Tezos, one of the surviving and still thriving projects from the 2017 ICO craze, when it raised $232 million, remains a sleeping giant that has yet to realize its full potential. But when you take a closer look at Tezos’ (XTZ) performance over the past year, you can see several successful upgrades to the protocol in a bid to attract more defi platforms, DEXes and NFT marketplaces to the blockchain in 2021.
Tezos has maintained steady growth throughout 2020, with market cap increasing from December 2019 to December 2020, almost doubling from $1.21 billion to $2.32 billion, with 79.73% of the circulating supply of XTZ currently being staked on the network.
There were several successful upgrades and projects built on the blockchain, including the Delphi protocol upgrade (which decreased gas fees by 75%), development of Harbinger Price oracles, a stablecoin, wrapped ETH, and an NFT marketplace called Kalamint.
The real question is, will Tezos be able to compete against the first-mover momentum Ethereum clinched over the space since Uniswap launched its AMM in 2018, birthing defi as we know it?
The original selling point of Tezos was its ability to automatically upgrade the network protocol without having to split or fork its blockchain. Stakeholders, or “bakers,” stake XTZ (or delegate someone) that allows them to vote on proposed code changes. Despite being less of a benefit in today’s cryptocurrency space where defi reigns supreme, their Delphi upgrade brings new capabilities to the Tezos network.
Delphi was the fourth upgrade to the protocol in two years, and was successfully implemented in November 2020. Its main value proposition is that it decreases gas consumption by about 75%, so that even more advanced smart contracts can be executed for considerably less.
Gas computation, and a decrease in base cost for manager operations, cut gas units from 10,000 to 1,000, allowing the network to include three and a half more transactions per block, and 4x more multi-asset transfers.
The upgrade was meant to attract developers to build applications on top of the Tezos network in the defi, NFT, and gaming markets, and so far, has been successful.
There are currently 119 projects built on the Tezos blockchain, and with its reduction in gas fees, they may be finding themselves expanding even more into defi.
Bringing Oracles to Tezos
Oracles are the backbone of defi platforms today. They are integral in providing real-time financial price data to protocols and applications, allowing platforms to build financial products like algorithmic stablecoins, derivatives markets, loans and insurance projects.
Harbinger, the oracle developed by Blocksale, delivers a real-time signed price feed from different exchanges, and supports market data APIs of Coinbase Pro, Binance, Gemini and OKEx.
The oracle is based on Compound Finance’s Open Price Feed, but differs from Chainlink, where fees are required to post price data on-chain. Tezos is different in that it can be paid by staking rewards earned by Tezos holders, i.e. it can be prefunded.
Participating exchanges like Coinbase and Binance create cryptographically signed price feeds called ‘signers’, which allows ‘posters’ to receive price changes (prices are signed by the exchange’s private key) from the exchanges to a ‘storage contract’. Then what’s called a ‘normalizer contract’ calculates the volume weighted average price (VWAP) and sends it directly to the defi application.
With protocol upgrades, price oracles, new markets for defi, NFTs, and DEXes opening up, lowered gas fees for cheaper transactions, wrapped ETH, and stablecoins, Tezos has a chance to compete against Ethereum, positioning itself as a more scalable alternative when gas fees are too high on the network.
Where to Buy XTZ
While the majority of Tezos’ circulating supply is currently being staked, there are still XTZ tokens that can be purchased on the open market. You can acquire Tezos’ native asset on most leading crypto exchanges, though don’t try to find it on Uniswap – as a non-ERC asset, XTZ isn’t compatible with Ethereum and has yet to be released as a wrapped ERC20.
One of the simplest options for picking up a bag of XTZ is on Kraken, the US-based exchange, or Coinbase Pro. XTZ can also be purchased on Skrill, the e-payments platform that’s added crypto to the dozens of payment options it supports.
After purchasing your first XTZ, you can leave it in your wallet or join the staking brigade and earn a return for ‘baking’ those tezzies.
Bitcoin Price Prediction: BTC freefall to $42,000 beckons amid extremely drained bullish front
- Bitcoin rejection from $52,000 leads to unstoppable declines under $50,000.
- Technical indicators flip bearish for Bitcoin, adding weight to the impending price drop.
- The IOMAP model reveals immense resistance ahead of BTC and robust support, hinting at a potential consolidation.
Bitcoin continues to explore price levels under $50,000 following a recent rejection at $52,000. Initially, traders anticipated support at the 100 Simple Moving Average (SMA) and the 50 SMA on the 4-hour chart, but the gravitational force seems extremely hard to stop.
Meanwhile, the bellwether cryptocurrency is trading slightly above $47,000. Short-term technical analysis shows that the least resistance path is downwards. This is emphasized by the Moving Average Convergence Divergence (MACD) on the same 4-hour chart.
The trend momentum indicator has also flipped bearish following the MACD line (blue) cross under the signal line. Additionally, the technical indicator is falling toward the midline and may extend the action into the negative region.
Bitcoin is expected to secure support at the 200 SMA to halt the losses. However, if push comes to shove, BTC will extend the bearish leg to $42,000 due to the lack of a robust support area.
BTC/USD 4-hour chart
The In/Out of the Money Around Price (IOMAP) model by IntoThepBlock bolsters the massive resistance ahead of the flagship cryptocurrency. Recovery from the current price levels to $50,000 will not come easy, especially with the selling pressure between $48,450 and $49,816. Here, nearly 1.1 million addresses had bought 504,000 BTC.
On the flip side, the same on-chain model reveals that Bitcoin’s downside is also strongly supported, which means that losses as far as $42,000 may not come into the picture. Consolidation may take place owing to the support running from $45,660 and $47,026. Here, approximately 739,000 had purchased 445,000 BTC.
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Bitcoin and Ether Whales Prepare for Market Rally as Altcoins Outperform Top Cryptos
Bitcoin and Ethereum whales are preparing for a renewed cryptocurrency market rally, grabbing as much of both cryptoassets’ total supply as they can before prices move up in the near future. According to crypto analytics firm Santiment, Bitcoin’s largest holder – those with over 1,000 BTC or more, worth about $49.8 million at press time […]
Bitcoin and Ethereum whales are preparing for a renewed cryptocurrency market rally, grabbing as much of both cryptoassets’ total supply as they can before prices move up in the near future.
According to crypto analytics firm Santiment, Bitcoin’s largest holder – those with over 1,000 BTC or more, worth about $49.8 million at press time – now hold 42.56% of the flagship cryptocurrency’s total supply, after dropping from 43.29% on February 8. Their large supply helped fueled bitcoin’s move to a new all-time high to $58,000.
Per the firm, if whales control over 43% of bitcoin’s total supply, it will be an “indication whales are looking to fuel another rally.”
Large holders taking over a larger portion of the cryptocurrency’s supply may help reduce selling pressure and even lead to a supply squeeze, as demand from other buyers remains while available supply drops significantly.
Santiment, as Daily Hodl reports, also revealed that Ethereum’s 10 largest addresses that are not controlled by cryptocurrency trading platforms are holdings the “most combined supply of ETH tokens (16.86M) since July 2016.”
Earlier this month, over 1 million ETH ($1.57 billion) was added to these addresses, showing they’re gearing up for a move upward.
In separate tweets, Santiment pointed out that while whales prepare for a BTC and ETH rally, smaller cryptocurrencies have been outperforming these blue-chip cryptos, likely because of demand coming in from retail investors.
Altcoins outperforming both BTC and ETH include Polygon (MATIC), Enjin (ENJ), Theta blockchain’s governance token Theta Fuel (TFUEL), and XinFin (XDC). These are outperforming bitcoin at a time in which the cryptocurrency struggles to remain above the $50,000 mark.
Other metrics point to an upcoming cryptocurrency rally. The amount of bitocin held on cryptocurrency exchanges has been steadily dropping over the last few weeks, to the point that over the last 30 days an estimated 46,900 BTC, worth over $2.3 billion, is believed to have left trading platforms.
The bitcoin balance on cryptocurrency trading platforms is often used by analysts to gain insights into what BTC investors are thinking. A large amount of bitcoin leaving trading platforms shows investors are looking to self-custody their funds, presumably because they plan to hold onto them for some time. This reduces selling pressure on the cryptocurrency.
Featured image via Unsplash.
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TA: Bitcoin Price Back Below 100 SMA, Why BTC Could Retest $45K
Bitcoin price failed to stay above $50,000 and $49,000 against the US Dollar. BTC is now below the 100 hourly SMA and it is likely to continue lower towards $45,000
- Bitcoin started a fresh decline below the $50,000 and $49,000 support levels.
- The price is now trading well below $50,000 and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming with resistance near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend its decline towards $45,000 as long as it is below $50,000.
Bitcoin Price Turns Red
After forming a short-term top near the $52,600 level, bitcoin started a fresh decline. BTC traded below the $51,200 and $50,000 support levels to move back into a negative zone.
There was also a break below a major bullish trend line with support near $49,500 on the hourly chart of the BTC/USD pair. The pair even broke the $48,000 support level. There was a clear break below the 50% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.
It is now trading well below $50,000 and the 100 hourly simple moving average. It seems like the bulls are trying to protect the 61.8% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.
Source: BTCUSD on TradingView.com
If they fail and the price trades below $46,500, there are chances of more losses. The next key support is near the $45,000 level, below which the bears might aim a test of the $43,000 support zone.
Fresh Increase in BTC?
If bitcoin stays above $46,500, it could correct higher. An initial resistance on the upside is near the $48,000 level. The first major resistance is near the $49,000 level and the 100 hourly simple moving average.
There is also a connecting bearish trend line forming with resistance near $49,000 on the same chart. To move into a positive zone, the price must clear the trend line resistance and then gain pace above the $50,000 barrier.
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Levels – $46,500, followed by $45,000.
Major Resistance Levels – $48,000, $49,000 and $50,000.
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