What’s Behind the Tezos Pump?
Tezos (XTZ) posted 28% growth on Wednesday morning, as it celebrated the one year anniversary of its betanet launch. While birthday celebrations are unlikely to cause investors to exchange USD or BTC for XTZ, perhaps traders were enticed by other means.
The Tezos team is currently running a competition to give 500 people a free blockchain development course. At the same time, a giveaway is afoot which will see free Ledger Nano S – engraved with the Tezos logo – awarded to recent contributors to the Tezos foundation fundraiser.
On a more technical level, Tezos must have been primed for a rebound after losing 52% in the past six weeks. That was while the rest of the crypto market soared, and was caused by fear and uncertainty surrounding a hostile split in the Tezos camp.
Read more: Hard Fork Rumours Send Tezos (XTZ) Tumbling
Tezos Has Been Baking For 1 Year
‘Baking’, in simple terms, is the Tezos form of staking, where users earn interest for committing their XTZ to the blockchain. According to Tezos documentation, XTZ is currently the most staked digital currency in the world, with around 80% of all coins baking on the betanet. That figure is backed up by independent evaluator, StakingRewards.com, which places the staked coins ratio at 79.47%.
As per the same data source, XTZ stakers can expect yearly returns of 7.04% on Tezos. A minimum of 1 XTZ is required to stake (by delegation). However, if you want to run a node and become a baker, it requires laying down 10,000 XTZ (around $11,200 at current prices). Bakers, unlike delegated stakers, receive extra rewards in the form of transaction fees.
Despite not being listed on Binance or Coinbase, and despite recent controversies, Tezos is now ranked 22nd by market cap, and is the Proof-of-Stake network with the most staked coins. That’s not bad for a coin which began with scam accusations, then got mixed up in a tussle with the SEC over its potential status as a security offering (a process that’s still ongoing).
Rapid Turnaround – XTZ/USD
Following rumours of a hostile hardfork in mid-June, the value of XTZ took a 52.8% nosedive. That sent the price tumbling from $1.83 all the way down to $0.862813.
Six weeks on, and the XTZ price jumped from $0.868450 up to $1.12 on the morning of July 3rd, marking 28% gains for the day.
BitMax, Kraken and Gate.io were the main sources of trade for XTZ on Wednesday, with BTC and USDT trades dominating. It may be worth noting that Kraken’s XTZ/EUR pair was the fourth most traded on the day.
That may be a sign of Tezos’s popularity across the pond. The project was founded on French soil, by a French team, and was even name dropped by France’s finance minister not too long ago.
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.