2021 was a watershed year for the cryptocurrency market, with the rise of Bitcoin prices to new heights, the emergence of the widespread decentralized financial system (DeFi) and the growing popularity of non-financial tokens (NFTs) that made blockchain technology popular in the world. in a way that seems foolproof to ensure mass adoption.
One project that has benefited from its focus on NFT and the ongoing green revolution is Tezos (XTZ), a Layer 1 smart contract protocol that is able to scale the network without the need for a hard fork.
Data from Cointelegraph Markets Pro and TradingView show that after reaching a low of $ 3.23 on December 3, the XTZ price reversed and added 68% to reach an intraday high of $ 5.45.
XTZ / USDT 1-day chart. Source: TradingView
Three reasons for the price increase in Tezos are the launch of Ubisoft NFT on the Tezos blockchain, the focus of the projects on creating an environmentally friendly blockchain platform, and the growth of transactions and protocol revenues on the Tezos network.
Partnership with Ubisoft
Tezo’s latest development to actually change the price was the announcement of an important collaboration with the video game manufacturer Ubisoft. Game company Ubisoft launches 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.
Blockchain gaming has become one of the most popular segments of the cryptocurrency ecosystem in the second half of 2021, and a partnership with one of the world’s largest video game manufacturers could lead to optimistic long-term results for Tezos.
The Ubisoft Quartz beta is scheduled for December 9 and will be open to Tom Clancy’s Ghost Recon: Breakpoint players. Players who meet certain criteria will be able to get three free cosmetic NFTs for early users of the platform.
Focus on sustainability
Another reason for Tezos’ growing power is the protocol’s focus on creating an environmentally friendly and sustainable blockchain network. The network uses a Proof of Stake consensus mechanism that is known to offer an energy-efficient alternative to more traditional Proof of Work blocks such as Bitcoin (BTC).
According to a report published during the project, “The total annual carbon footprint of the Tezos blockchain corresponds to the average energy footprint of 17 global citizens.”
Reducing the energy consumption required to power the Tezos network, which has been the project’s goal for some time, increased the network’s energy efficiency by 70% per transaction in 2021, resulting in “electricity demand”. Per transaction, it will be less than 30% in 2021 compared to what it was in 2020. »
About this topic: Tezos Blockchain will register 70% increase in energy efficiency in 2021: PwC. Report
Transaction volume and revenue increase
In just the last few days, the Tezos network has seen an increase in transaction volumes and protocol revenues, both of which reached their highest levels in 2021.
Daily XTZ transaction volume vs. total income. Source: Token Terminal
As you can see in the chart above, Tezos’ transaction volume rose to a record high of $ 369 million on December 3, which may be a hint that some investors have heard of the Ubisoft news.
The jump in activity and revenue came after the project announced the completion of the Hangzhou upgrade, the eighth protocol upgrade of the Tezos network, which demonstrated the project’s ability to self-repair and upgrade without the need for a hard fork.
VORTECS ™ data from Cointelegraph Markets Pro began to set positive prospects for the XTZ on December 5, ahead of the recent rally.
Exclusive to Cointelegraph, VORTECS is an algorithmic comparison of historical and current market conditions based on a number of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
Pricing of VORTECS ™ (in green) versus the price of XTZ. Source: Cointelegraph Markets Pro
As you can see from the chart above, XTZ’s VORTECS begynte started to rise on December 4th and peaked at 87 on December 5th, about 21 hours before the price went up 49% over the next two days.