have been removed from circulation due to staking in order to receive rewards. According to StakingRewards, the current annual rate for token holders offering their XTZ is 7.85%.
Tezos supply statistics. Source: TZStats
At the time of writing, data from TZStats suggest that 77.65% of XTZ’s total supply is actively invested in the network. This significantly limits the number of tokens available on the market and is a potential source of positive price pressure.
