Three reasons the Tezos (XTZ) price is up nearly 70%
The XTZ price broke the downtrend with a rapid increase of 70% after it was announced that Ubisoft’s new NFT platform, which is based on the Tezos blockchain, was released in various media.
2021 will be a breakthrough year for the crypto market, and in addition to the Bitcoin price soaring to a new all-time high (ATH), the advent of the vast DeFi ecosystem, and the growing popularity of the proliferation of NFTs, blockchain technology has propelled blockchain technology to become mainstream to ensure mass adoption.
One project that has benefited from the focus on NFT and the ongoing green revolution is Tezos (XTZ), a Layer 1 smart contract protocol that is capable of expanding its network without a hard fork.
Data from TradingView shows that after hitting a low of $ 3.23 on December 3, XTZ price reversed, rising nearly 70% to $ 5.72 today.
XTZ / USDT 1 day frame diagram | Source: TradingView
The three reasons for the price recovery at Tezos are the introduction of Ubisoft NFT on the Tezos blockchain, the focus of the projects is on creating an environmentally friendly blockchain platform, increasing the transactions and the revenue from the protocol on the Tezos network.
Cooperation with Ubisoft
The most recent development for Tezos that changed prices was the announcement of a significant partnership with video game maker Ubisoft. The game company is launching Ubisoft Quartz, a platform where users can purchase unique NFTs called Digits that can be used in the game, and the platform will use the Tezos blockchain.
– Tezos (@tezos) December 7, 2021
“Ubisoft Quartz is based on Tezos, an energy-efficient and self-scalable proof-of-work (PoS) blockchain.”
Blockchain-based gaming has become one of the hottest areas of the crypto ecosystem in the second half of 2021, and a partnership with one of the largest video game manufacturers in the world could lead to long-term bullish results for Tezos.
The beta for Ubisoft Quartz is scheduled to start on December 9th and Tom Clancy’s Ghost Recon: Breakpoint will open to players. Players who meet certain criteria can receive three free NFT items from the early platformer drop.
Focus on ecological sustainability
Another reason for Tezos’ growing strength is the protocol’s focus on creating a sustainable and environmentally friendly blockchain network. The network uses the PoS consensus mechanism, which is known to provide an energy efficient alternative to more traditional proof-of-work (PoW) blockchains like Bitcoin.
According to a report published by the project, “the total annual carbon footprint of the Tezos blockchain is equivalent to the average energy emissions of 17 world 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 percent increase in energy efficiency per transaction for the network by 2021, resulting in “electricity demand” for each transaction in 2021 is 30% lower than in 2020 ”.
Transaction volume and increase in sales
In the past few days alone, the Tezos network has seen a surge in transaction volume and revenue from the protocol as each network climbed to its highest level of 2021.
Daily XTZ trading volume vs. total turnover | Source: Token Terminal
As seen in the graph above, Tezos’ trading volume soared to a record high of $ 369 million on December 3, which could be an indication that some investors have caught the news about Ubisoft.
Activity and revenue soared as the project announced the completion of the Hangzhou upgrade, the eighth protocol upgrade for the Tezos network that demonstrates the project’s ability to modify and upgrade itself without hard fork.
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