3 reasons why Tezos (XTZ) price broke its downtrend with a 50% rally
Aside from the price of Bitcoin reaching new highs in 2021, the creation of a massive decentralized finance (Defi) ecosystem and the increasing popularity of nonfungible tokens (NFTs) has catapulted blockchain technology into the mainstream in a way that appears assured to secure broad adoption.
Tezos (XTZ), a layer-one smart contract protocol capable of expanding its network without requiring a hard fork, is one project that has profited from its focus on NFTs and the current green revolution.
According to the report, the price of XTZ reversed direction after hitting a low of $3.23 on Dec. 3, rising 68 percent to reach an intraday high of $5.45.
The debut of Ubisoft NFTs on the Tezos blockchain, the project’s goal on establishing an environmentally friendly blockchain platform, and increased transaction and protocol income on the Tezos network are three causes for the price rebound witnessed in Tezos.
Collaboration with Ubisoft
The revelation of a substantial relationship with video game company Ubisoft was the most recent development for Tezos, which really got the price moving. The gaming firm is introducing Ubisoft Quartz, a platform where users can buy Digits, which are unique NFTs that can be used in-game. The site will run on the Tezos blockchain.
In the second half of 2021, blockchain-based gaming has emerged as one of the hottest sectors of the cryptocurrency ecosystem, and cooperation with one of the world’s leading video game developers might lead to long-term favorable consequences for Tezos.
The Ubisoft Quartz beta will begin on December 9 and will be accessible to Tom Clancy’s Ghost Recon: Breakpoint gamers. Early adopters of the platform will be able to receive three complimentary cosmetic NFTs if they satisfy specific conditions.
Emphasis should be on environmental sustainability
The protocol’s aim of developing an ecologically friendly and sustainable blockchain network is another factor for Tezos’ rising strength. The network uses a proof-of-stake consensus method, which is known to be a more energy-efficient alternative to proof-of-work blockchains like Bitcoin (BTC).
“The overall yearly carbon footprint of the Tezos blockchain is similar to the average energy footprint of 17 global inhabitants,” according to research produced by the project.
Reducing the amount of energy required to run the Tezos network, which has been a long-term aim of the project, has resulted in a 70% gain in energy efficiency on a per-transaction basis in 2021, with the “power consumption per transaction being less than 30% in 2021 than it was in 2020.”
Number of transactions and income are increasing
The Tezos network has experienced a jump in transaction volume and protocol income in the last few days, with both reaching their best levels since 2021.
The increase in activity and income occurred as the project announced the completion of its Hangzhou update, the Tezos network’s eighth protocol upgrade, demonstrating the project’s capacity to self-amend and upgrade without requiring a hard fork.