Tezos (XTZ) had a great year through 2019. It is one of the few tokens which performed well this year. Coinbase is one of the largest validators of Tezos with 30.6 million XTZs. With increasing numbers of cryptocurrency exchanges offering staking services, Coinbase is the largest validator of the Tezos network.
Considering the current trend to continue, very soon, we will be able to see cryptocurrency exchanges dominating the top validators list. Those companies who are offering Staking as a service are likely to suffer. Eventually, exchanges will compete to provide zero-fee Staking. Exchanges will be able to cross-subside from their trading business. However, in the long run, this will bring in problems related to decentralization for Tezos and similar networks.
The current trends for Tezos are positive. Exchanges are to buy stakes in Tezos. With increased buying pressure, Tezos will rise in the long run. The value of the XTZ has risen by 42% over the past 30 days alone. There has been a phenomenal gain for XTZ by 241 percent.
Tezos climbed to be in the top 10 in terms of market capitalization. Binance and Coinbase introduced staking for XTZ. Further, Kraken extended their support for staking a few days ago.
One of the tweets stated: “Coinbase has now overtaken Polychain Labs as the largest validator on Tezos.”
Coinbase had to buy additional Tezos to provide its staking service. The primary reason being how the Tezos Proof of Stake (PoS) works. If exchanges should participate in the Staking, they need to holdXTZ. Of note, Coinbase should buy XTZ tokens to sustain their staking rights and to sustain with stakes to pay out to their users.
On December 09, 2019, the trend was like: “Coinbase still needs to purchase 1.3 MILLION XTZ for its staking operation or else forfeit its staking rights. And you aren’t buck wild bullish?”
Staking is evolving to be a new trend for cryptocurrency exchanges. Several cryptocurrency exchanges are introducing their stakes in different coins. Binance is currently offering stakes for nearly nine coins, which consists of ATOM, TRON, Algorand, Qtum, and Tezos. The incentive for the Staking is the commitment they get from their customers.
XTZ is close to Stellar, probably will achieve a flipping. The expectations for future appreciation are increasing. The XTZ adoption is getting wider despite initial skepticism.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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