Tezos (XTZ), which has Blockchain using a proof-of-stake protocol, is in an uptrend again.
The price of Tezos (XTZ) has increased by 17% in the last 24 hours, according to data from metrics site Nomics. One XTZ token is currently worth $4.07 with a market cap of $3.4 billion.
Tezos started to rise around 18.40 (EST) yesterday evening when it started climbing at around $3.3 last night. It has since surged in price to hit highs of $4.12.
During the same period, daily trading volume has more than tripled, from $108 million to $322 million, according to data from CoinGecko. It is the first rise of the Tezos token since early May when the latest uptrend was seen and XTZ reached around $8.27.
Proof of stake difference
Tezos was launched in 2018 as one of the first proof-of-stake coins. Proof-of-stake cryptocurrencies are issued by people who pledge a large number of coins (they are also equivalent to “baked” and “staked” transactions). This is a protocol that contradicts proof-of-work, in which miners run energy-consuming software to process transactions.
Proof-of-work fell out of favor last month after Tesla CEO and once Bitcoin bull Elon Musk criticized Bitcoin for using this mining mechanism.
Musk, one of the richest men in the world, has pledged to support energy-efficient projects. Despite not mentioning Tezos, the XTZ Blockchain does not carry any of the burdens that its Proof-of-work competitors do.
As Tezos does not rely on computationally intensive mining, it is also unaffected by the pressures for mining expected to come out of China. When a government committee added Bitcoin mining and trading to the cleanup list of dirty industries it plans to monitor, the government lowered the price of Bitcoin.
Last month, NFTs also did well on Tezos, boasting cheaper transaction fees and faster verification times than Ethereum. In May, Tezos-based NFT project Hic Et Nunc surpassed the volume on OpenSea, a popular marketplace for Ethereum NFTs, Art News reported.
Reid Yager, head of communications at BlokHaus, told Decrypt:
Tezos is home to the largest and fastest growing NFT community and a rapidly growing DeFi ecosystem.
Yesterday Sergio “Checo” Perez won the F1 race in Azerbaijan with a car with the Tezos logo. Whatever the reason, XTZ holders seem to have found some morale with this latest bullish wave.