Tezos (XTZ) Leads Crypto Recovery Following 22% Surge
Tezos (XTZ) has been on a tear over the last 24 hours, outshining all of its major peers by a wide margin and signaling the end of a brief but sharp pullback for the cryptocurrency market.
XTZ Price Update
The XTZ price has been in recovery mode for the last 24 hours, climbing from $0.95 all the way up to $1.16 for a gain of more than 22%. The token is trading well below its 30-day high ($1.42) and still has a long way to go before reclaiming its 90-day peak ($1.83).
Like all of its peers, Tezos underwent a sharp correction over the weekend before bottoming on Tuesday. The token reached a low of $0.8627 early Tuesday and has since recovered more than 34%.
Year-to-date, XTZ is up 152%. It was up by as much as 300% through mid-May.
By steadily outperforming the market, Tezos has seen its capitalization grow to $768 million, where it ranks 22nd in terms of overall value. The multi-purpose blockchain is now more valuable than other high-profile projects like Zcash, Ontology, VeChain and Basic Attention Token.
XTZ trade volumes were reported at just over $12 million on Wednesday, according to CoinMarketCap.Kraken is the largest single market for XTZ trades, followed by BitMax and Gate.io.
Tezos and Tokenization
Optimism surrounding the future of asset tokenization has been one of the primary catalysts behind Tezos’ strong run in 2019. By digitizing real world assets and making them available to investors, blockchain technology is creating new opportunities for micro-investors.
Tezos is aiming to be at the forefront of this emerging market, and has developed a multi-purpose blockchain that facilities formal verification and adaptable on-chain governance in support of tokenization. Earlier this year, a company by the name of Elevated Returns announced it would use the Tezos blockchain to launch a new real estate exchange for the Southeast Asia region. Read more: Tezos (XTZ) Continues to Rise as Tokenization Prospects Grow.
The Tezos hype picked up earlier this year after Coinbase Pro announced it was listing the token. In addition to receiving the Coinbase treatment, Tezos has also benefited from the exchange’s willingness to let users participate in the platform’s proof-of-stake mining process.
Coinbase announced earlier this year that institutional investors will have the opportunity to earn interest on their XTZ holding by participating in the “baking” process. In order to participate in the governance model, users must have at least 10,000 XTZ in their possession. Demand for XTZ went up as a result, which may have fed into the coin’s rapid surge in the second quarter.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.