What happened
Among the top cryptocurrencies investors are placing bullish bets on today is Tezos (XTZ -3.26%). As of 10:15 a.m. on Tuesday, Tezos was up 8% over the past 24 hours, surging to its highest levels in more than a week. In fact, most of 2022's gains for Tezos have been seen over the past 24 hours alone.
This move comes following a very strong 2021, which saw Tezos roughly double. It has been picked up by a number of institutional players in the security token space, including tZERO and Elevated Returns, two major exchanges using the Tezos blockchain. Additionally, a number of high-profile marketing partnerships, non-fungible token (NFT) projects, and developers enhanced the value of the Tezos ecosystem last year. This momentum appears to be spilling over into 2022.
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So what
Among the key factors driving a bullish outlook for Tezos is the upcoming launch of Tenderbake. This major upgrade is expected to improve security and drive better performance.
Tezos is a security token, a term that refers to the digitization of real assets on the blockchain (also called tokenization). Tezos has become a leader in this regard due to its blockchain's self-amending nature. That is, Tezos doesn't need to hard fork to activate protocol updates. That's a pretty big differentiator in the crypto world.
As Tezos continues to improve its blockchain with its Tenderbake update, the bull thesis for this token is likely to get stronger.
Now what
Among tokens with a strong outlook for 2022, Tezos is one I remain bullish on. I've been long Tezos for some time, due to this network's self-amending properties and the growth of tokenization broadly. As the security token market grows, I expect to see it become the platform of choice for partners looking to launch various financial products on the blockchain.
Like all cryptocurrencies, Tezos carries a higher risk profile, and this is a small position for me. But if it can continue to grow rapidly and eat up market share in this niche of the crypto world, its valuation looks appealing.
