- Up over 590% in the past year driven by flexible governance, decentralization, bug-free code, and 78.3% of supply staked
- The digital asset is among Weiss Crypto Ratings’ top five list of smart contracts platforms
Tezos (XTZ) has been the star of the crypto market performance since last year when it jumped over 400%. Flying high in 2020 as well, XTZ is already up 87% so far and has become the tenth-largest cryptocurrency by market cap of $1.7 billion.
Today, we went as high as $2.74, up 5% in the past 24 hours. As the digital asset breaks into an ATH, it’s got no resistance to stop it which means the sky’s the limit now for XTZ.
This Tezos chart could serve as reminder for what happens when an asset breaks into all-time-highs. Nothing but hot air above (i.e. no resistance). pic.twitter.com/M1c0evRWZ2
— Alex (@classicmacro) February 9, 2020
Tezos is also leading the altcoins rally and outperforming Bitcoin, up 37.45% against BTC YTD.
— Weiss Crypto Ratings (@WeissCrypto) February 7, 2020
This surge has been on the back of the high volume. On Feb. 9, XTZ saw $79.5 million in real volume which has been a new ATH and about 50% higher than the previous volume record of $53.8 million just days before on Feb. 3rd. Analyst Ceteris Paribus notes,
“Adjusting for price, it's approximately the same amount of tezos units traded on Nov 7, the day after coinbase announced staking on the exchange.”
On the way to becoming the next smart contract leader?
Weiss Crypt Ratings meanwhile has taken a special interest in this digital asset which said Tezos’ success is driven by four key factors including flexible governance, decentralization, bug-free code, and 5% cryptocurrency ‘dividends’ paid to XTZ token holders.
Staking has been the hottest trend in 2019 which is expected to continue this year. In Tezos, known as baking, it played an important part as evident from the fact that nearly 80%, 78.3% of the XTZ supply as per Staking rewards is staked.
This constraint in supply, while demand continues to rise, is the key reason for XTZ price surging. According to Weiss Ratings,
“Tezos stands alone as the most decentralized POS crypto on the planet by far. It is one of the key factors why XTZ has become so successful as a smart contract platform in less than two years of operation.”
But the most notable limitation of Tezos is its processing speed which maxes out at 50 transactions per second. As for the proposals to improve it, the rating provider of stocks, mutual funds, cryptocurrencies, ETFs, and Financial Institutions says “are unimpressive and lackluster.”
Despite this, Weiss Ratings Believe the future updates will take care of this issue as it is among their top five list of smart contracts platforms including the likes of Ethereum (ETH) and Cardano (ADA) that could become the next smart contract leader.