3 Reasons Behind The Sudden Urge In Tezos Prices

Tezos is a proof of stake (PoS) blockchain, similar to Cardano (ADA) and Solana (SOL). It is, however, designed to evolve without the need for a so-called hard fork. A hard fork is a significant modification to a network’s protocol that renders previously invalid blocks and transactions valid, or vice versa, in the scope of blockchain technology. All nodes or users must update to the current version of the protocol software in a hard fork. Otherwise, there is a schism in the community and network. For example, Bitcoin Cash (BCH) was created as a result of a Bitcoin hard fork (BTC).

1- Upgrade In Protocol lowers transaction costs

Tezos is a self-modifying blockchain that can be improved without a hard fork in the future. Since its creation, the Tezos network has undergone seven successful upgrades, three of which happened in 2021. On August 6, the most current “Granada” upgrade took place. Improvements in this latest patch, according to the development team, include a reduction in block time from 60 to 30 seconds and a reduction in smart contract gas consumption by an average of 3 to 6. 

In addition, the latest upgrade introduced “liquidity baking,” which encourages significant quantities of decentralized liquidity between XTZ and tzBTC by minting a small amount of XTZ on each block and depositing it in a smart contract.

2- Good Tezos news as the result of bank adoption

The adoption of Tezos by digital asset startup Crypto Finance AG and Swiss business-to-business transaction bank InCore was a second development that helped enhance the Tezos price and awareness. Both parties intend to introduce a new tokenization tool to the network. A new Tezos token standard for asset tokenization has also been established by the two firms. The DAR-1 token standard is a new standard that will enable the unlocking of new smart contract-enabled functionalities to facilitate anti-money laundering and asset governance activities. 

3- XTZ Coin Staking Reduces Circulating Supply 

Tezos’ pricing appears to benefit from appealing staking chances as well. Indeed, to encourage consensus in exchange for staking rewards, most of the XTZ has been taken from circulation. 

The current annualized rate for token holders delegating their XTZ is 7.85 percent, according to StakingRewards data. More tech-savvy individuals can open their own “Tezos Bakery” and make 8.73 percent. 

Delegating XTZ Coin is simple for the typical user and may be done via any of the project’s approved wallet interfaces. In addition, several exchanges charge a nominal fee for staking services. Coinbase, Kraken, and Binan are among them.

Tezos’ pricing appeared to be aided by tempting staking opportunities. The majority of the XTZ has been removed from circulation in order to encourage consensus in exchange for staking rewards. 

According to StakingRewards data, the current annualized rate for token holders delegating their XTZ is 7.85 percent. Individuals who are more tech-savvy can open their own “Tezos Bakery” and earn 8.73 percent. Despite all of it, investments in Tezos should be taken with scrutiny and meticulousness.