2021 has been a year of great growth for the cryptocurrency market and aside from the fact that the price of Bitcoin has soared to new highs, the emergence of a vast ecosystem of decentralized finance (DeFi) and the growing popularity of tokens do not fungibles (NFTs) have pushed blockchain technology mainstream in a way that seems to warrant its mass adoption.
One project that has benefited from their focus on NFTs and the ongoing green revolution is Tezos (XTZ), a layer one smart contract protocol that is capable of evolving your network without the need to undergo a hard fork.
Data from Cointelegraph Markets Pro and TradingView shows that, After hitting a low of $ 3.23 on December 3, XTZ’s price reversed its course, gaining 68% to hit an intraday high of $ 5.45.
Three reasons for the price recovery seen in Tezos are the launch of Ubisoft’s NFTs on the Tezos blockchain, the projects focus on creating an environmentally friendly blockchain platform, and increasing transactions and protocol revenue on the Tezos network.
Partnership with Ubisoft
The most recent Tezos development that really got the price moving was the announcement of a major partnership with the video game maker. Ubisoft. The game company is launching Ubisoft 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.
.@Ubisoft Quartz is built on @Tezos, an energy-efficient and self-upgradable Proof of Stake blockchain.
Learn more at https://t.co/MzfgmL4IrX#Tezos #CleanNFT #BlockchainEvolved https://t.co/XlSEZeVlmM
– Tezos (@tezos) December 7, 2021
Blockchain-based gaming has emerged as one of the hottest sectors of the cryptocurrency ecosystem in the second half of 2021 and a partnership with one of the world’s largest video game developers could lead to long-term bullish results for Tezos.
The Ubisoft Quartz beta is scheduled to launch on December 9 and will be open to Tom Clancy’s Ghost Recon: Breakpoint players. Players who meet certain criteria will be able to claim three free NFT cosmetic items for being early adopters of the platform.
Focus on environmental sustainability
Another reason for Tezos’ growing strength is the protocol’s focus on creating a sustainable and environmentally friendly 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 blockchains, such as Bitcoin (BTC).
According to a report published by the project, “The total annual carbon footprint of the Tezos blockchain equals the average energy footprint of 17 citizens of the world.”
Reducing the energy required to operate the Tezos network has been a project goal for some time that has resulted in a 70% increase in energy efficiency on a per transaction basis for the network in 2021, resulting in the “Electricity requirement per transaction is less than 30% in 2021 than it was in 2020.”
Transaction volumes and revenues increase
Only in the last days The Tezos network has seen an increase in transaction volume and protocol revenue, each skyrocketing to the highest levels seen in 2021.
As seen in the graphic above, Transaction volume on Tezos soared to a record $ 369 million on December 3, which could be an indication that some investors had heard the news from Ubisoft.
The increase in activity and income came when the project announced the completion of its upgrade Hangzhou, the eighth update of the Tezos network protocol, which demonstrated the project’s ability to self-amend and update itself without the need for a hard fork.
VORTECS ™ data from Cointelegraph Markets Pro began to spot a bullish outlook for XTZ on December 5, ahead of the recent price spike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trade volume, recent price movements and activity in Twitter
As seen in the chart above, the VORTECS ™ Score for XTZ began to rally on December 4 and peaked at 87 on December 5, about 21 hours before the price increased 49% over the next two days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.
Keep reading: