Bitcoin may be at the center of crypto enthusiasts’ attention as of late due to the recent halving, but it’s not the only coin that’s on a bull run. Tezos (XTZ) – the tenth largest cryptocurrency by market cap – has lots of fans going crazy about where it will go, as it has already risen by more than 80% since the beginning of the year.
Tezos Is Getting a Solid Reputation
At the time of writing, Tezos is trading for just over $2.50. That’s about 85 percent higher than where it stood during the early stages of 2020. As it stands, the currency has an overall market cap of nearly $2 billion. In addition, the currency initially began the year as the 15th largest token in the market but has since spent the last five months moving up five full spaces. So basically, it’s moved up one space per month. Not a bad record considering it doesn’t have anywhere near the market cap of bitcoin or Ethereum.
Many analysts have jumped on the news and believe Tezos is on to something huge. Mati Greenspan – the founder of Quantum Economics and a former analyst at the crypto exchange e-Toro – stated in an interview:
Tezos seems to be one of the most popular platforms for new projects to build on. Several projects that I’m currently advising are using it. As well, the tokenomics are structured in a way that a lot of the incoming supply is diverted to staking and taken off the market.
Greenspan also claims to have Tezos in his crypto portfolio.
There is some truth to his statement. Tezos and EOS have become extremely popular platforms for building new blockchain products and tokens. In many ways, the asset has offered some tough competition to Ethereum, which at one time was the most popular platform for new tokens and distributed ledger protocols.
However, Ethereum has suffered over the past few months due to the heavy traffic congestion it’s been dealing with. Ethereum has proven so popular that it seems every developer and their mother want to make something atop the Ethereum blockchain. This has caused the network to become overstuffed, resulting in high gas fees and low transaction times. Co-creator Vitalik Buterin has commented in the past that Ethereum is no longer scalable, and that he hopes the introduction of Ethereum 2.0 makes some of these problems go away.
You Don’t Mine It; You Stake It
Tezos holders can also stake their tokens and earn interest of sorts. Joe DiPasquale – the chief executive of hedge fund manager Bit Bull Capital – says:
Tezos is not a proof-of-work based coin, so it can’t be mined. However, it is one of the more promising projects to come out of the initial coin offering-era, which gives it an edge in times such as these.