In the past few months the market hit a low and then raced to a local high. During this volatile ride, some coins got noticed with their new ATHs and independent orbits, while others pulled the market higher.
ADA, SOL, LUNA, AVAX and XTZ were among the few cryptocurrencies that achieved attractive returns at the time. In fact, at the time of writing, XTZ has just set new ATHs, which has sparked speculation and skepticism about the trajectory of the coin.
XTZ has brought huge profits to owners so far. XTZ’s one-day ROI versus USD is around 15% at press time, while its weekly ROI is 22% and its monthly ROI is around 50%. In fact, the price has increased nearly 40% since the beginning of October.
XTZ 4-Hour Price Chart | Source: Tradingview
These are pretty impressive numbers as XTZ and EGLD were the worst mid-cap altcoins in the 3rd week of September, however, XTZ rebounded along with the high trading volume after the price fell to $ 3 0.9 last month, which cranked the trip to a new ATH.
XTZ price (green) and volume (gray) | The source: Sanbase
The ATH from XTZ is supported by …
When XTZ’s real market cap hit an ATH of $ 4.25 billion, many attributed its resilience to the network’s growth after the Granada upgrade in early August. The upgrade improved several existing network functions such as halving the block time and reducing gas consumption through smart contracts.
Additionally, the NFT craze also helped the price of this altcoin skyrocket, as a number of organizations announced they would use the network for their NFT experiences, including Redbull Racing, McLarenF1, DojaCat and, most recently, the Premiere Football Club League Toulouse FC.
Indicators support the upward trend
XTZ’s adjusted NVT tended to be lower than the previous month. The Network Value to Transaction Ratio (NVT) emphasizes the value transmitted on the network equal to the network value or market capitalization. This is a good sign of growth.
In addition, data from Website The Tezos official shows that 76.4% of the total supply is staked on the network. Staking has essentially limited the number of tokens available in the market, which has resulted in a supply shortage and upward pressure on prices.
Since XTZ is currently setting an ATH on the spot market, the futures market is looking optimistic for the coin as well. In fact, the change in the number of open positions in the past 24 hours on the futures market reached an amazing + 123.37%.
XTZ Open Contract Statistics | The source: Coinlyze
Now that the pricing aspect seems justified, Tezos appears to be in the process of catching up to Ethereum’s dominance in the DeFi space. Tezos has more than 130 decentralized applications and projects under development in the network. However, with Tezos’ market cap still well below 2020, many are wondering whether the altcoin’s profits can hold up or just a passing performance in the market?
XTZ market capitalization | Source: Messari
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
At home at home
According to AMBCrypto