3 reasons why Tezos (XTZ) prices rose by 50% and broke the downward trend


2021 is a breakthrough year for the cryptocurrency market. In addition to the soaring Bitcoin price to new highs, the emergence of a huge Decentralized Finance (DeFi) ecosystem and the increasing popularity of non-fungible tokens (NFT) have brought blockchain technology Pushing to the mainstream looks like a way to ensure mass adoption.

One project that has benefited from the focus on NFT and the ongoing green revolution is Tezos (XTZ), a first-level smart contract protocol that can develop its network without a hard fork.

Data from Cointelegraph Markets Pro with Transaction view It shows that after hitting a low of $3.23 on December 3, the XTZ price reversed and rose 68% to an intraday high of $5.45.

XTZ/USDT 1-day chart. Source: TradingView

The three reasons for Tezos’ price rebound include the launch of Ubisoft NFT on the Tezos blockchain, the project’s focus on creating an environmentally friendly blockchain platform, and the increase in transaction and protocol revenue on the Tezos network.

Cooperation with Ubisoft

The latest development of Tezos, which is really driving price changes, is the announcement of an important partnership with video game manufacturer Ubisoft. The game company is launching Ubisoft Quartz, a platform where users can get a unique NFT called Digits, which can be used in games, and the platform will utilize the Tezos blockchain.

Blockchain-based games have become one of the hottest areas in the cryptocurrency ecosystem in the second half of 2021, and cooperation with one of the world’s largest video game manufacturers may bring long-term bullish results for Tezos.

The beta version of Ubisoft Quartz is scheduled to be launched on December 9th and will be open to players of “Ghost Recon: Breakpoint”. Players who meet certain conditions will be able to get three free NFT cosmetic drops because it is an early adopter of the platform.

Focus on environmental sustainability

Another reason for the continued strength of Tezos is that the agreement focuses on creating an environmentally friendly and sustainable blockchain network. The network uses a proof-of-stake consensus mechanism, which provides an energy-saving alternative to more traditional proof-of-work blockchains (such as Bitcoin).Bitcoin).

According to a report released by the project, “The annual total carbon footprint of the Tezos blockchain is equivalent to the average energy footprint of 17 global citizens.”

Reducing the energy required to operate the Tezos network has been a goal of the project for some time. This has led to a 70% increase in the energy efficiency of each transaction on the network in 2021, resulting in “power demand per transaction” 30% less in 2021 than in 2020 %. “

related: PwC reports that Tezos blockchain will increase energy efficiency by 70% in 2021

Increase in transaction volume and revenue

In the past few days, the transaction volume and protocol revenue of the Tezos network have increased, each of which has soared to its highest level in 2021.

XTZ daily transaction volume and total revenue.Source: Token Terminal

As shown in the figure above, Tezos’ trading volume soared to a record US$369 million on December 3, which may suggest that some investors have noticed Ubisoft’s news.

As the project announced the completion of its Hangzhou upgrade, this is the eighth protocol upgrade of the Tezos network. The substantial increase in activities and revenues proves the ability of the project to modify and upgrade itself without a hard fork.

VORTECS™ data comes from Cointelegraph Markets Pro Before the recent price increase, a bullish outlook for XTZ began to be discovered on December 5.

Cointelegraph’s unique VORTECS™ score is an algorithmic comparison of historical and current market conditions. These data points include a combination of market sentiment, trading volume, recent price changes, and Twitter activity.

VORTECS™ score (green) and XTZ price. source: Cointelegraph Markets Pro

As shown in the figure above, XTZ’s VORTECS™ score began to rise on December 4th and reached a high of 87 on December 5th, approximately 21 hours before the price rose by 49% in the next two days.

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