Tezos (XTZ) is one of the largest cryptocurrencies in the market and has been in a bull market in the last few months. The main question that traders currently have is related to whether this virtual currency will continue its upward trend in the next 10 months of this year. In this article, we will share with you some of the reasons we think that could push the price of this virtual currency to new highs. At the same time, we will also share with you what Tezos is and how it could help the whole crypto market innovate and move forward.
Tezos is a new multi-purpose platform that aims at supporting a wide range of decentralized applications (dApps) and smart contracts. The goal is to offer solutions to companies and users through a new on-chain governance method that would be able to handle corrections and network modifications. The network works with a delegated Proof-of-Stake (DPoS) that offers users the possibility to protect the network through a “baking” system - which is similar to staking. In this way, honest bakers are able to earn some XTZ rewards, while dishonest bakers will lose their XTZ deposits. Despite a difficult starting, Tezos became the tenth-largest virtual currency in the market, and it seems that it wants to continue growing in the future.
Tezos holders are wondering what will happen with their investments in the coming year. This is a very important time for the crypto market. The last time that Bitcoin (BTC) reached an all-time high was in 2017, and many altcoins were in a bear trend since then. After 2018 and 2019 that were somehow bearish for the space, traders are now excited about the last one and a half month that were very positive for the entire crypto market. Indeed, Tezos, for example, was able to reach its highest value after being released to the market. Since the beginning of the year, Tezos surged by 209% from $1.24 to over $3.82 in just 50 days. This shows that the market is already excited about the future of this virtual currency. The main question is how long will this bull market continue.
There are many companies already offering Tezos staking for individuals to be able to earn some rewards on their funds. This is now being done by Coinbase and Binance, among others. If new exchanges are the staking functionality in the future, it will be possible for Tezos to move higher.Offering users the possibility to make earn rewards on their funds is something very positive that must be taken into account. Moreover, demand for the asset can grow and push the prices higher if the demand for it grows in the future.
Bitcoin, the largest cryptocurrency in the world, is helping other virtual currencies to move higher. Indeed, thanks to the price increase experienced by the largest digital asset in the world, many altcoins are gaining momentum as well. Indeed, if we have a look at Bitcoin’s market dominance, it fell from over 70% to almost 62% in the last months. If Bitcoin continues growing in the coming months, it might be possible for altcoins to remain in this upward trend. Indeed, Bitcoin is going to be halving in May this year, which is very bullish not only for Bitcoin itself, but also for the whole market. If the market enters a new fast and aggressive bull market in the coming months, Tezos would clearly continue its upward trend. Nonetheless, it may be possible for it to take a short pause before continuing with it. We have many times seen cryptocurrencies surge by over 100% in just a few weeks. For example, in 2019, Binance Coin (BNB) moved from below $5 to over $24 in just a few months. Litecoin surged from $25 to $140 as well in 2019. This shows that digital assets are very volatile and anything can happen to them in short periods of time.
In this article, we aimed at showing you how Tezos performed this year in the market and how it could continue growing in the future. Tezos is showing strength and it could capitalize the current bull market in the space to grow even further. With Bitcoin expanding thanks to the halving narrative, many digital assets and altcoins will also be benefited by the current excitement in the space.
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