Is Growth Rate Alone Enough For Tezos (XTZ) To Beat Its Competitors?
The open-source decentralized blockchain Tezos is active in the second half of 2021 thanks to a large number of investors flocking to the network. In addition, many other metrics also posted solid growth. The ecosystem has also never performed a hard fork. This shows the effectiveness of the self-correcting mechanism (LPOS – Liquid Proof-of-Stake).
Report The 2021 Tezos network study provided insight into the aspects driving Tezos traction in the community.
The network grew 40% in Q3 2021 in “new deployments” compared to Q2, but was just under the 4000 mark at the time of writing.
On the other hand, it has seen 100% growth in call-to-contract over the same period. Tezos recorded over 6 million smart contract calls in January 2022. The graphic below highlights these two aspects.
New developments (left) and contract release orders (right) | The source: Better call the developer
Tezos has also made significant progress in the area of NFTs. Tokens cannot replace the network’s overall growth over the past year, both in terms of smart contract addresses and widespread adoption.
The volume of transactions executed using smart contracts increased from less than 10,000 per day in January 2021 to more than 50,000 per day in January this year. The number of smart contract transactions has similarly increased as NFT platforms like FX Hash are attracting increasing interest.
Number of addresses and daily transactions | The source: Coin Metrics
On-chain applications like objkt.com, hic et nunc and many others are at the top of the industry in terms of transaction volume and user activity.
The increasing adoption of Tezos shows that it can compete with other smart contract platforms like Ethereum and Binance Smart Chain when it comes to DeFi. Follow DeFiLlamaTezos currently has a total value of more than $90 million (TVL) in its DeFi ecosystem.
Brands and partnerships
The network also draws attention to itself with current partnerships. The Foundation signed a multi-year, $27m (£120m) deal with Manchester United. In May 2021, Tezos became the official blockchain partner of the New York Mets. This success is not surprising. In addition, the open source blockchain has also partnered with Red Bull Racing Honda and McClaren Racing for Formula 1, Indycar and Esports racing teams.
In fact, Tezos hit a record 6 million contract calls in January, a new monthly high tweet the company.
With the exponential growth, Tezos’ social indicators also shot up. As of February 3rd, it is in the top 3 in terms of social media volume and engagement.
Social Metrics | Source: LunarCrush
At the time of writing, XTZ price has rallied above the $4 resistance level, almost 7% higher in 24 hours.
Source: Trade View
On the other hand, steady upgrades and adoptions give the coin a bullish signal even after a slow start in the initial stages.
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