Key Tezos takeaways:
- Tezos’ token XTZ doubled in value over the past month.
- The recent upgrade facilitated the uptrend.
- Insitutional adoption of Tezos continues.
YEREVAN (CoinChapter.com) – Tezos blockchain’s native cryptocurrency XTZ has doubled its prices in a month, and 52 percent in the past week. It registered a three-month high of $6.1 on Sunday, with a slight correction in the following hours. Blockchain upgrade in early August and growing institutional adoption fuelled the price rally.
In detail, Tezos is one of Ethereum’s proof-of-stake competitors. It is a “self-amending” network, capable of upgrading over time, and does not require a hard fork. The blockchain implemented the most recent upgrade on August 7. It aimed to lower transaction fees and reduce gas consumption via an upgrade dubbed ‘Granada.’
While the network does not have a distinct roadmap, Tezos specified that Granada is the 7th upgrade overall and the third one this year. The upgrade halved block times from 60 to 30 seconds, making Tezos more efficient. It also reduced the gas consumption “by three to six times the current fees.”
“[The upgrade] incentivizes large amounts of decentralized liquidity provision between XTZ and tzBTC by minting a small amount of XTZ every block and depositing it inside of a constant product market-making smart contract.”commented the team.
While the blockchain upgrade benefitted the network, Tezos also enjoyed increased attention from institutional investors.
On August 24, several European financial institutions announced a partnership with Tezos to launch a tokenization pool. In addition, InCore, a Swiss business-to-business transaction bank, will run institutional-grade storage, staking, and trading services for XTZ.
Crypto Finance Group, a digital asset firm backed by Deutsche Boerse, will introduce digital financial products based on Tezos. Stijn Vander Straeten, the CEO of the firm, commented on the new collaboration:
“The launch of these Tezos use cases for the financial sector make innovative, compliant on-chain financial products a reality today”.said the executeive.
As a result of all the positive news for the blockchain, its token XTZ grew in value exponentially, registering a three-month high.
XTZ daily chart
Despite the uptrend being quite choppy for the past month, XTZ managed to put on over 165 percent since July 21. It registered a three-month high at $6.1 on August 29, as the daily trading volume hit $1 billion. In the Monday session, the rally subsided, and the XTZ/USD exchange rate slid to $5.6 after retesting the $6.0 resistance line.
The digital asset also scored a golden cross between its 20-day exponential moving average (EMA-20: blue wave) and the 200-day simple moving average (SMA-200) on August 28.
The technical formation is a bullish indicator. If the EMA-20 holds the position above the SMA-200, XTZ will see more gains.