Tezos soared 160% to rank among the top ten in market capitalization. PoS projects are welcome to return to value?
Produced | Odaily (ID: o-daily)
Produced | Odaily (ID: o-daily)
On December 13, Tezos rose by more than 12% in 24 hours, ranking among the top ten digital currencies in terms of total market capitalization. Although there was a slight correction afterwards, as of press time, according to the BitUniverse market, Tezos still has a market value of about 7.621 billion yuan, surpassing the 11th-ranked Steallar by about 500 million yuan.
Recently, the cryptocurrency market has continued to decline. Bitcoin fell below $7,500 last week, then continued to fluctuate around $7,200, and approached the support of $7,000 over the weekend. The recent public chain track is even colder, the value has been questioned repeatedly, and there are few independent marketers.
However, Tezos bucked the trend and rose for more than a month, soaring from the lowest price of US$0.74 in October to the highest price of US$1.85 in December, an increase of more than 160% within the year.
PoS is undoubtedly a hot spot in the first half of 2019. With the launch of the mainnet of PoS flagship projects such as Cosmos and Algorand, as well as the continuous extension and application of Staking economy and mortgage mining, the voice of "PoS is the future" is heard in the middle of the year . However, with the price falls of highly promising projects such as ALGO, ATOM, IRIS, etc., the income from staking does not offset the decline in currency prices, and the future of the PoS public chain has also been questioned.
With the price increase of Tezos and the recent recovery in the price of ATOM, PoS projects may usher in a return of value in 2020, which has become a hot topic on social media such as Twitter.
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(Screenshots of some overseas KOL Twitter)
Obviously, it is too early to discuss the development of the PoS ecology based on the short-term market. Odaily also reminds investors to make rational judgments. However, projects with promising technical teams, economic models, and community governance can usher in a matching second. The performance of the high-level market is also an exciting thing.
Tezos, which launched its mainnet in 2018, is regarded as a pioneer in PoS exploration. Tezos was co-founded by husband and wife team Arthur Breitman and his wife Kathleen in 2014. Kathleen worked for Accenture and distributed ledger Startup R3CEV, where Breitman was a vice president at Morgan Stanley from 2013 to 2016. Tezos, which is benchmarked against Bitcoin and Ethereum, emphasizes that it can solve the inevitable hard fork problem of the former through the "self-correction" of its on-chain governance.
Three years later, Breitman left JPMorgan and started the Tezos ICO. In just two weeks, Tezos raised a value of 232 million US dollars, making it the ICO project with the highest financing amount at that time. Investors included the Winklevoss brothers, founders of the Gemini exchange. After the fortune soared, the project experienced a period of internal strife and collapse, but with the team back on track and the smooth launch of the mainnet, at present, according to Stakingrewards data, Tezos’ mortgage rate is as high as 73.97%, and the total mortgage market value ranks first.
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The driving force behind the scenes: Blessings from exchanges such as Coinbase
XTZ has been on the rise since the beginning of November. This round of XTZ rise has the most direct relationship with the XTZ benefits recently released by Coinbase.
Tezos has always been a PoS project with a high degree of community consensus, and major exchanges, wallets, mining pools, etc. all regard Tezos as a high-quality staking asset.
At the same time, it is becoming an industry trend for exchanges to heavily endorse high-quality assets and participate in the node mining industry.
Li Zipeng, a senior analyst at Standard Consensus, told Odaily: “The pledge rate of Tezos exceeds 70%, which means that the number of tokens in circulation is very small. The higher the price, the more people will stake, and the less the circulation, the easier it is for the price to be raised.
Of course, if the currency price falls, there will be a negative price-volume spiral, that is, the lower the price, the Stakers will sell, and the circulation will increase, and the lower the price will be. Therefore, when such tokens are prone to skyrocketing and plummeting, the recent rise is not only related to the benefits of Coinbase launching Tezos custody services and OKex launching Tezos transactions, but also related to the spiral feedback mechanism of Staking price volume. "
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Image source Huobi Global
The daily time frame from the XTZ/USDT trading pair shows that XTZ started an uptrend from November 7, and the price immediately broke the $0.85 support level, creating room for a continued upward move towards $1.85.
Coinbase announced on Twitter on November 7 that eligible US customers can obtain equity incentives by staking Tezos (XTZ) on Coinbase. The current annual return on staking assets such as Tezos is 5%. After the holding period (35-40 days) expires, the user can view the reward in the app. After the news was released, XTZ was greatly boosted, with a peak of more than 80% within a day.
Then, on December 15th, a report came out that Coinbase had become the largest verification node for Tezos (XTZ).
In addition to Coinbase, Binance is also quietly developing in the field of verification nodes. Currently, Binance ranks fourth in the Tezos node.
However, this phenomenon of exchanges participating in verification nodes has attracted the attention of Bobby Ong, co-founder of Coingecko. Mortgage as a service is difficult for exchanges to make a profit.
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Tezos three axes: Staking, governance and STO
The outside world has commented on Tezos like this: Tezos' competitiveness lies in three axes, Staking, governance and STO.
In addition to the buff blessing of mainstream exchanges such as Coinbase, these three axes are the most essential factors supporting the value of Tezos.
Staking is the foundation of Tezos. 2019 is a year when the Staking economy is booming. Major capitals, wallets and exchanges have deployed entrusted pledge services. The latest data shows that there are more than 80 blockchain projects with PoS mechanism in the world , 40% of the token supply is delegated to participate in the Staking economy, with a total capital of up to $6 billion. Among them, 47% (worth 181 million US dollars) of EOS tokens participated in the Staking pool.
In addition, Tezos has always done a good job in governance, which is also the biggest difference between Tezos and other public chains.
Kabaa, a KOL in the blockchain industry, told Odaily, "Tezos has always been popular in the West because it emphasizes "governance", emphasizes community building, and gives the community great rights, making everyone feel that this project belongs to the community. . "
Ethereum's current governance method is through EIP proposals. For example, in the recent Istanbul upgrade, several such EIP proposals were passed and then updated on the system. EIPs include detailed design documents that provide suggestions for improving the Ethereum blockchain, and their authors are often well-known in the community, but the process of these proposals is not displayed, recorded, or voted on-chain.
The so-called self-correcting governance model of Tezos, to put it bluntly, is to transfer the content of these system upgrades to the chain. All update proposals will be recorded on the chain, and community voting and testing will be carried out stage by stage, and finally passed. It will be adopted and a certain token reward will be given to the author.
In addition, Kaba said that Tezos has been developing in the direction of compliant finance, and has announced commercial cooperation with many countries and companies, such as STO, including real estate and financial services. Tezos is more advanced than other public chain projects in this regard. faster. "So from this point of view, it is very meaningful if Tezos provides more services in the direction of STO compliant finance. I think this may also be one of the logics of Tezos' rise." Kabaa said.
In February of this year, digital asset company Elevated Returns (ER) announced that it had chosen the Tezos blockchain to launch its real estate investment product, and plans to tokenize assets worth $1 billion in real estate on the blockchain.
In July of this year, a joint press release published on the website of the Tezos Foundation pointed out that BTG Pactual, the largest investment bank in Latin America, plans to transfer its securities token offering (STO), which may be worth $1 billion, to the Tezos blockchain. One of the reasons why the overseas community believes that it may have the potential to become the next Ethereum.
Adrian Brink, founder of Crytium Labs, also mentioned in an interview with Tezonomics: "Tezos should not try to win users from other blockchains. It is best to show people outside the currency circle that Tezos is a good thing. STO makes real estate Brokers are starting to list their holdings on Tezos, which tells me this is the way to go for Tezos.”
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Ecological sustainable development: the team is not short of money and recruits a wide range of developers
V God said in a recent interview that he suggested that the Ethereum Foundation sold 70,000 ETH at the high point in December 2017 (Odaily Note: ETH reached a high of $1,400 in January 2018. Therefore, if They sell at this price, then the value of 70,000 ETH will be about 100 million US dollars), but according to the internal staff of the foundation, starting from 2020, funding for most internal teams may be stopped.
In this regard, the Tezos Foundation expressed its willingness to fund, Tezos Foundation CSO and board member Ryan Lackey tweeted on the same day: "If there is a team funded by the Ethereum Foundation who wants to continue to do similar things in a cross-blockchain way, Tezos Foundations may be interested in providing funding."
After all, it was also a project that raised more than 200 million U.S. dollars, and investors included the Winklevoss brothers, founders of the Gemini exchange. For many project parties, one of the prerequisites for crossing bull and bear is sufficient funds.
For the public chain, attracting developers to develop the ecology must be the first task. Tezos has sufficient funds, so it is bound to spend some funds to attract developers to build an ecology in the Tezos network.
On December 14, the Tezos Foundation announced that 1,338 developers have completed or will complete the Tezos training course, indicating that the Tezos developer community currently has at least 1,300 people. Although it cannot be compared with the developer communities of Ethereum and EOS, this order of magnitude is still relatively prominent in the public chain.
Regardless of the future price trend of Tezos, the return of the value of the star public chain is a gratifying thing.
After a big wave, many once-hot public chain projects have returned to zero, or have been transformed into outsourcing and pseudo-"community". When the entire market is sluggish, the price return of Tezos can be regarded as a booster for the cryptocurrency market ——Price and value may still be linked, and projects that do things can still usher in the spring of the secondary market.
References:
References:
: Tezos has twists and turns, how to use POS and self-correction mechanism to speak?
Hot Wheels Community: "2020 Market Value Top 5 Scheduled, Will Tezos Be the Next Ethereum?" "
Lost fast chain: "Can Tezos (XTZ) work? "
