Why Tezos Is Up 13%
KEY POINTS
- Tezos is a blockchain designed to evolve and upgrade without the need for a hard fork.
- Last year, the token skyrocketed and many collaborators and builders jumped on board.
- Tezos is still sitting comparatively low, but could have what it takes for a comeback.
Tezos is up today but still a far cry from its all-time high.
Tezos refers to itself as a blockchain designed to evolve. It is an open-source platform that addresses some of the main roadblocks deterring a more widespread embrace of cryptocurrency. In an effort to distinguish itself from early blockchain tech, such as the proof-of-work concept used by Bitcoin and Ethereum, Tezos uses a proof-of-stake method. This reduces the amount of energy and money needed to operate, thus making it more energy-efficient. This is key for scalability as Web 3 becomes a more widely embraced aspect of life. The network is self-upgrading, which means it is designed to evolve over time without having to hard fork.
Past performance
Tezos saw major growth in the second half of 2021. As the need for NFT platforms grew, Tezos' "Smarter Smart Contract" technology became extremely valuable. These contracts are also secure and reliable, using formal verification that mathematically verifies each one. And because Tezos is designed to self-amend, new upgrades improve transaction fluidity and speed, seamlessly. Coin Metrics cited the Granada upgrade as a main factor toward Tezos growth last year saying, "Daily transactions jumped in August of 2021 as Tezos launched an upgrade that cut average block times in half."
That's right, the upgrades reduced the block time from 60 seconds down to 30 seconds, and reduced the smart contract gas consumption by 3-6 times. This came at a key point when NFT sales were skyrocketing.
This was when Tezos had its most dramatic growth, going from $3.3455 on Aug. 11, 2021, to its all-time high of $8.703 less than two months later on Oct. 2, 2021. The eco-friendly algorithm, smarter smart contracts, and scalability attracted not only validators, researchers and builders, but also a community of artists and collaborators looking to trade on the platform.
Possible future
However, these gains and successes were last year and this year has been a tough one for cryptocurrencies across the board. Tezos saw its 2022 high on Jan. 4 at $5.2056, but more recently on May 12, it hit its low at $1.5789.
Today it went up 13% to hit $2.1316. So although it may be only a slight rise, overall Tezos is experiencing the bear market with other companies. Many people are hopeful for Tezos to be a key player in the next bull run because of its efficient and scalable technology, but it is certainly not seeing any record highs at this time.
Our Research Expert
Katie Clinebell is a freelance content creator and digital marketing strategist for FinTech, blockchain, and crypto brands. She has created award-winning campaigns for Snapple and Tai Pei Frozen Asian Food and received an Adobe Academic Achievement Award for content about Olympic athletes.
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