XTZ, the native cryptocurrency on the Tezos blockchain is currently one of the few top cryptocurrencies that are in the green while the rest of the market struggles to recover from the bearish downturn that occurred earlier this week.
XTZ is currently trading at $6 after rallying by 30.38% in the last 24 hours and it is up by 13.66% in the last 7 days. This is a refreshing turn of events since it is one of the cryptocurrencies that is overshadowed by the bigger players in the crypto market. However, a look at its performance in the last few months reveals that it has so far achieved a significant recovery.
Source: Binance
XTZ bottomed out at $2.09 in July during the last bear run but it has since then recovered and even managed to set a new high at $6.53 earlier today. However, it is still trading significantly lower than its all-time high of $8.42 which it achieved in May at the peak of the previous bull run. Its current rally reflects an increase in buying volume and it will likely maintain the current trajectory for a while longer given that it is currently just recovering from the oversold zone after the recent price dip according to the RSI.
XTZ seems to be finding favor with the cryptocurrency market and this comes just hours after it was announced that the Tezos blockchain closed a major transaction milestone of 400,000 transactions in the last 24 hours. The transactions are slightly over 35% of the transactions taking place on the Ethereum blockchain, suggesting that Tezos has experienced a substantial increase in demand for its network.
Higher network demand has positive implications on the price of XTZ which has multiple use cases on the proof of stake network such as banking, governance, and paying for transactions. The rapidly growing transactions on the network reflect the robust network adoption that it has enjoyed in the last few months thanks to the onboarding of decentralized projects. Consequently, the transaction announcement made the retail market realize that XTZ has not been receiving as much attention as it should and thus the healthy uptick in its price while most of the top cryptocurrencies struggle to overcome the downward pressure.
Favorable network adoption is one of the factors that attract retail traders to a cryptocurrency especially as it also has solid tokenomics. Tezos currently has a market cap of $5.16 billion which is still significantly lower than the industry leader Ethereum. XTZ has a circulating supply of 858 million coins and a total supply of 888.5 million coins.
Tezos has a favorable outlook thanks to quality projects rolling out on its network. For example, it has an upcoming DeFi lending protocol called TezFin which is similar to AAVE. The blockchain was recently selected to provide smart contract support for major European banks, thus allowing to leverage strong demand from the banking industry.
Tezos is also tapping into the NFT market which is currently one of the fastest-growing segments. One of its projects called oneOf has a plan to take the music industry by storm and it will also incorporate NFT technology. It looks like Tezos is rapidly growing and this will contribute to more value for the XTZ token in the future.
Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.
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