XTZ Traders Highly Confident Tezos Is Going Higher as they Go Mega Long in the Past Month
Last week, Tezos got back into action.
In the middle of last week, the digital asset started surging over 13%, but over the weekend, it crashed 10% just like the rest of the crypto market following Bitcoin.
But since then, Tezos has been back on the move and recorded more than 17% gains. Today, the 13th largest cryptocurrency by market cap of $2.3 billion is trading at $3.27, still up over 8%.
But the market remains as bullish as ever on this crypto asset amidst the ongoing bullishness in the crypto market.
Open Interest on XTZ futures on Bitfinex is currently 96% long with XTZ/USD longs also at a new all-time high, having seen a massive jump in the past month. As Josh Olszewicz noted, “70% of that long OI was added in late July.”
“Someone is very confident XTZ is going higher,” he said.
But not everyone feels that way; trader CL is exactly the opposite as he said, “Im so bearish Tezos.”
According to him, the digital asset doesn't have much going on with it except for the baking — a majority nearly 80% of Tezos circulating supply is locked for staking. CL said,
“6% annual yield on staking? You can get x5 of that in DeFi using stablecoins while getting 0 directional risk. Everyone is paying 50$ to call a smart contract on ETH, 30$ to take a trade on uniswap, who is using Tezos?”
Not only there isn’t nothing to speculate on, but the trader also says the digital asset is trading at a “pretty high speculation premium.” He said,
“If someone wants to be exposed to directional risk and have yields from holding it, there's many other better coins.”
Now its rival Cardano (ADA) has also finally launched its mainnet. According to Quantstamp, a company auditing Cardano’s codebase for the past two months believes it has some of the best code in the crypto space, actually on par with ETH 2.0’s Prysm, which they recently audited.
In an interview with Cointelegraph, Jaye Harrill, Quantstamp communications manager said thanks to the Shelley era, they see it as the second most popular smart contract, second to Ethereum by 2020. “As a proof of stake system, it now dwarfs Tezos,” she said.
Last month, Cardano jumped to 6th spot thanks to a pump in its price driven by the mainnet launch. But now traders have their eyes set on Tezos, which is expected to follow LINK, a digital asset that is hitting new all-time highs every other day in 2020.
— Crypto Michaël (@CryptoMichNL) August 4, 2020
“Support held and we've bounced upwards severely. Looking to see whether $3 and/or $3.12 holds. From there I assume we'll be attacking $4,” said trader Crypto Michaël about XTZ price.