With the rise of ecological concerns, the attention goes more and more to the Proof-of-Stake blockchain. Tezos was one of the first to apply this consensus mechanism and moreover, was attracting users with its clear concepts and useful features. Despite its usability, the bearish trends of the market hit the XTZ token hard, and it made many people question if Tezos is a good investment or not anymore. Read our Tezos Price Prediction to understand more.
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Tezos Fundamental Analysis
Tezos is an open-source blockchain network for assets and applications that can upgrade themselves. It aims to facilitate the users to participate in the decentralized finance economy, building and deploying the dApps and taking part in non-fungible token projects.
The project was launched by french engineer Arthur Breitman, who previously worked at Google. Together with his wife Kathleen Breitman they developed a network. Arthur has published a Whitepaper for the project back in 2014 under the pseudonym L.M Goodman, but only in 2017 with the support of the Tezos Foundation headed by Swiss entrepreneur Johann Gevers, the Initial Coin Offering for the project was held. The ICO raised around $232 million and was the most successful one of that time. Until now it is ranked as the seventh most successful ICO ever.
Tezos is a self-amendment network, meaning that it can upgrade itself without the need to split into two different blockchains. It gives Tezos a big advantage as it eliminates the risk of splitting the community, which often happens once the fork of the network is suggested and also disrupts the network effects over time. The network also facilitates formal verifications.
The Tezos network is vast and fast-growing and applies a Proof-of-Stake consensus mechanism. In fact, it was one of the first networks to use this consensus.
The validators on the network are called bakers. To become a node validator one needs to stake at least 8000 Tez, known as a roll. If the person doesn’t have this many assets, they can still participate in staking by delegating their coins to the node operator. For each “baked” block backers receive 32 XTZs. After that, the endorsers are chosen to verify the last added block. They’re rewarded by 2 ZTX per verification.
Stakeholders govern upgrades to the core protocol, including upgrades to the amendment process. Whenever the amendments are accepted by the participants can include rewards to the users that help improve the protocol.
The project offers developers templates for building smart contracts, including repositories for creating non-fungible tokens. The project team has also created a fun and interactive tutorial to make learning the Ligo, SmartPy programming language easier for the developers. the smart contracts built on Tezos can’t be shut down or censored by third parties.
Recently Tezos technology was used by the European central bank experiment exploring the possibility and feasibility of launching central bank cryptocurrencies.
XTZ or tezzie is a native currency of the Tezos network. It is an inflationary coin with a set annual inflation rate. The newly issued assets are used for the rewards and contribute to the token inflation.
Tezos Live Price Chart
At the beginning of August 2021, the price of the XTZ token was actively recovering from the bearish trend. On August 3 it was still trading for $3, by the end of the month the price almost doubled and the Tezos network coin was trading for $5.8.
The gaining continued in September, but on the 8th of the month, the XTZ coin suddenly fell to $4.3, and then pumped up from this dip, reaching $7 in just 3 days. In the next 2 weeks, the token was very volatile, trying to establish a new price position. At the end of September, the token price shrunk to $5.4 again and then followed the bullish trend of the altcoins market and reached $9.1 on October 3. While most of the altcoins established their new all-time highs, the Tezos coin couldn’t beat the record of 2017.
The following market correction affected the XTZ too and its price chart started to decline. The asset was in a continuous downtrend for almost 2 months. On November 27 it was trading for $4.6 and in the next 24h jumped to $5.6. It was a temporary move and even though the price went up to the same level again after a short price correction, on December 13 the price went back to the level of $4. Both attempts to break through the resistance level at the end of December 2021 and at the beginning of January 2022 were not successful and the price stayed within $4-$4.4 till the middle of January.
On January 22 the price of Tezos token suddenly dropped to $2.9 and stayed this low for almost a week but then returned to the previous level and even grew to $4.4 in the first week of February, but then dropped to the level of $3 and stayed there for around 3 weeks.
The next attempt for price growth was at the end of March, but instead of establishing a new uptrend, the token went down from April 11. On May 12 when almost everything on the market got shaken the XTZ also dropped to $1.7, maintained this level for a month, and at the beginning of June reached a new low of $1.4. In the last two weeks, it was slightly bullish, but couldn’t demonstrate big gains and only reached $1.8.