Tezos (XTZ) has recently performed above average and yesterday also temporarily exceeded the psychologically important mark of 4 US dollars. What is behind the positive trend for Tezos?
Tezos (XTZ) reports back in the concert of the most popular cryptocurrencies: Until a negative trend set in for the crypto market in the night before today, Tezos was able to increase in price by 17 percent in the previous 24 hours and also cracked the 4 US dollar mark in the process. In parallel, trading volumes on XTZ increased significantly. Experts cite two main reasons why the future prospects for Tezos have improved and XTZ is becoming more attractive:
1. The topic of energy efficiency has become a strong factor in the public discussion about Bitcoin and Co. Prompted not least by Tesla and Elon Musk, more and more people understand that Bitcoin (BTC) with its proof-of-work protocol consumes large amounts of energy, which is often produced from fossil sources such as coal. In China, mining and trading of Bitcoin has therefore been placed on a list of “dirty industries” to be watched more closely. In turn, eyes are turning to altcoins that use proof-of-stake in the protocol, which is much more energy efficient. At its launch in late 2017, Tezos was one of the first cryptocurrencies to be organized based on proof-of-stake. Thus, when looking for alternatives to Bitcoin, XTZ comes into play almost automatically.
2. Non-fungible tokens (NFT) are hot in the crypto industry. Here, Ethereum (ETH) is often the underlying cryptocurrency in whose blockchain the unique tokens with collectible value are created and traded. But NFTs under Ethereum have the minus of high transaction fees and ETH, like Bitcoin, is not exactly environmentally friendly in principle through proof-of-work. The US art magazine “Art of America” reports that the NFT platform “Hic et Nunc” (“Here and Now”) has recently overtaken the previous market leader Opensea in the number of daily active users. “Hic et Nunc” relies on Tezos as its technological base, while Opensea focuses on Ethereum.
Conclusion: Tezos benefits from current developments
Against this backdrop, the outlook for XTZ has become understandably more positive. Tezos can prove the two big current topics of energy hunger and NFTs with good arguments in its favor. Incidentally, Tezos was highly visible around the world this Formula 1 weekend: because Sergio Pérez’s race car, which rolled across the finish line first at the Azerbaijan Grand Prix, is equipped with the Tezos logo.
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