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Why Tezos, Avalanche, and Canaan Are All Up This Week

By Zhiyuan Sun – Aug 27, 2021 at 1:11PM

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The cryptocurrency industry is witnessing yet another bull run.

What happened

Cryptocurrency tokens Tezos (XTZ 1.42%) and Avalanche(AVAX 3.92%) and shares of cryptocurrency mining solutions provider Canaan (CAN 1.27%) are up 40.33%, 29.43%, and 21.46%, respectively, in the past seven days. They are now respectively trading at $5.20 per token, $46.90 per token, and $9.79 per share as of 10:30 a.m. EDT today. The foundations behind the assets all saw major developments this week.

So what

First of all, on Wednesday, Crypto Finance Group, InCore Bank, and Inacta selected the Tezos network to power their digital finance products with full regulatory compliance. In addition, InCore Bank launched storage, trading and staking for Tezos. Similar to Ethereum, Tezos powers smart contracts on its blockchain. However, the network does not require controversial hard forks to improve its functionality. Users can vote on protocol amendments put forth by developers in a way that resembles true "blockchain democracy."

Large blockchains breaking into smaller ones in space.

Image source: Getty Images.

Next up, Avalanche is launching a $180 million incentive program for decentralized finance (DeFi) networks. One of the first to join was decentralized exchange (DEX) SushiSwap, which handled more than $170 million in trading volume in the past 24 hours. Like Tezos, Avalanche is a smart contract network but explicitly designed to launch decentralized applications (dapps). 

Lastly, China-based computing solutions provider Canaan has had exceptional performance in the past month. Since the beginning of August, the company has secured more than 21,000 orders of its Bitcoin mining machines. Its Avalon 1166 Pro has a hash rate of 81 terahash per second, which is just about on par with that of the world's most cutting-edge Bitcoin mining GPU, the Antminer S19, with its 95 terahash per second performance. At Bitcoin's current level, miners can earn up to $7,000 per year per Avalon 1166 after electricity costs. 

Now what 

The future is bright for all three assets. Tezos is launching its own non-fungible tokens trading platform on the network. NFT sales were virtually nonexistent two years ago but surpassed the $1 billion trading volume milestone in August. Meanwhile, it's been less than two weeks after its launch, and Avalanche's new DeFi protocol already has already surpassed $1 billion in pledged cryptocurrencies. Finally, a golden window of opportunity is opening up for Bitcoin mining after the network's mining difficulty dropped substantially after China banned the practice in its borders. Consider adding all three promising cryptocurrency assets to your watch list

Zhiyuan Sun owns shares of Avalanche. The Motley Fool owns shares of and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Tezos Stock Quote
$1.01 (1.42%) $0.01
Canaan Inc. Stock Quote
Canaan Inc.
$2.40 (1.27%) $0.03
Avalanche Stock Quote
$12.97 (3.92%) $0.49

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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