Here Are the Reasons Behind Tezos’s 60% Rise in a Fortnight

With Bitcoin testing the $45,000 mark the larger market including most of the top altcoins experienced a decent pump in price. In tandem with the BTC uptick, the global crypto market cap also tested the $2 trillion zone.

Some coins like Tezos, however, had a different reason for the high price rise in the last two weeks. 

Tezos’s Parabolic Recovery

For the most part of January, Tezos made lower lows and its price tested the $2.53 mark on January 24 making that the six-month low.

Nonetheless, XTZ’s price charted an almost parabolic recovery as its price appreciated by over 60% in the last two weeks. Tezos’s price at press time oscillated at $4.53 noting daily gains close to 10.56% and weekly gains over 20%.

That said, the altcoin’s trade volumes rose in tandem indicative of higher retail interest in the coin as the price appreciated. Reasons behind the coin’s recent uptick in price were aplenty. 

A More Vibrant Network

Report from Coin Metrics highlighted that towards the beginning of February, this year, activity within the Tezos ecosystem had picked up as NFT activity on the network continued to grow.

The chart below shows the daily number of transactions on Tezos broken down into transactions involving smart contracts and all other transactions.

XTZ’s daily transactions jumped in August 2021 after Tezos launched an upgrade cutting average block times in half. Transactions involving smart contracts have picked up as NFT platforms like FX Hash, a generative art platform started to see increased interest. 

Furthermore, the number of addresses holding at least 1 XTZ, recently surpassed 300K, rising from 120K at this time last year. Active addresses on the network too saw a healthy uptick as the number of active smart contract addresses saw a steady rise, likely as a result of new NFT contracts launching. 

Recently, Smartlink, a platform powered by the Tezos blockchain announced that it is ready to present its new NFT Launchpad, designed to become the home of the rarest curated NFTs on the internet. 

Seemingly, soaring NFT demand over the last months has acted as a catalyst in Tezos’s ecosystem growth thereby pushing price as well. The progressive growth of Tezos’s smart contract addresses and adoption for the past 12 months has further aided the coin’s growth.