3 Reasons Why Tezos (XTZ) Price Broke its Downtrend With a 50% Rally
Read the full article by Jordan Finneseth here
XTZ price broke its downtrend with a swift 50% rally once news that Ubisoft’s new NFT platform is built on Tezos blockchain made the rounds in various media.
Key Points:
2021 has brought Bitcoin and the rest of the cryptocurrency market to all time highs. Decentralized finance is becoming a term people are more familiar with, NFTs are appearing in profile pictures all across social media and Decentralized Autonomous Organizations are beginning to make some serious noise in the world.
One project that has benefited from its focus on NFTs and the ongoing green revolution is Tezos (XTZ), a layer-one smart contract protocol that is capable of evolving its network without needing to undergo a hard fork.
TradingView displays that Tezos bounced more than 50% in the last few days.
Three reasons for the price recovery seen in Tezos are the launch of Ubisoft NFTs on the Tezos blockchain, the projects' focus on creating an environmentally friendly blockchain platform and rising transactions and protocol revenue on the Tezos network.
XTZ/USDT 1-day chart. Source: TradingView
Partnership with Ubisoft
The most recent development for Tezos, which really got the price moving, was the announcement of a significant partnership with video game maker Ubisoft. The gaming company is launching Ubisoft Quartz, a platform where users can acquire unique NFTs called Digits, which can be used in-game and the platform will utilize Tezos blockchain.
Tezos has had a strong focus on being an environmentally friendly proof of stake protocol.
According to a report released by the project, “the total annual 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, which has been a goal of the project for some time, has resulted in a 70% increase in energy efficiency on a per-transaction basis for the network in 2021, resulting in the “electricity requirement per transaction being less than 30% in 2021 than what it was in 2020.”
Related: Tezos blockchain records 70% increase in energy efficiency in 2021: PwC report
In just the past few days, the Tezos network has seen an increase in transaction volume and protocol revenue as each spiked to the highest levels seen in 2021.
As seen in the graph above, the transaction volume on Tezos surged to a record-high $369 million on Dec. 3, which could be a hint that some investors had caught wind of the Ubisoft news.