DeutschBitcoin (BTC) has outperformed all other assets so far this year – even its hedging rival gold. Analysts are also talking about “digital gold”, as Bitcoin’s upward performance is once again sparking investor interest. But other currencies have also gained, including Tezos (XTZ).
The Bitcoin price recovered relatively quickly from the slump caused by the coronavirus crisis-induced sell-off in March. But one small cryptocurrency has almost doubled since January – and many expect it to rise even further: Tezos (XTZ) has risen by 85% since the beginning of the year. The gains made last year are thus continuing and XTZ has thus reached a market capitalization of almost USD 1.8 billion.
XTZ among the Top 10 Coins by Market Capitalization
Since the beginning of the year, Tezos has risen from 15th place among the most valuable cryptocurrencies by market capitalization into the top 10, according to data from CoinMarketCap. If this run continues, XTZ could quickly move past some competitors.
According to Mati Greenspan, founder of the market analysis company Quantum Economics, Tezos currently seems to be one of the most popular platforms for new projects. As he explains, several client projects of this company are currently using this cryptocurrency. XTZ uses the so-called proof-of-stake consensus model and has emerged as the preferred blockchain and cryptocurrency for tokenized real estate and security tokens.
More Scalable and less Resource-Intensive than Bitcoin
If Bitcoin miners could switch their computing power to other cryptocurrencies, would this possibly give this cryptocurrency an additional boost? After all, BTC mining should no longer be as attractive for miners after the halving, which is why the hash rate has already fallen. But the cryptocurrency Tezos, which works on the proof-of-stake principle instead of the proof-of-work principle, cannot be mined in the same way as Bitcoin.
Proof-of-stake blockchains are generally considered more scalable and less resource-intensive, as miners do not have to solve complex mathematical problems to create the next block. They also encourage holders to participate in network security. Holders can “stake” their XTZ and receive additional tokens as a reward for creating and verifying new blocks in the chain.
- Tezos
(XTZ) - Price $0.826
- Market Cap
$870.53 M
How Tezos Benefits from Bitcoin
Joe DiPasquale, managing director of the hedge fund manager BitBull Capital, also describes Tezos as one of the more promising projects to emerge from the initial coin era. In times like these, Tezos benefits from the fact that the Bitcoin price is boosting the market for some selected quality projects, explains DiPasquale.
Tezos has benefited in recent months from various platforms that have custody of the XTZ token, such as the crypto exchange Binance, which has had a positive effect on the price factor. The Tezos rally, which began in November last year, was also driven by key partnerships with the financial world and the so-called Tezos Foundation’s Faucet, where users receive up to 0.01 XTZ every 12 hours.
It remains to be seen how things will continue after the BTC halving – also for the smaller cryptocurrencies.
More insights and background information on cryptocurrencies
