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Bitcoin has outperformed most other assets so far this year and is set to be one of the best bets of 2020.
The price of bitcoin, after plunging in March due to a larger coronavirus-induced sell-off, has grown about 30% so far this year.
However, a minor cryptocurrency has nearly doubled in price since January, and many expect it to rise further.
Bitcoin has increased its dominance in the cryptocurrency market in recent months albeit some … [+]
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Tezos, traded as XTZ, has grown 85% since the beginning of the year, adding to the gains made last year and giving tezos a market cap of nearly $ 1.8 billion.
At the start of the year, tezos was the 15th most valuable cryptocurrency by market cap, according to data from CoinMarketCap, but it has now entered the top ten and could quickly outrun some rivals if its run continues.
“Tezos appears to be one of the most popular platforms to build new projects on at the moment,” said Mati Greenspan, founder of market analysis firm Quantum Economics, which owns some tezos.
“Several projects that I am currently recommending are using it. Additionally, tokenomics is structured in such a way that much of the incoming supply is diverted to staking and taken off the market.”
Tezos, which calls itself a “self-modifying cryptographic ledger” and uses the so-called proof-of-stake consensus model, has emerged as a preferred blockchain and cryptocurrency for tokenized ownership and security tokens.
As the bitcoin supply squeeze eased this week, some have suggested that those who maintain the bitcoin network, known as miners, could transfer their computing power to other cryptocurrencies, potentially giving them a boost.
However, tezos, which uses proof-of-stake instead of bitcoin’s proof-of-work, cannot be mined as bitcoin.
Proof-of-stake blockchains are generally believed to be more scalable and less resource-intensive as they do not require miners to solve complex mathematical problems to create the next block.
Furthermore, they incentivize the participation of tokenholders in network security.
Tezos holders, if their funds are stored in certain wallets, can “stake” their XTZs and receive additional tokens as a reward for creating and verifying new blocks in the chain.
The price of tezos has risen by around 40% in the past 12 months, outpacing the bitcoin rally.
Coinbase
“Tezos is not a proof of work based coin, so it cannot be mined,” said Joe DiPasquale, chief executive of hedge fund manager BitBull Capital.
“However, it is one of the most promising projects to come out of the early coin offering era, which gives it an edge in times like these, when the price of bitcoin appreciates and lifts the market for a few quality projects.”
Tezos has benefited from various platforms that support the ability to “target” tezos tokens in recent months, according to DiPasquale, who pointed to the US division of major bitcoin and cryptocurrency exchange Binance, “which is also a positive factor for the price.”
The tezos rally, which began in November last year, was also driven by major partnerships with the financial world and the so-called Tezos Foundation’s Faucet, which rewards users up to 0.01 XTZ every 12 hours.
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