Why Tezos Jumped Up 85% This Month?
Over the past month, the Proof of Stake blockchain network Tezos (XTZ), which can be upgraded over time without the need for a hard fork, has been gaining popularity.
TradingView data shows that since hitting a low of $2.09 on July 20, the XTZ price has risen 165% to a high of $5.53 on August 27. Its 24-hour trading volume is up over $1 billion.
The reasons for this growth of XTZ over the past month are the improvements made to the network during the last Granada update, the adoption of the Tezos network by several major banking institutions, and attractive staking rewards.
Overall, the Tezos network has experienced seven successful updates since launch. Three of them happened in 2021. The last one, “Granada” update, was on August 6, 2021.
According to the Tezos team, this update includes a reduction in blocking time from 60 seconds to 30 seconds and a reduction in gas consumption by smart contracts by an average of 3-6 times.
In addition, a liquidity bake was introduced that “encourages the provision of large volumes of decentralized liquidity between XTZ and tzBTC by minting a small amount of XTZ per block and depositing it under a permanent product marketing smart contract”.
Also, the increase in value could have been influenced by Tezos’ adoption of digital assets by Crypto Finance AG and the Swiss bank of inter-corporate transactions InCore.
They have developed a new Tezos token standard for asset tokenization, dubbed the DAR-1 token standard, which will unlock new smart contract-enabled features that support financial markets, including anti-money laundering (AML) capabilities and asset management.
InCore also announced that it will launch institutional grade storage, staking and trading services for XTZ.
Another reason for the increase in value was the reduction in the circulating number of XTZ tokens due to the attractive staking conditions.
According to StakingRewards, the current annual rate for token holders who delegate their XTZ is 7.85%, while those more tech-savvy can mint Tezos and earn 8.73%.
The XTZ delegation process is simple for the average user and can be done from any wallet interface the project offers, and several exchanges also offer staking services for a small fee, including Coinbase, Kraken, and Binance.
At the time of writing, TZStats data shows that 77.65% of the total XTZ supply is actively hosted online.